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Edinburgh Uni Divests from US Drone Component Maker Ultra Electronics

The University of Edinburgh is withdrawing its investment in Ultra Electronics, a UK defence firm supplying components for US drones. This decision follows pressure from student and human rights campaigners citing social responsibility concerns.

  • University of Edinburgh to withdraw £1.2m investment from Ultra Electronics.
  • Decision driven by student and campaign group pressure over 'socially responsible investment'.
  • Ultra Electronics manufactures navigation controls for US Predator and Reaper drones.
  • Campaigners now urge further divestment from fossil fuel companies by the university.

The University of Edinburgh has dumped a £1.2 million stake in defence firm Ultra Electronics over concerns about the company's role in manufacturing components for US drones that have killed hundreds of civilians overseas. The university's decision follows sustained pressure from student groups and human rights campaigners who argued that investing in the company was not 'socially responsible'.

Ultra Electronics, based in Middlesex, supplies navigation controls to the US fleet of Reaper and Predator unmanned aerial vehicles (UAVs), which have been deployed in 'targeted killing' missions in countries such as Pakistan, Yemen, and Somalia. Reports from the Bureau for Investigative Journalism indicate that over 430 strikes since 2002 have resulted in at least 428 civilian deaths, including 173 children.

Human rights lawyers argue that these attacks may breach international law, particularly in countries where the US is not officially at war. In May, a Pakistani high court declared the drone strikes as war crimes, and the United Nations is investigating the matter. A freedom of information request revealed that Edinburgh University had invested £1,244,672 in Ultra Electronics at the close of 2012.

While the university said the investment was under 'active management' and reduced to approximately £400,000 since then, it has confirmed plans to disinvest following pressure from student groups. Undine Schmidt from environmental group People and Planet welcomed the move: 'The process of cleaning up the university's investments can and must be taken further.'

Why this matters: This decision highlights a growing emphasis on ethical considerations within institutional investment, potentially influencing how other UK universities and large funds manage their portfolios. It reflects evolving societal values impacting financial decisions.

What this means for you: What this means for you: This development could influence the ethical investment options available to you, particularly through pension funds or managed investment portfolios. It may also prompt your own financial institutions to review their social responsibility policies, potentially affecting where your money is invested. For specific financial advice, consult a qualified financial adviser.

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