| Overall Rating | Gold |
|---|---|
| Overall Score | 71.19 |
| Liaison | Margaret Bounds |
| Submission Date | March 1, 2024 |
Connecticut College
PA-10: Sustainable Investment
| Status | Score | Responsible Party |
|---|---|---|
|
0.97 / 3.00 |
Margaret
Bounds Director of Sustainability Office of Sustainability |
Total value of the investment pool:
Value of holdings in each of the following categories:
| Value of holdings | |
| Sustainable industries (e.g., renewable energy or sustainable forestry) | 77,705.86 US/Canadian $ |
| Businesses selected for exemplary sustainability performance (e.g., using criteria specified in a sustainable investment policy) | 0 US/Canadian $ |
| Sustainability investment funds (e.g., a renewable energy or impact investment fund) | 0 US/Canadian $ |
| Community development financial institutions (CDFIs) or the equivalent | 0 US/Canadian $ |
| Socially responsible mutual funds with positive screens (or the equivalent) | 41,101,610.14 US/Canadian $ |
| Green revolving funds funded from the endowment | 0 US/Canadian $ |
A brief description of the companies, funds, and/or institutions referenced above:
The college is invested in three funds that we believe apply for this credit. For the first, the manager focuses on management team ethics and shareholder alignment, when researching investments. Given this framework, the manager is generally precluded from investment in pollutive industries (e.g., fossil fuels), weapons manufacturers, companies with poor governance, companies with corrupt business practices, and low-cost manufacturing businesses that may exploit their labor force.
Another fund considers integrity of management and commitment to proper corporate governance factors as critical factors when deciding whether to invest in a company. Metrics such as carbon emissions, exposure to fossil fuel reserves and water intensity are reviewed and they will therefore exclude companies that are involved in coal mining, weapons, and fossil fuel.
The final fund manager primarily invests in high-quality companies which are screened on an ESG basis, and “positive impact” municipalities which provide exposure to “impact” through investments in healthcare, education, infrastructure, transportation, and housing.
Percentage of the institution's investment pool in positive sustainability investments:
Does the institution have a publicly available sustainable investment policy?:
A copy of the sustainable investment policy:
The sustainable investment policy:
"The College supports the practice of incorporating environmental, social, and governance (“ESG”) factors with conventional financial analytical tools to improve the long-term, risk adjusted returns of the portfolio. ESG factors may help identify potential opportunities and risks which conventional tools miss. ESG considerations are a factor in the analysis and should not be used as exclusionary screens to eliminate specific companies or sectors from consideration. Relevant ESG factors will vary by industry and should be applied appropriately to help assess risk and return.
The College seeks to achieve increased diversity, equity and inclusion (“DEI”) within its investment portfolio through inclusive investment practices. When evaluating investment managers, an important criteria will be diversity at the ownership and portfolio management levels, DEI policies at the investment firm, and to what extent the investment strategy improves opportunities for diverse entrepreneurs, consumers, and/or borrowers. By focusing on this topic, the College strives to enhance opportunities in the investment industry and in society for diverse individuals, and also believes it will lead to better investment outcomes.
The College will periodically monitor the ESG and DEI characteristics of the portfolio’s current investment managers while incorporating analysis of these initiatives into the due diligence process of new managers. The College will be flexible, pragmatic, and open to evolving its approach to ESG and DEI overtime. "
Does the institution use its sustainable investment policy to select and guide investment managers?:
A brief description of how the sustainable investment policy is applied:
The sustainable investment policy is applied during both the due diligence of new investment managers and monitoring of existing investment managers. The Investment Committee reviews the overall portfolio's Environmental, Social, and Governance (ESG) and diversity characteristics on an annual basis.
Has the institution engaged in proxy voting, either by its CIR or other committee or through the use of guidelines, to promote sustainability during the previous three years?:
A copy of the proxy voting guidelines or proxy record:
A brief description of how managers are adhering to proxy voting guidelines:
Has the institution filed or co-filed one or more shareholder resolutions that address sustainability or submitted one or more letters about social or environmental responsibility to a company in which it holds investments during the previous three years?:
Examples of how the institution has engaged with corporations in its portfolio about sustainability issues during the previous three years:
Does the institution participate in a public divestment effort and/or have a publicly available investment policy with negative screens?:
A brief description of the divestment effort or negative screens and how they have been implemented:
Approximate percentage of endowment that the divestment effort and/or negative screens apply to:
Does the institution engage in policy advocacy by participating in investor networks and/or engage in inter-organizational collaborations to share best practices?:
A brief description of the investor networks and/or collaborations:
Website URL where information about the institution’s sustainable investment efforts is available:
Additional documentation to support the submission:
Data source(s) and notes about the submission:
Information was provided by the Interim Vice President for Finance and Cambridge Associates, our investment management firm.
The information presented here is self-reported. While AASHE staff review portions of all STARS reports and institutions are welcome to seek additional forms of review, the data in STARS reports are not verified by AASHE. If you believe any of this information is erroneous or inconsistent with credit criteria, please review the process for inquiring about the information reported by an institution or simply email your inquiry to stars@aashe.org.