Overall Rating Silver
Overall Score 58.54
Liaison Kevin Miller
Submission Date March 6, 2020

STARS v2.2

Goshen College
PA-10: Sustainable Investment

Status Score Responsible Party
Complete 3.00 / 3.00 Caleb Longenecker Fox
Institutional Advancement
Development
"---" indicates that no data was submitted for this field

Total value of the investment pool:
83,322,531 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) 29,079,563.30 US/Canadian $
Green revolving funds funded from the endowment 0 US/Canadian $

A brief description of the companies, funds, and/or institutions referenced above:

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 our SRI values, which include: choosing alternative energy investments; investing in green bonds; and green-oriented community investments. We do not break out the categories in the same way as those listed above, so it is virtually impossible to come up with numbers in the requested categories. Conservative estimates are used for this purpose.

In those areas of the market where possible, the Investment Committee seeks to engage managers whose security selection and investment style aligns closely with the values of stewardship investing endorsed by the MEA Investment Committee. The MEA Investment Committee recognizes the importance of holding a diverse portfolio that invests in many market segments. In some areas, complete alignment is unlikely or impossible to attain. The committee will continue to seek opportunities that reflect its values, but recognizes that it will not be able to do so in all cases. Therefore while we cannot represent that 100% of the holdings align with our values, the Committee is committed to become more proactive going forward in seeking out investments that are sustainable and impactful.


Percentage of the institution's investment pool in positive sustainability investments:
34.90

Does the institution have a publicly available sustainable investment policy?:
No

A copy of the sustainable investment policy:
The sustainable investment policy:

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 which 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."


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:

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.


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?:
Yes

A copy of the proxy voting guidelines or proxy record:
A brief description of how managers are adhering to proxy voting guidelines:

Everence works directly with fund managers 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.


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?:
Yes

Examples of how the institution has engaged with corporations in its portfolio about sustainability issues during the previous three years:

In 2018, Everence Financial submitted 476 environmental and social (E&S) shareholder resolutions.Of those filed, 224 were withdrawn, 176 remained on the ballot, while others were omitted via challenges at the SEC or were still pending.

One of the key trends of the 2018 proxy season was a significant spike in the number of E&S proposals withdrawn by proponents, and the resulting drop in the number of E&S proposals that went to a shareholder vote. This indicates that more proponents were successful in their engagements and achieving company commitments.

Everence submitted a total of 91 climate-related resolutions up slightly from 89 in 2017. Of those, four climate-related proposals received majority support.

Political spending, gender/ethnicity pay equity, and workplace and board diversity continued to be some of the top E&S issues for Everence shareholder proposals.


Does the institution participate in a public divestment effort and/or have a publicly available investment policy with negative screens?:
Yes

A brief description of the divestment effort or negative screens and how they have been implemented:

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.


Approximate percentage of endowment that the divestment effort and/or negative screens apply to:
90

Does the institution engage in policy advocacy by participating in investor networks and/or engage in inter-organizational collaborations to share best practices?:
Yes

A brief description of the investor networks and/or collaborations:

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.


Website URL where information about the institution’s sustainable investment efforts is available:
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Additional documentation to support the submission:
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