California Polytechnic State University
PA-9: Sustainable Investment

SOCIAL RESPONSIBILITY CONCERNING INVESTMENTS I.BACKGROUND AND PURPOSE A.The Board of Trustees of the California State University adopted a resolution urging its recognized CSU Auxiliary organizations to issue statements of social responsibility and to follow those precepts in examining past and considering future investment policies. In response to the Trustees’ resolution, the Cal Poly Foundation will endeavor to consider all relevant facts and circumstances in making investment decision, including the risks and opportunities of environmental, social and corporate governance features. The Cal Poly Foundation has a fiduciary responsibility to maximize investment returns on its endowment consistent with the level of risk while ensuring good stewardship of these assets that will enable continued financial support to further the educational mission of the University. II.POLICY A.The Foundation Board of Directors recognizes and accepts its social responsibility with respect to the investment of funds. B.The investment policy and practices of the Foundation shall include Cal Poly Foundation the evaluation of present and contemplated investments, not otherwise restricted in trust, in companies which do business abroad in the light of said responsibility. C.Definitions. (1)“Socially Responsible Investing”, a term that is interchangeable with “Sustainable and Responsible Investing”, is an investment discipline that considers environmental, social, and corporate governance (ESG) criteria to generate long-term competitive financial returns and positive societal impact. D.Reporting. (1)To ensure transparency, accountability and progress, the Investment manager will establish a reporting cycle with the Investment Committee. III.REVIEW A.The Investment Committee of the Foundation Board of Directors will review this policy five years from the most recent updated date to determine its effectiveness and appropriateness. The policy may be evaluated before that time as necessary to reflect substantial organizational, financial, or physical change(s) at the Foundation or any change required by law or by other governing policy.

Board approved Cal Poly Foundation Fund Manager Kapsick to offer an ESG fund option for new donors. The California State University as a system became a signatory to the Global Investor Statement on Climate Change. Consistent with our fiduciary responsibilities, this statement includes a broad range of commitments to address climate risks and opportunities. The statement may be found here: https://www.iigcc.org/resource/2014-2015-global-investor-statement-on-climate-change/

BOARD OF DIRECTORS MEETING Novemberl0,2018 PAGE 2: Policy Review Schedule Summary Draft Cal Poly Foundation 401 Social Responsibility Concerning Investments Mr. Ronca called on Treasurer Marc Benadiba to review proposed changes to Cal Poly Foundation Investment Policy 401 Social Responsibility Concerning Investments. Policy 401 has been in effect since January 1, 2007, and had not been reviewed or amended since its effective date. The purpose of the review was to determine its continued relevancy; validate references; propose modifications to improve the policy. A motion was made, seconded, and passed approving the policy.

On January 9, 2017, Cal Poly Foundation Board Liaison Ericka Horn and then Treasurer of the Foundation, Grant Trexler attended a panel about sustainable investing at the 2017 CSU of Auxiliary Organizations Association (AoA) conference in San Diego hosted by SF State Foundation President Robert Nava spoke. Socially responsible investing is a major issue on campuses across the country, and the CSU campuses are no different. In the past, the approach was largely reactionary (i.e. divesting), but three campuses within the California State University system – CSU Northridge, San Francisco State University and CSU Fresno – have taken a more proactive approach to sustainable investing. The AoA conference session provided an opportunity to describe the three campuses’ approach in incorporating environmental, social and governance strategies into their investing.