| Overall Rating | Gold |
|---|---|
| Overall Score | 79.37 |
| Liaison | Jillian Leach |
| Submission Date | March 4, 2022 |
California State University, Chico
PA-10: Sustainable Investment
| Status | Score | Responsible Party |
|---|---|---|
|
1.25 / 5.00 |
Jennifer
Rotnem Director of Energy and Sustainability FMS |
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) | 0 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) | 0 US/Canadian $ |
| Green revolving funds funded from the endowment | 0 US/Canadian $ |
A brief description of the companies, funds, and/or institutions referenced above:
N/A
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:
In the Master Investor Policy for the CSU, "the Board acknowledges the importance of understanding the potential; risks and value that environmental, social, and governance ("ESG") factors may have on CSU investments. Therefore, the Boards expects that the consideration for ESG factors shall be integrated into the investment decisions of the CSU."
Socially responsible investing is an investment strategy that seeks to consider both financial return and how the environmental/social/governance practices of the company impact the good of society.
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:
In May 2021, Chancellor Castro tasked the CSU's Investment Advisory Committee (IAC) to review the university's investments to ensure alignment between the university's fiduciary responsibility and its commitment to sustainability. At the conclusion of their meeting on October 6, the IAC shared its recommendations with the Chancellor, who agreed to adopt them and has tasked staff at the Chancellor's Office with implementation. The IAC's recommendations included:
-- Liquidating fossil fuel-related bonds held in SWIFT as soon as reasonable and restrict future fossil fuel investments for that same portfolio and the IDP.
Transition out of the TRP's direct energy mutual fund and into other non-fossil fuel mutual funds.
--Work as appropriate and feasible to further reduce fossil fuel exposures in the TRP, which due to legislative restrictions is limited to mutual funds.
--Allow CSU investment managers discretion to continue to invest in businesses that are successfully transitioning to sustainable green business models.
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:
N/A
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:
CSU investments are centrally managed on behalf of the system and its campuses. California State University (CSU) Chancellor Joseph I. Castro announced that the university will not pursue any future investments in fossil fuels in the university's three investment portfolios: Systemwide Investment Fund Trust (SWIFT), Intermediate Duration Portfolio (IDP) and Total Return Portfolio (TRP).
In May 2021, Chancellor Castro tasked the CSU's Investment Advisory Committee (IAC) to review the university's investments to ensure alignment between the university's fiduciary responsibility and its commitment to sustainability. The IAC shared its recommendations with the Chancellor, who agreed to adopt them and has tasked staff at the Chancellor's Office with implementation. The IAC's recommendations included:
-- Liquidating fossil fuel-related bonds held in SWIFT as soon as reasonable and restrict future fossil fuel investments for that same portfolio and the IDP.
Transition out of the TRP's direct energy mutual fund and into other non-fossil fuel mutual funds.
--Work as appropriate and feasible to further reduce fossil fuel exposures in the TRP, which due to legislative restrictions is limited to mutual funds.
--Allow CSU investment managers discretion to continue to invest in businesses that are successfully transitioning to sustainable green business models.
For more information: https://www.calstate.edu/csu-system/news/Pages/California-State-University-Will-Not-Make-Future-Fossil-Fuel-Investments-in-University-Investment-Portfolios-and-Funds.aspx
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:
N/A
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:
For more information about CSU Divestment: https://www.calstate.edu/csu-system/news/Pages/California-State-University-Will-Not-Make-Future-Fossil-Fuel-Investments-in-University-Investment-Portfolios-and-Funds.aspx
California State University Investment Advisory Committee: https://www.calstate.edu/csu-system/administration/business-finance/financing-and-treasury/Pages/Investment-Advisory-Committee.aspx
CSU Master Investment Policy:
https://www.calstate.edu/csu-system/administration/business-finance/financing-and-treasury/Documents/CSU-Master-Investment-Policy-2017_11_08.pdf
For more information about CSU Divestment: https://www.calstate.edu/csu-system/news/Pages/California-State-University-Will-Not-Make-Future-Fossil-Fuel-Investments-in-University-Investment-Portfolios-and-Funds.aspx
California State University Investment Advisory Committee: https://www.calstate.edu/csu-system/administration/business-finance/financing-and-treasury/Pages/Investment-Advisory-Committee.aspx
CSU Master Investment Policy:
https://www.calstate.edu/csu-system/administration/business-finance/financing-and-treasury/Documents/CSU-Master-Investment-Policy-2017_11_08.pdf
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