McGill University
PA-8: Committee on Investor Responsibility

The Board of Governors has an Investment Committee composed of community representatives and members of the Board and a Committee to Advise on Matters of Social Responsibility (CAMSR), details of which are noted below. Mandate of the Committee to Advise on Matters of Social Responsibility - CAMSR advises the Board on matters concerning social responsibility related to University investments within the mandate of the Investment Committee of the Board Social Responsibility and Investment Policy Matters Without limiting the generality of the foregoing mandate, the Committee: - Shall report to the Board within a reasonable time frame following each meeting and may make recommendations in writing, with appropriate supporting evidence and documentation, concerning the following: i. proposed revisions to existing policy, guidelines and practices concerning endowment investments; ii. follow-up with a company concerning a matter which was the subject of the Committee’s review or study, including proposed changes in corporate practice; iii. support for shareholder resolutions recommending changes in a company’s management practice; iv. proposed alternate actions, other than divestment of holdings, as deemed appropriate by the Committee. - May undertake studies of socially responsible investment policies and best practices; - May review information, data, analysis, reports and publications touching on issues of social responsibility; - May seek input and feedback from the University community as deemed appropriate. Expressions of Concern, Submissions and Consideration Without limiting the generality of the foregoing mandate, the Committee also: Shall consider, report on and make recommendations to the Board with respect to written expressions of concern from the University community about matters of social responsibility related to University investments falling within the mandate of the Investment Committee of the Board, in accordance with the following provisions.

Composition of Committee 1. The Committee shall consist of six members, excluding the ex officio members, comprised as follows: 1. one member of the Board's Investment Committee; 2. one Board member from among the Academic Staff Members or the Senate Members; 3. one Board member from among the Administrative and Support Staff Members; 4. one Student Member; 5. up to two members selected from among the following: At-Large members or Alumni Association Members of the Board, Governors Emeriti or Honorary Governors; 6. One member of the Committee may be from the general public. 2. The Principal, Vice-Chancellor, and Chair of the Board of Governors shall serve as ex officio members of the Committee. 3. The Chair of the Committee shall be selected from among the At-Large Members, Alumni Association Members, Governors Emeriti or Honorary Governors serving on the Committee. 4. The Secretary-General or her/his delegate shall serve as Secretary to the Committee.

The Committee reviewed a submission it received from Divest McGill regarding fossil fuel divestment in February 2015. It has also commissioned a study of socially responsible investment practices (spring 2015). The Committee has reviewed its terms of reference and proposed revisions which were approved by the Board in 2014. The revisions included expanding the definition of social injury to include grave, injurious impact, which the activities of a company are found to have on the natural environment. The Committee has also considered a submission pertaining to fossil fuel divestment, in which the following response was given: "CAMSR proposes that the Board ask the Investment Committee, while exercising its fiduciary duty, to consider and report back on by December 2016, measures such as set out below. - Establishing a socially responsible investment fund option for donors interested in such an option - similar to the fund established for pension investments - Looking at opportunities for, and supporting, sound investments in alternative (renewable) energy firms, alternative technology development and commercialization - Developing ESG principles and guidelines for endowment investments - Asking investment managers to report annually on ESG and UNPRI implementation and compliance, which will in turn be reported to the Board - Supporting and initiating shareholder resolutions to encourage changes in company practices deemed inconsistent with ESG and UNPRI CAMSR also proposes that the Board ask the University administration to provide it by the May 2016 meeting with a preliminary overview of all current sustainability and climate-related activities. This overview would form the basis for the Board and senior administration to work collaboratively on further integrating and expanding initiatives, consistent with the McGill mission, to create a comprehensive climate action plan. CAMSR also proposes that the Board ask the University administration to report annually to the Board on all sustainability and climate initiatives. Such initiatives would encompass, but not be limited to: - Sustainability research and education across all fields of study, efforts to advance understanding of climate change and promote innovative mitigation and adaptation solutions - Ongoing implementation of Vision 2020 and the development of a further sustainability strategic plan and action plan for 2017-2020 - Projects to quantify and reduce McGill’s own carbon footprint that set measurable goals and contain indicators of performance and progress." Source/Link to full report: https://www.mcgill.ca/boardofgovernors/files/boardofgovernors/gd15-44_camsr_report_0.pdf