Goshen College
PA-14: Sustainable Investment

Note that ALL investments in the endowment portfolio are screened, and there is a wide variety of sustainable industries, such as renewable energy, represented in the dynamic portfolio at any given point in time. Funds are invested with individual managers OR mutual funds that we require to actively invest according to both our positive and negative screening values. We do not break out the categories in the same way as those requested above, so it is virtually impossible to come up with numbers in the requested categories. Conservative estimates are used for this purpose. Our SRI screening process uses both positive and negative screens to determine which investments are appropriate.

We contract with Everence to provide socially responsible investing oversight to our portfolio within the context of their core values and guidelines. Therefore we have adopted their criteria reads, "The natural environment is a finite resource, the inheritance of future generations and a gift from God. We expect companies to respect the limits of our natural resources and to work toward environmental sustainability. Companies should "reduce, reuse, and recycle," pursue cleaner and more efficient production methods and bear a deep concern for the welfare of animals, minimizing animal testing, wherever possible. We value a company's involvement in the environmental technology and services arena. We expect companies to engage in honest, transparent environmental reporting, to support respected environmental principles and to publicly promote the value of the environment."

All of the managers selected to manage parts of our fund are first looked at through the lens of this policy. We also develop what we call screen benchmarks that we expect them to try to beat. Everence helps the managers put together the screen benchmark.

Abortion: Restrict companies that: -are engaged in the development or manufacture of abortifacients. -are verified providers of abortions. Adult entertainment: Restrict companies that: -produce adult media products including movies, magazines, books, calendars and websites. -own and/or operate adult entertainment establishments. -derive significant revenues from the rental, sale or distribution of adult entertainment media products. Alcohol: Restrict companies that: -derive material revenues from the manufacture of alcoholic beverages. -derive significant revenues from the supply of raw materials necessary for the production of alcohol. -derive significant revenues from the distribution of alcoholic beverages. Firearms: Restrict companies that: -produce small arms ammunition or firearms. -derive significant revenues from the wholesale or retain distribution of firearms and small arms ammunition. Gambling: Restrict companies that: -derive material revenues from the production of goods used exclusively for gambling. -derive material revenues from ownership and/or operation of betting establishments. -derive material revenues from gambling support services. Nuclear Power: Restrict companies that: -have an ownership interest in a nuclear power plant and derive a significant amount of electricity from nuclear sources. Predatory lending: Restrict companies that: -derive significant revenue from direct or indirect predatory lending practices. Tobacco: Restrict companies that: -produce tobacco products including cigarettes, cigars, pipe tobacco and smokeless tobacco products. -derive significant total revenues from the production and supply of raw materials and other products necessary for the production of tobacco products. -derive significant revenues from the wholesale or retain distribution of tobacco products. Weapons production and support systems: Restrict companies that: -produce nuclear or conventional weapons or weapons systems. -produce customized components for nuclear or conventional weapons or weapons systems. -derive material revenue from the provision of weapons support systems and services. Human rights: Restrict companies that receive the lowest human rights performance ratings across several indicators including those that: -have been implicated in the violation of human rights, including the rights of indigenous peoples. -have significant operations in Burma, Sudan or other countries with oppressive regimes. -are involved directly, or involved through major suppliers, in the use of child, forced or sweatshop labor. Environment: Restrict companies that receive the lowest environmental performance ratings across a number of indicators including: -environmental management and reporting systems. -compliance records in regard to environmental laws. -methods of use/extraction of natural resources. -emissions levels. -impact on natural ecosystems. -measures to reduce the environmental impact of operations. -impact of products on the environment.

Everence works directly with the mangers to ensure that they are following the guidelines regarding environmentally or socially sensitive issues, and voting with proxies according to those guidelines. Everence periodically audits the managers to ensure they are staying within the guidelines.

Hydraulic fracturing is an unconventional method of natural gas extraction in which large quantities of water, along with smaller amounts of sand and chemicals, are injected deep underground to unlock pockets of gas trapped in rock formations. With many Everence clients and constituents living in areas both impacted and enriched by fracturing activity, Everence is focusing attention on the hydraulic fracturing industry. Everence believes transparency, comprehensive safety practices and principled treatment of the land are best for companies, landowners and communities. For over three years, Everence has requested increased disclosure about environmental and financial risks from hydraulic fracturing companies, as well as the adoption of best management practices that go beyond current regulatory requirements. Adopting these policies helps investors better understand their company, and helps companies address the three major risks inherent in hydraulic fracturing operations: reputation, license-to-operate and litigation. Everence will continue to co-file resolutions and participate in dialogue with hydraulic fracturing companies on these concerns.

Everence is involved with: US SIF (www.usssif.org) , ICCR (www.iccr.org), ceres (www.ceres.org), Carbon Disclosure Project (www.cdp.org), Investor Network on Climate Risk, (www.incr.org) and others.