| Overall Rating | Silver |
|---|---|
| Overall Score | 57.31 |
| Liaison | Feng Teter |
| Submission Date | Dec. 4, 2023 |
California State University, Fresno
PA-10: Sustainable Investment
| Status | Score | Responsible Party |
|---|---|---|
|
1.25 / 5.00 |
Sue
Shaw Project Manager Administration |
Total value of the investment pool:
Value of holdings in each of the following categories:
| Value of holdings | |
| Sustainable industries (e.g., renewable energy or sustainable forestry) | 0 US/Canadian $ |
| Businesses selected for exemplary sustainability performance (e.g., using criteria specified in a sustainable investment policy) | 0 US/Canadian $ |
| Sustainability investment funds (e.g., a renewable energy or impact investment fund) | 0 US/Canadian $ |
| Community development financial institutions (CDFIs) or the equivalent | 0 US/Canadian $ |
| Socially responsible mutual funds with positive screens (or the equivalent) | 0 US/Canadian $ |
| Green revolving funds funded from the endowment | 0 US/Canadian $ |
A brief description of the companies, funds, and/or institutions referenced above:
Percentage of the institution's investment pool in positive sustainability investments:
Does the institution have a publicly available sustainable investment policy?:
A copy of the sustainable investment policy:
The sustainable investment policy:
Does the institution use its sustainable investment policy to select and guide investment managers?:
A brief description of how the sustainable investment policy is applied:
Socially responsible investing is an investment strategy that seeks to consider both financial return and how the environmental/social/governance practices of the company impact the good of society. The Board of Trustees acknowledges the importance of understanding the potential risks and value that environmental, social, and governance (“ESG”) factors may have on CSU investments. Therefore, the Board expects that the consideration of ESG factors shall be integrated into the investment decision processes of the CSU.
Has the institution engaged in proxy voting, either by its CIR or other committee or through the use of guidelines, to promote sustainability during the previous three years?:
A copy of the proxy voting guidelines or proxy record:
A brief description of how managers are adhering to proxy voting guidelines:
Has the institution filed or co-filed one or more shareholder resolutions that address sustainability or submitted one or more letters about social or environmental responsibility to a company in which it holds investments during the previous three years?:
Examples of how the institution has engaged with corporations in its portfolio about sustainability issues during the previous three years:
Does the institution participate in a public divestment effort and/or have a publicly available investment policy with negative screens?:
A brief description of the divestment effort or negative screens and how they have been implemented:
Per Chancellor Joseph Castro’s request at the May 2021 Board of Trustees meeting, the IAC, with assistance from staff and the CSU’s investment advisor, Meketa Investment Group, reviewed and analyzed the risks and impacts of fossil fuel related investments in the CSU’s investment portfolios. In conducting its review and analysis, the IAC was guided by its fiduciary obligation to prudently manage CSU investments, as well as the CSU’s commitment to sustainability and environmental responsibility. This review and analysis also included engagement with students and an information agenda item and discussion at the IAC’s August 2021 meeting.
At its October 6, 2021 meeting, the IAC, under delegated authority from the Board of Trustees, approved the following actions concerning fossil fuel related investments in the CSU’s investment portfolios. Under delegated authority from the Board of Trustees, Chancellor Castro agreed to adopt and implement the IAC’s actions.
1. Recommend CSU staff liquidate fossil fuel related bonds in the Liquidity Portfolio as soon as reasonable and restrict future fossil fuel investments for the Liquidity Portfolio and the Intermediate Duration Portfolio (IDP).
2. Transition out of the TRP’s energy mutual fund and re-allocate those funds into other mutual funds within the TRP’s real assets category, specifically real estate, materials, and infrastructure.
3. Due to current legislation that limits the TRP to mutual funds or REITs, which are commingled investment vehicles within which the CSU cannot selectively exclude fossil fuel investments without sacrificing the investment objectives of the CSU, the integrity of the TRP’s asset allocation model, the skill and resources of its investment managers, or the reasonableness of fees, direct staff and the investment advisor to continue working as appropriate and feasible to further reduce fossil fuel exposures in the TRP.
4. Allow all CSU investment managers discretion to continue to invest in those businesses that are successfully transitioning to sustainable green business models.
The remaining amount is all held in commingled mutual funds and is more difficult to reduce due to the inability to control individual stock selection in mutual funds. Significantly reducing this remaining amount further will take years and may require legislation that, among other things, will allow the CSU to invest in a broader array of investment vehicles and that may allow the CSU to further refine, limit, or eliminate the CSU’s exposure to fossil fuel investments without sacrificing the integrity of the CSU’s overall investment objectives.
Approximate percentage of endowment that the divestment effort and/or negative screens apply to:
Does the institution engage in policy advocacy by participating in investor networks and/or engage in inter-organizational collaborations to share best practices?:
A brief description of the investor networks and/or collaborations:
Website URL where information about the institution’s sustainable investment efforts is available:
Additional documentation to support the submission:
Data source(s) and notes about the submission:
For more information about CSU Divestment: https://www.calstate.edu/csu-system/news/Pages/California-State-University-Will-Not-Make-Future-Fossil-Fuel-Investments-in-University-Investment-Portfolios-and-Funds.aspx
CSU Investment Advisory Committee: https://www.calstate.edu/csu-system/administration/business-finance/financing-and-treasury/Pages/Investment-Advisory-Committee.aspx
CSU Annual Investment Report and CSU Master Investment Policy: https://www.calstate.edu/csu-system/administration/business-finance/financing-and-treasury/Annual%20and%20Quarterly%20Investment%20Reports/annual-investment-report-6-30-21.pdf
For more information about CSU Divestment: https://www.calstate.edu/csu-system/news/Pages/California-State-University-Will-Not-Make-Future-Fossil-Fuel-Investments-in-University-Investment-Portfolios-and-Funds.aspx
CSU Investment Advisory Committee: https://www.calstate.edu/csu-system/administration/business-finance/financing-and-treasury/Pages/Investment-Advisory-Committee.aspx
CSU Annual Investment Report and CSU Master Investment Policy: https://www.calstate.edu/csu-system/administration/business-finance/financing-and-treasury/Annual%20and%20Quarterly%20Investment%20Reports/annual-investment-report-6-30-21.pdf
The information presented here is self-reported. While AASHE staff review portions of all STARS reports and institutions are welcome to seek additional forms of review, the data in STARS reports are not verified by AASHE. If you believe any of this information is erroneous or inconsistent with credit criteria, please review the process for inquiring about the information reported by an institution or simply email your inquiry to stars@aashe.org.