Chatham University
PA-9: Sustainable Investment

Chatham University utilizes: Dimensional DFA US Sustainability Core 1 Portfolio, which uses stocks with high sustainability ratings. Companies are judged on climate change, environmental vulnerability, and environmental strength variables. Mellon Carbon Efficiency that targets companies with lower carbon footprint than their industry average, as determined by CSR reports. Blackrock Global Renewable Power Fund, that invests in renewable power projects worldwide.

Guiding Principles The following guiding principles are derived from Chatham’s sustainability mission and are to be used as a compass for assessing sustainable investments. These principles reflect the three pillars of sustainability - planet, people and prosperity – as a guide for investing. 1. Reduce fossil fuel investments, since fossil fuels are the main contributors to anthropogenic greenhouse gas emissions 2. Favor and assess investments that have a positive impact on the environment, particularly those that work to alleviate pollution and combat climate change. 3. Favor and assess investments that promote positive sustainability – businesses that exhibit exemplary social and environmental standards and performance. 4. Favor and assess community development investments other investments that promote sustainable local growth. 5. Advocate against corporations that deny climate change.

We have just transitioned to a CIO, as of October 2018, and they were provided with the Guiding Principles for investing. They will be meeting with the Sustainable Investment Advisory Board over the next quarter as we complete the transition.

A copy of the 1st Q 2017 is attached, with climate-related proxy record. Detailed records are available for the year, we can only post one here.

Dimensional considers the impact that companies may have on the environment and other sustainability issues when making investment decisions for its sustainability portfolios. In these portfolios, Dimensional may evaluate carbon and other greenhouse emissions (or potential emissions), land use, cluster munitions manufacturing, biodiversity, involvement in toxic spills or releases, operational waste, water use, tobacco, child labor and factory farming activities. When evaluating companies for sustainability, Dimensional may refer to various sources, including but not limited to, third party screens, company filings, financial statements, NGO lists and existing proxy proposals. Regarding child labor, Dimensional has engaged MSCI ESG Research to identify companies that have had recent controversies related to child labor. MSCI is recognized as an expert in the industry for its ESG screening practices. Factors impacting the evaluation of companies may include, but are not limited to, a history of involvement in child labor-related legal cases, widespread or egregious instances of child labor in the firm’s supply chain, resistance to improved practices, and criticism by NGOs and/or other third-party observers. The screen for factory farming is performed internally by Dimensional using multiple data sources. This detailed review of each company attempts to identify companies believed to be using particularly intensive methods of livestock rearing. The US Sustainability Core 1 fund seeks to exclude companies that have had controversies related to child labor as determined by MSCI ESG Research or have involvement in factory farming as determined by Dimensional. The child labor and factory farming screens are designed to meet the social investing needs of shareholders.

Sustainable Endowments Network