University to be 'free of fossil fuel investments' by 2021
Edinburgh University's decision follows the 2016 commitment to become carbon neutral by 2040.
The University of Edinburgh is to complete its transition out of fossil fuel investments within three years.
The decision, approved by ruling body the University Court on Monday, follows the commitment made in 2016 to become carbon neutral by 2040.
Investment in fossil fuels currently represents less than 1% of the total University of Edinburgh funds under management, which is around £1bn.
In May 2015, the university signalled its intention to use its investments and procurement power to support the transition to a low carbon economy and to divest from the most polluting fossil fuel companies.
And within weeks £2.5m of investment was removed from firms involved in coal and tar sands.
Professor Charlie Jeffery, the University's Senior Vice-Principal said: "I'm very proud of the University's decision.
"Climate change is one of the world's biggest challenges.
"Over the past few years, we have thought hard about how to respond to that challenge.
"This change in our investment strategy is a vital step on that journey."
The university said it has invested more than £150m in low carbon technology, climate-related research and businesses that directly benefit the environment since 2010.
Ollie Glick, Edinburgh University Students' Association's vice-president community, said "We are delighted with today's announcement.
"Students and the Students' Association have been passionate about removing fossil fuel investment from the University's portfolio for many years."