Amherst College
PA-4: Sustainable Investment Program

https://www.amherst.edu/about/sustainability/reporting-and-operations/sustainability-reports/investment

The following language is included in the college’s Investment Policy Statement:

"I.  SOCIALLY RESPONSIBLE INVESTING

1. PROXY VOTING GUIDELINES

The Committee recognizes that publicly traded securities and other assets of the Fund include the right to vote on shareholder resolutions at companies’ annual shareholders’ meetings. 

For the portion of the portfolio where company stock is directly purchased on behalf of the Fund (versus units of pooled investment vehicles), the responsibility of voting the proxies resides with the Committee.  The Committee has delegated this responsibility to the CIO.  The CIO will research and solicit recommendations on various proxy issues in accordance with socially responsible and sustainable investing practices to consider in making a final vote on individual proxies.  Amherst College will generally support reasonable and well-constructed shareholder resolutions seeking company disclosure of greenhouse gas emissions, analyses of the impact of climate change on a company’s business activities, strategies designed to positively influence the company’s long-term impact on the global climate, and a company’s support of sound and effective governmental policies on climate change.

The CIO will prepare an annual report on all proxy activity.  Information regarding proxy votes will be posted to the Investment Office website on a periodic basis so that it can be viewed by interested parties in the Amherst College community.  

2. TRUSTEE RESOLUTIONS

Trustee resolutions, particularly any divestment action, should be considered rarely and only in the face of human atrocities that are wholly inconsistent with the moral and ethical values of Amherst College.  Where deemed appropriate, specific resolutions that are taken in regards to these issues will be included in Appendix C and reviewed annually to determine if they warrant ongoing inclusion in the Investment Policy Statement.

3. SUSTAINABILITY

As a long-term investor, Amherst College is exposed to long-term risks, including those posed by climate change and other environmental and social risks.  The College will incorporate consideration of environmental and social risks in its investment process.  Where deemed appropriate, specific actions might be taken in regards to these risks.  These will be reviewed annually to determine if they warrant ongoing inclusion in the Investment Policy Statement."

https://www.amherst.edu/about/president-college-leadership/trustees/statements/node/797137

Amherst has commited to divest from fossil fuels. Specifically, the commitment approved by the Board of Trustees with respect to the College’s management of the Amherst endowment states that the college will:

• Make no new investments in public or private equity fossil fuel investment funds.  
• Phase out the remaining investments in directly held, long-term fossil fuel funds over time. By 2025, we anticipate that these investments will have been reduced by 60% from current levels, and that we will no longer hold any such investments on or about 2030.
• Instruct the managers of our separately managed accounts not to acquire or hold on our behalf direct investments in fossil fuel companies.
• Continue to engage with all of our managers to ensure that each appropriately incorporates long-term risks, including those posed by climate change, into their investment analysis. This includes our generalist investment managers who may, from time to time, hold investments in fossil fuels.

The following language is included in the college’s Investment Policy Statement:

"1. PROXY VOTING GUIDELINES

The Committee recognizes that publicly traded securities and other assets of the Fund include the right to vote on shareholder resolutions at companies’ annual shareholders’ meetings. 

For the portion of the portfolio where company stock is directly purchased on behalf of the Fund (versus units of pooled investment vehicles), the responsibility of voting the proxies resides with the Committee.  The Committee has delegated this responsibility to the CIO.  The CIO will research and solicit recommendations on various proxy issues in accordance with socially responsible and sustainable investing practices to consider in making a final vote on individual proxies.  Amherst College will generally support reasonable and well-constructed shareholder resolutions seeking company disclosure of greenhouse gas emissions, analyses of the impact of climate change on a company’s business activities, strategies designed to positively influence the company’s long-term impact on the global climate, and a company’s support of sound and effective governmental policies on climate change.

The CIO will prepare an annual report on all proxy activity.  Information regarding proxy votes will be posted to the Investment Office website on a periodic basis so that it can be viewed by interested parties in the Amherst College community. 

The college uses ISS ESG proxy voting guidelines to vote proxies for directly held stocks. We pay ISS an annual fee to provide us guidance on proxy voting. They do the research and provide recommendations to us which we then use to submit our votes.

The majority of the shareholder proposals we are voting on relate to ESG. 

Amherst works with the Ceres Investor Network to provide guidance on shareholder recommendations for the Climate Action 100+ companies they have identified as the most impactful on climate impacts. If the college owns any of these companies, Amherst's investment office works with CERES on shareholder resolutions and proxy voting. 

Amherst College is a member of the Investor Network on Climate Risk (INCR), an investor network managed by CERES. As part of its involvement with the INCR, Amherst has supported two letter writing initiatives: one to the finance ministers of the Group of Seven in support of a long-term global emissions reduction goal and one in support of the White House’s proposal to reduce methane emissions from the oil and gas industry by at least 45% below 2012 levels by 2025.