U of M on board with responsible investing principles

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This article was published 05/04/2023 (1155 days ago), so information in it may no longer be current.

The University of Manitoba has officially joined the movement to institutionally commit to implement responsible investing principles.

The post-secondary institution’s board of governors approved a new Responsible Investing Policy last week, which was the result of a multi-year process.

While it is now official and documented policy that, for instance, its nine external investment managers will follow, university officials say that it is in line with the university’s already existing commitment to sustainability and efforts to address climate change.

The new policy follows a recent report, called “Incorporating Responsible Investment Principles at the University of Manitoba”, which was a couple of years in the making. It outlines the U of M’s commitment to give priority to social and environmental issues in decisions related to the university’s investments, such as the university’s endowment fund, the University Investment Trust.

“The report and the new policy are two really big steps,” said Naomi Andrew, the U of M’s vice-president administration.

The report was produced by a committee made up of a broad cross section of the university community including students, faculty, administration and its sustainability office. The process of maintaining and fine-tuning the policy will be ongoing with more consultations, for instance with the university’s office of the vice-president Indigenous, Andrew said.

Some of the highlights of the new policy include active ownership to influence corporate environmental, social and governance (ESG) performance; investing in companies with a positive impact on social or environmental issues; selling off any investments in companies that violate the rights of Indigenous peoples or companies related to fossil fuels; due diligence in avoiding and addressing adverse impacts of investments through responsible business conduct; and tracking and reporting of carbon emissions in investments.

Lance McKinley, director of the university’s office of treasury services, said the university’s endowment fund has already made a $45 million investment in the Brookfield Global Transition Fund whose investments focus on the transition to a net-zero economy.

Among other things the new investment policy declares that the university will not make any new direct investments in fossil fuel supply companies or mineral rights.

McKinley said the endowment fund — whose valuation is currently around $1 billion — does not hold any such investments right now.

While the U of M is not the first university in the country to establish such a policy, it is also not the last.

“We have benefited from the work that has been done at other universities. Our responsible investment committee looks to lead in the area of Indigenous investing that goes beyond ESG to really look at how we mitigate and prevent social and environmental harm. That is where we hope to be a leader,” Andrew said.

While there is some push-back in some quarters around the world to the movement towards more socially conscious and ESG-focused investing and management, Andrew and McKinley are confident it is the right thing to do.

As well, McKinley said the new investment policy does not alter the ultimate goal of growing the endowment fund.

“The endowment fund is a long term fund,” he said.

“We really believe these companies that we will invest in over the long-term will be to the betterment of the endowment fund in the long-term. We still want to make sure we are investing our donors’ money in ways that will support students today and tomorrow. We don’t want the risk-return objectives of the fund to change. We still want to invest our money in the best way possible on a social, environmental basis but also on a risk-return basis.”

martin.cash@freepress.mb.ca