|Submission Date||March 1, 2019|
PA-9: Sustainable Investment
|0.04 / 4.00||
Does the institution wish to pursue Option 1 (positive sustainability investment)?:
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)||16,000 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)||1,020,400 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 loan funds that are funded from the endowment||0 US/Canadian $|
A brief description of the companies, funds, and/or institutions referenced above:
Mercer is the group responsible for managing Luther College's investments. They reported that of the $500,000 + dollars we have invested through them, 0.3%, or approximately $16,000, is invested in sustainable industries in the following ways:
$5,333 is managed by Park Street Natural Resources II and invested in a renewable energy fund. $10,667 is from Park Street Natural Resource III, which is invested in a fund called Ecosystem Investment Partners. The description from Ecosystem Investment Partners’ website is as follows, “Ecosystem Investment Partners is a unique private investment manager that delivers the highest quality ecological restoration and conservation projects across the U.S. Through our investment funds, we acquire, restore and permanently protect priority conservation properties, and sell the mitigation credits we generate to customers who must offset their unavoidable environmental impacts.”
As of March 1, 2019, Luther College has $1,020,400 in a Climate Action Fund. The purpose of the Climate Action Fund is to provide necessary financial resources for Luther to achieve the goals in its Climate Action Plan, especially Luther's emission reduction targets adopted by the Board of Regents in 2012. (See attached for Climate Action Fund Spending Policy).
Total value of investment pool for this credit differs from the amount reported for our endowment in IC-2 because we chose to include the value of our Climate Action Fund in this credit. These are non-endowment dollars.
Percentage of the institution's investment pool in positive sustainability investments:
Does the institution wish to pursue Option 2 (investor engagement)?:
Does the institution have a publicly available sustainable investment policy?:
A copy of the sustainable investment policy:
The sustainable investment policy:
Luther College Social Responsibility Statement
The College's investment objective is to provide sufficient financial resources to sustain a prudent spending policy in support of scholarships, professorships, teaching, research and other purposes, while preserving the real value of the Endowment. To accomplish the objective, the Endowment must be invested and earn a rate of return, over the long-term, that exceeds inflation, a prudent spending amount, and investment management fees and related expenses.
The Endowment typically invests through the use of commingled pools to reduce management fees and transaction costs, increase diversification, and to allow the manager to vote proxies in the best interest of the investors. Commingled pool investors are unable to customize the investment selection process since funds are invested in the manner provided by the investment manager. For donors with responsibility concerns, the College provides socially responsible investment options that they may select or designate.
This statement was approved by the Board of Regents in 2016.
Does the institution use its sustainable investment policy to select and guide investment managers?:
A brief description of how the policy is applied, including recent examples:
Luther College's endowment is managed by Mercer. Mercer's Environmental, Social, and Corporate Governance (ESG) statement for their managers can be found here: file:///C:/Users/cainto01/Downloads/An-investment-framework-for-sustainable-growth.pdf
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 have a publicly available investment policy with negative screens?:
A brief description of the negative screens and how they have been implemented:
Approximate percentage of the endowment that the 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:
The website URL where information about the programs or initiatives is available:
Additional documentation to support the submission:
Luther currently has $1,020,400 in a Climate Action Fund. The purpose of the Climate Action Fund is to provide necessary financial resources for Luther to achieve the goals in its Climate Action Plan, especially Luther's emission reduction targets adopted by the Board of Regents in 2012. (See attached for Climate Action Fund Spending Policy).
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 and complete the Data Inquiry Form.