UNSW says it will divest of fossil fuel assets by 2025 as part of a net zero emissions goal.

The university says it is dropping direct ownership and any commingled funds that include public equities and corporate bonds of companies whose primary business is the ownership and exploitation of fossil fuels reserves by 2025.

Reports say UNSW has an investment portfolio totalling $460 million, about $28 million of which is held in stocks and bonds of fossil fuel companies.

The plan is to scrap those holdings by 2025 at the latest.

The UNSW decision brings it in line with Queensland University of Technology and La Trobe University.