Bates College
PA-9: Committee on Investor Responsibility

Policy on Environmental, Social and Governance Considerations The Endowment’s strategic asset allocation is constructed to properly balance the need for liquidity, growth and/or preservation of purchasing power, and tolerance for risk. The primary criterion for the selection of the Endowment investment is to maximize return within defined risk parameters, which in turn, maximizes the financial support for the College. In addition, Bates is committed to balancing the financial objectives of the Endowment with the social and environmental priorities of the broader Bates community. The Investment Committee and CIO will consider social, environmental and governance impacts when selecting Investment Managers across all asset classes. The Investment Committee and CIO welcome input from student or faculty groups in assessing the priorities of the Bates community with regard to environmental, social and governance issues. There is to be a sub-committee which shall determine if, and when, sufficient evidence is presented to challenge the operative assumption that acquisitions and holdings in the portfolio conform to the guidelines.

Members of the CIR are taken from our board investment committee - Ava Clayton Spencer, J.D., President; ex officio Lewiston, Maine Michael Weston Bonney, B.A.; Chair Boston, Massachusetts Mary Henderson Pressman, B.A.; Vice Chair New York, New York Lisa Brennan Barry, M.S.; Secretary Chevy Chase, Maryland Stuart Bradley Abelson, M.B.A. Gloucester, Massachusetts Chris Gerard Barbin, B.A. Winnetka, Illinois H. Scott Bierman, Ph.D. Beloit, Wisconsin Andrea Conklin Bueschel, Ph.D. Chicago, Illinois Ann Elizabeth Bushmiller, J.D. Washington, District of Columbia William Charles Carey, B.A. Lincoln, Massachusetts Darrell William Crate, M.B.A. South Hamilton, Massachusetts Gregory Albert Ehret, M.B.A. Boston, Massachusetts Geraldine Meeks FitzGerald, B.A. New York, New York Scott David Freeman, M.B.A. Needham, Massachusetts Marjorie Northrop Friedman, J.D. Park City, Utah Stephen Mark Fuller, M.B.A. Freeport, Maine John Davies Gillespie, M.B.A. Guilford, Connecticut Christopher Joseph Gorayeb, J.D. New York, New York Erik Ola Jarnryd, M.B.A. Concord, Massachusetts David William Longdon III, B.A. Brooklyn, New York Mark David Mandel, M.B.A. Dover, Massachusetts Paul Marks, B.A. Shanghai, China Dervilla Mairin McCann, M.D. Winthrop, Maine Jamie Peter Merisotis, B.A. Indianapolis, Indiana Judith Burns Miller, B.A. Old Greenwich, Connecticut John Prescott Murchison III, M.S. Los Angeles, California Carol Lind Rattray, M.B.A. New York, New York John T. Rossello Jr., B.B.A. Holliston, Massachusetts Jeremy Michael Sclar, B.A. Brookline, Massachusetts Richard L. Smith, Ph.D. Lexington, Massachusetts Emma Alden Sprague, B.A. Washington, District of Columbia William Floyd Sweat, M.B.A. Dundee, Oregon Garth A.L. Timoll, M.B.A. San Francisco, California Quoc Kinh Tran, M.B.A. Kentfield, California Lisa Marie Utzschneider, M.P.A. New York, New York Jean Patricia Wilson, M.S. Falmouth, Maine

Last year, our CIR put forth a statement on divestment for Bates: Investment Bates believes that incorporating the long-term risks of climate change into the fundamental work of managing the endowment leads to stronger and more durable investment results. Consistent with the college’s principled and pragmatic approach to sustainability efforts on campus, Bates has similarly considered environmental principles when investing the college’s endowment. Since 2015, the college has halved its investment in traditional fossil fuel-based energy companies from more than six percent to three percent of the endowment, following a steady plan to reduce exposure over time. We have achieved this through a number of actions, including liquidating our public energy-focused funds, allowing our private energy partnerships to wind down, electing to transition alternative investments into a fossil-fuel-free share class, and screening our bond portfolio to eliminate oil, gas and coal holdings. Going forward, Bates has formalized efforts aimed to further reduce endowment holdings in fossil fuel related companies. Specifically, Bates will: • Instruct managers of separately managed equity accounts to sell all stocks of fossil fuel companies, such as oil, gas, and coal, and to refrain from purchasing these types of securities in the future. • Elect “fossil fuel-free” share classes of alternative investments whenever available. • No longer commit to new investments in private fossil fuel extraction, exploration, and production funds. The college’s last commitment in this area was made in early 2017, and the college’s involvement with these investments will end as they wind down. • Actively seek to add renewable resource-focused investments (wind, solar, and other green-specific investments) to the endowment. We believe these actions are consistent with the college’s efforts to incorporate environmental implications into our behaviors and activities on campus. Furthermore, we believe these actions reflect our commitment to act globally and responsibly to combat the climate crisis.