| Overall Rating | Gold |
|---|---|
| Overall Score | 67.08 |
| Liaison | Philip Mansfield |
| Submission Date | March 4, 2022 |
Carleton University
PA-10: Sustainable Investment
| Status | Score | Responsible Party |
|---|---|---|
|
1.50 / 3.00 |
Philip
Mansfield Sustainability Manager Facilities Management and Planning |
"---"
indicates that no data was submitted for this field
Part 1. Positive sustainability investment
2,200,000
US/Canadian $
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 $ |
If any of the above is greater than zero, provide:
The value of holdings in the categories included is unknown.
Percentage of the institution's investment pool in positive sustainability investments:
0
Part 2. Investor engagement
Sustainable investment policy
Yes
None
A copy of the sustainable investment policy:
None
The sustainable investment policy:
---
None
Does the institution use its sustainable investment policy to select and guide investment managers?:
Yes
A brief description of how the sustainable investment policy is applied:
As above.
Proxy voting
Yes
None
A copy of the proxy voting guidelines or proxy record:
None
A brief description of how managers are adhering to proxy voting guidelines:
Section 9 – Delegation of Voting Rights
9.1 The Committee delegates to the Managers the responsibility of exercising all voting rights acquired through the Fund. The Managers shall exercise such voting rights with the intent of fulfilling the investment objectives and policies of the Statement and for the long-term benefit of the Fund.
9.2 The Managers shall provide their voting rights policies to the Committee. Each Manager shall prepare an annual report to the Committee outlining and explaining any departures from, or exceptions to, the policies, any issues where the Manager has voted against corporate management, and any other extraordinary matters.
9.3 The Committee retains the right to exercise acquired voting rights at any time by notifying the Managers.
9.1 The Committee delegates to the Managers the responsibility of exercising all voting rights acquired through the Fund. The Managers shall exercise such voting rights with the intent of fulfilling the investment objectives and policies of the Statement and for the long-term benefit of the Fund.
9.2 The Managers shall provide their voting rights policies to the Committee. Each Manager shall prepare an annual report to the Committee outlining and explaining any departures from, or exceptions to, the policies, any issues where the Manager has voted against corporate management, and any other extraordinary matters.
9.3 The Committee retains the right to exercise acquired voting rights at any time by notifying the Managers.
Shareholder resolutions
Yes
Examples of how the institution has engaged with corporations in its portfolio about sustainability issues during the previous three years:
Ten companies were engaged; six were focused on GHG emissions and 4 focused on sustainable finance. Engagement included letters to management and Board members, as well as meetings with senior management.
Example 1: A meeting was held with ‘Investment A’ to discuss current engagement priorities related to climate finance. The company provided an update on its work related to its climate-related strategy and enhanced disclosures. Investor expectations were outlined to guide ‘Investment A’ to make net-zero commitments with accompanying targets, using standardized measurements and disclosures (including PCAF (Partnership for Carbon Accounting Financials)). The subject of ‘Investment A’s’ proxy voting record on climate-related proposals was discussed as it presented concerns.
Example 2: A meeting was held with ‘Investment B’ to discuss the company's progress on its climate management program. Particularly, with an interest in understanding the details surrounding the company’s recently announced absolute emissions targets, as well as how it intended to refine its executive compensation structure to align with climate-specific goals. It is recognized that ‘Investment B’s’ progress on emissions reduction targets is among the best in its peer group, however the meeting also included some aspects such as emissions offsets and avoided emissions that gave pause as to whether it was in fact a science-based target. The engagement sought to guide ‘Investment B’ further with its need for robust long-term and short-term compensation targets that directly relate to climate and emissions, and pushed the company to improve its reporting on scope 3 emissions.
Example 1: A meeting was held with ‘Investment A’ to discuss current engagement priorities related to climate finance. The company provided an update on its work related to its climate-related strategy and enhanced disclosures. Investor expectations were outlined to guide ‘Investment A’ to make net-zero commitments with accompanying targets, using standardized measurements and disclosures (including PCAF (Partnership for Carbon Accounting Financials)). The subject of ‘Investment A’s’ proxy voting record on climate-related proposals was discussed as it presented concerns.
Example 2: A meeting was held with ‘Investment B’ to discuss the company's progress on its climate management program. Particularly, with an interest in understanding the details surrounding the company’s recently announced absolute emissions targets, as well as how it intended to refine its executive compensation structure to align with climate-specific goals. It is recognized that ‘Investment B’s’ progress on emissions reduction targets is among the best in its peer group, however the meeting also included some aspects such as emissions offsets and avoided emissions that gave pause as to whether it was in fact a science-based target. The engagement sought to guide ‘Investment B’ further with its need for robust long-term and short-term compensation targets that directly relate to climate and emissions, and pushed the company to improve its reporting on scope 3 emissions.
Divestment efforts and negative screens
Yes
A brief description of the divestment effort or negative screens and how they have been implemented:
It is recognized that climate change is one of the ESG factors with the most significant potential to impact the value of investments across all sectors, through risks and opportunities associated with both the physical impacts of climate change and the transition to a low-carbon economy. The University believes that climate-related risks can be mitigated by adopting a portfolio decarbonization strategy, including the following elements:
• Measuring and disclosing portfolio carbon emissions.
• Setting targets for reducing portfolio carbon emissions aligned with global climate goals,
including the achievement of net-zero greenhouse gas (GHG) emissions by 2050, and consistent with the University’s investment responsibility. Progress on portfolio carbon emissions reduction and the impact of targets on investment performance will be assessed annually, and targets will be reviewed at least once every five years.
• Engaging with investment counsel on climate investment strategy and portfolio carbon emissions.
• Requiring investment counsel to undertake stewardship with investees on climate change-related matters.
• Encouraging investment counsel to publicly support the Paris Agreement climate goals and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).2
• Implementing the Board of Governors' resolutions relating to climate change.
Given the importance of climate change to society, the University, supported by the Board of
Governors, commits to taking the following actions:
• Adoption of a strategy, called decarbonization, of divestment and active ownership to transition the Endowment Fund to a significantly lower carbon portfolio by 2030.
• An immediate first step is to include a commitment not to hold any direct fossil fuel investments.
• The longer-term strategy for indirect investments and pooled funds is to be based in the important principle that climate change must be addressed across all sectors of the economy and not be limited to fossil fuel investments.
• Establishment of a fossil-fuel free fund, to be in place by the end of 2022, to which donors may direct their gifts.
• Measuring and disclosing portfolio carbon emissions.
• Setting targets for reducing portfolio carbon emissions aligned with global climate goals,
including the achievement of net-zero greenhouse gas (GHG) emissions by 2050, and consistent with the University’s investment responsibility. Progress on portfolio carbon emissions reduction and the impact of targets on investment performance will be assessed annually, and targets will be reviewed at least once every five years.
• Engaging with investment counsel on climate investment strategy and portfolio carbon emissions.
• Requiring investment counsel to undertake stewardship with investees on climate change-related matters.
• Encouraging investment counsel to publicly support the Paris Agreement climate goals and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).2
• Implementing the Board of Governors' resolutions relating to climate change.
Given the importance of climate change to society, the University, supported by the Board of
Governors, commits to taking the following actions:
• Adoption of a strategy, called decarbonization, of divestment and active ownership to transition the Endowment Fund to a significantly lower carbon portfolio by 2030.
• An immediate first step is to include a commitment not to hold any direct fossil fuel investments.
• The longer-term strategy for indirect investments and pooled funds is to be based in the important principle that climate change must be addressed across all sectors of the economy and not be limited to fossil fuel investments.
• Establishment of a fossil-fuel free fund, to be in place by the end of 2022, to which donors may direct their gifts.
Approximate percentage of endowment that the divestment effort and/or negative screens apply to:
100
Investor networks
Yes
None
A brief description of the investor networks and/or collaborations:
Shareholder Association for Research & Education (SHARE / University Network for Investor Engagement (UNIE) UNIE is a corporate engagement program for university endowments and pension plans, leveraging their power as institutional investors to meaningfully address climate change-related risks.
In partnership with SHARE, UNIE engages companies in the investment portfolios of participating universities. Our engagements focus on accelerating the transition to a low-carbon economy in key sectors where advocacy can make the biggest difference, including energy, utilities, finance, transportation and manufacturing.
PRI – United Nations supported Principles for Responsible Investing signatory
In partnership with SHARE, UNIE engages companies in the investment portfolios of participating universities. Our engagements focus on accelerating the transition to a low-carbon economy in key sectors where advocacy can make the biggest difference, including energy, utilities, finance, transportation and manufacturing.
PRI – United Nations supported Principles for Responsible Investing signatory
Optional Fields
Additional documentation to support the submission:
---
Data source(s) and notes about the submission:
Angela Winder
Pensions Fund Administrator
Carleton University
Pensions Fund Administrator
Carleton University
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.