| Overall Rating | Gold |
|---|---|
| Overall Score | 75.28 |
| Liaison | Kara Holmstrom |
| Submission Date | Feb. 25, 2022 |
Luther College
PA-10: Sustainable Investment
| Status | Score | Responsible Party |
|---|---|---|
|
0.47 / 3.00 |
Peggy
Lensing Controller OFS |
"---"
indicates that no data was submitted for this field
Part 1. Positive sustainability investment
207,148,000
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) | 1,162,800 US/Canadian $ |
| Community development financial institutions (CDFIs) or the equivalent | 0 US/Canadian $ |
| Socially responsible mutual funds with positive screens (or the equivalent) | 8,014,000 US/Canadian $ |
| Green revolving funds funded from the endowment | 0 US/Canadian $ |
If any of the above is greater than zero, provide:
Luther College has hired Mercer Investments to incorporate environmental, social and governance (ESG) considerations into its investment approach. Investment goals are selected that consider both financial return and social/environmental good to bring about positive social change. Portfolio management decisions will continue to be made with the long-term return and support of the college as a primary objective.
As of 1/10/22, Luther College has $1,682,800 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 PRE because we chose to also include the value of our Climate Action Fund in this credit.
As of 1/10/22, Luther College has $1,682,800 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 PRE because we chose to also include the value of our Climate Action Fund in this credit.
Percentage of the institution's investment pool in positive sustainability investments:
4.43
Part 2. Investor engagement
Sustainable investment policy
Yes
None
A copy of the sustainable investment policy:
None
The sustainable investment policy:
The Luther College "Investment Policy and Objectives Statement," approved in 2021 (included in the attached Investment Policy Statement), has special sections (highlighted) devoted to socially responsible investment. Luther also prepared a statement prepared that indicates that we do have socially responsible investment options for donors who are concerned about how their specific funds will be invested.
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.
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.
None
Does the institution use its sustainable investment policy to select and guide investment managers?:
No
A brief description of how the sustainable investment policy is applied:
Luther College's endowment is managed by Mercer Investments.
The Responsible Investment Committee serves in an advisory role to the Luther administration and to the Investment Committee of the Board of Regents. Specifically, the committee is charged to:
-Promote transparency by acting as a liaison between the Luther College community and the Investment Committee.
- Meet annually with representatives of the Investment Committee to discuss Luther’s investment philosophy, diversification strategies, fund performance, and environmental, social, and governance (ESG) investment practices.
- Provide input and share policies, practices, and goals of other higher education institutions regarding responsible investing, including the local benefits of sustainable investments.
The Responsible Investment Committee serves in an advisory role to the Luther administration and to the Investment Committee of the Board of Regents. Specifically, the committee is charged to:
-Promote transparency by acting as a liaison between the Luther College community and the Investment Committee.
- Meet annually with representatives of the Investment Committee to discuss Luther’s investment philosophy, diversification strategies, fund performance, and environmental, social, and governance (ESG) investment practices.
- Provide input and share policies, practices, and goals of other higher education institutions regarding responsible investing, including the local benefits of sustainable investments.
Proxy voting
No
None
A copy of the proxy voting guidelines or proxy record:
---
None
A brief description of how managers are adhering to proxy voting guidelines:
---
Shareholder resolutions
No
Examples of how the institution has engaged with corporations in its portfolio about sustainability issues during the previous three years:
---
Divestment efforts and negative screens
No
A brief description of the divestment effort or negative screens and how they have been implemented:
---
Approximate percentage of endowment that the divestment effort and/or negative screens apply to:
---
Investor networks
No
None
A brief description of the investor networks and/or collaborations:
---
Optional Fields
---
Additional documentation to support the submission:
Data source(s) and notes about the submission:
Luther currently has $1,162,800 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.
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.