Hampshire College
PA-8: Committee on Investor Responsibility

Hampshire College has a longstanding policy of Environmental, Social and Governance (ESG)-oriented investing, which dates back to the college’s early days. As an example, Hampshire was the first college to divest from South Africa. Hampshire’s Investment Policy (adopted December 2011, amended November 2015) is grounded in ESG principles, and requires the college to favor investments that do right by the environment, employees, and supply chains, and are governed with transparency and fairness, and to disfavor investments that don’t achieve these goals.
See more overview at https://www.hampshire.edu/news/2016/04/19/statement-on-investment-policy-and-fossil-fuel-and-private-prison-industries

Responsible investing is under the purview of the Hampshire College Board of Trustees Investment Finance Committee - https://www.hampshire.edu/offices/committees-of-the-board-of-trustees
The full Charter of the Investment Sub-Committee is available at https://www.hampshire.edu/sites/default/files/bot/files/Investment%20Committee%20charter.pdf

Hampshire's Policy on Environmental, Social and Governance Investing:
https://www.hampshire.edu/sites/default/files/shared_files/Hampshire_ESG_Policy.pdf

The Trustees Investment Committee is advised by the Committee at Hampshire On Investment Responsibility (CHOIR)
The Charge of the Committee at Hampshire On Investment Responsibility:
To make recommendations to the Investment Committee regarding the maintenance and the modification of investment responsibility guidelines; to review the way in which the Investment Committee interprets the guidelines and whether the College’s investment managers are in compliance with the investment guidelines; to keep the Hampshire community informed of its activities; to provide all relevant information in its possession to the Investment Committee, especially as concepts and findings that bear on business practices related to environmental, social, and governance issues evolve; and to provide the full board of trustees with a copy of its recommendations to the Investment Committee.

Hampshire College Policy on Environmental, Social, and Governance Investing (last amended 2015)
https://www.hampshire.edu/offices/hampshire-college-investment-policy

View the Investment Transparency Summary Report: https://www.hampshire.edu/sites/default/files/offices/Investment%20Transparency%20Summary%20Report%20-%20093017.pdf

View the Key Manager Table:
https://www.hampshire.edu/sites/default/files/offices/Key%20Managers%20-%20093017.pdf

View the Fossil Fuels Screen:
https://www.hampshire.edu/sites/default/files/bot/files/FossilFuelScreen-03312017.pdf

Hampshire practices affirmative investing in support of institutional values, including seeking to support clean energy and innovation in relation to environmental protection.

The policy states: “Business practices that include safe and supportive work environments, products that build economic strength, and activities that benefit the disadvantaged, including charitable giving, enhance the financial security and long-term sustainability of companies in which the College invests.” Whereas, “Poor business practices related to human rights, the workplace and the environment pose reputational, financial, operational and legal risks to the College’s investments and therefore the future financial security of the College.”

Under the policy, Hampshire favors investments in businesses that emphasize providing beneficial goods and services, pursuing research and development programs that hold promise for new products of social benefit and for increased employment prospects, maintaining fair labor practices, maintaining a safe and healthy work environment, demonstrating innovation in relation to environmental protection, using their power to enhance the quality of life for the underserved segments of our society and encourage local community reinvestment, and having a record of sustained support for higher education.

Hampshire College CHOIR membership (2017-2018):
Chair: Dick Hurd (Trustee)
Carol Varney (Trustee)
Nirman Dave (Student trustee)
CHOIR members by virtue of being on Finance Committee:
Marlon Becerra (student)
Amy Dryansky (staff)
Sarah Hews (faculty)

1. Hampshire College helped co-found the the Intentional Endowments Network with Second Nature
From http://www.intentionalendowments.org/history:
"In April 2014, a group of 120 leaders from the investment, higher education, foundation, and non-profit communities gathered to explore the concept of the "Intentionally Designed Endowment." Georges Dyer and Tony Cortese worked with Second Nature* and Hampshire College to convene the gathering and designed it in collaboration with a planning committee of experts and practitioners."
"With continued engagement from Hampshire College, Second Nature, and participants of the April event, Second Nature’s founder, Tony Cortese, and Georges Dyer, established the Intentional Endowments Network, a non-profit, collaborative initiative. Ceres, a pioneer in mobilizing investor action and director of the Investor Network on Climate Risk (INCR), comprised of 100 leading investors collectively managing more than $13 trillion in assets, served as the fiscal sponsor to get the project off the ground. In 2015, the IEN principals formed The Crane Institute of Sustainability, Inc. to serve as the organizational home for the initiative. In 2016, the Crane Institute was granted 501(c)(3) tax-exempt status."
Hampshire College's recent Trustee David Dinerman remains a co-chair of their Executive Committee (http://www.intentionalendowments.org/executive_committee). Intentional Endowments Network now has a national scope and is entirely focused on socially responsible investing and documenting the positive financial outcome that results. Hampshire is proud to have helped this organization get started!

2. In 2016, in response to 350.org's campaign for divestment from fossils fuels, and a request from Hampshire students for the College to divest from the private prison industry and related businesses, Hampshire College published this statement on investment policy and fossil fuel and private prison industries:
https://www.hampshire.edu/news/2016/04/19/statement-on-investment-policy-and-fossil-fuel-and-private-prison-industries

1. The Intentional Endowments Network has published a case study of how Hampshire College undertook this challenge as it implemented a policy and process for mission-based investing. The report is included here as "Additional documentation" A news summary of the report is available here:
https://www.hampshire.edu/news/2017/11/17/new-case-study-details-hampshire-college%E2%80%99s-mission-based-endowment-investing