American University
PA-13: Committee on Investor Responsibility

From AU Board of Trustees report on Nov. 18, 2013: "Among the topics discussed at both the full board meeting and at the town hall was that of socially responsible investing, which is an important issue being debated on campuses nationwide. To follow up the previous request by the board, an advisory committee on socially responsible investing is being created through the Office of the CFO, Vice President and Treasurer to advise the university regarding ethical, social, and environmental issues that might influence the management of AU’s endowment. The committee will be advisory in nature, and will have nine voting members, including four students, three faculty, one staff, and one alumni member. Appointments will be made and the first meeting convened before the end of the semester."

The committee "will have nine voting members, including four students, three faculty, one staff, and one alumni member."

In May 2013, the board established the Advisory Committee on Socially Responsible Investing (ACSRI) to provide guidance and input by AU community members to the board’s Finance and Investment Committee on the climate change issue. ACSRI’s charge was to explore options the board might consider through the management of its endowment and to address a series of critical questions the board identified (see american.edu/trustees/upload/051713.pdf.) For the May 2014 board meeting, ACSRI presented an interim report and recommended that the board consider three options for new, meaningful actions, including: Partial Divestment—from AU’s endowment (focused on the Carbon 200 fossil fuel companies). Investment—in alternative energy funds. Engagement—with energy companies through shareholder actions. The Finance and Investment Committee met several times to review the report and these recommendations. It received guidance from AU’s General Counsel and from our Cambridge investment advisors, and it made a recommendation to the full board.