Overall Rating Gold
Overall Score 76.05
Liaison Jack Byrne
Submission Date March 4, 2022

STARS v2.2

Middlebury College
PA-10: Sustainable Investment

Status Score Responsible Party
Complete 3.85 / 5.00 Jack Byrne
Director of Sustainability Integration
Environmental Affair
"---" indicates that no data was submitted for this field

Part 1. Positive sustainability investment

Total value of the investment pool:
1,326,543,209 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) 214,900,000 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 funds funded from the endowment 0 US/Canadian $

If any of the above is greater than zero, provide:

A brief description of the companies, funds, and/or institutions referenced above:
In April 2010, the College established the “Sustainable Investments Initiative” to which donors concerned about sustainability within the endowment could contribute. Funds contributed are invested in investment vehicles that meet the College’s criteria for being sustainable. Possible options are socially responsible mutual funds, venture capital funds focused on alternative energy, or investments with an asset manager that agrees to include sustainability criteria into their investment screening process.

Percentage of the institution's investment pool in positive sustainability investments:
16.20

Part 2. Investor engagement

Sustainable investment policy 

Does the institution have a publicly available sustainable investment policy?:
Yes

None
A copy of the sustainable investment policy:
---

None
The sustainable investment policy:
2013 Statement on divestment and sustainable investing:

https://www.middlebury.edu/announcements/2013/08/middlebury-college-statement-divestment

Prior to its 2019 policy to divest, in 2013, the College undertook three directions regarding sustainable investing:

First, the Investment Committee of the board, including its student members, developed a set of stronger ESG (Environment, Social, and Governance) principles that we can apply to our investment portfolio, both to identify those companies and managers who invest with certain principles in mind and those who consistently do not. As part of this effort, we intensified our ongoing review of the College’s investment portfolio.

Second, we created ESG guidelines to help monitor investments and operations at our own campus in Vermont. We issue periodic reports on our performance.

And third, we increased significantly the amount of the endowment directed toward ESG investments, including those focused on clean energy, green building projects, and other efforts to reduce greenhouse gas emissions and benefit the environment. We continue to announce more specifics about this.

None
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:
Since 2013, Middlebury has worked closely with our current investment managers over the years to create sustainable investment options, to develop proxy voting guidelines, and to implement to divestment policies set by the trustees.

We report on the portion of the endowment in sustainability related investments annually as part of our Energy2028 updates, for example: https://www.middlebury.edu/office/energy2028/news-and-highlights/energy2028-update


In 2019 We also adopted a divestment policy to rid the endowment of any fossil fuel related investments by 2034. Currently, the endowment has 2.7% of its investments in fossil fuel related exposure and, or that, 0.2% in the Dirty 100. We receive quarterly reports on the sustainable investing, fossil fuel divesting, and ESG practices related to endowment investing.
More recently our investment firm has begun surveying its fund managers and has found (as of 2021) that 55% of the managers who invest Middlebury's endowment have ESG policies.

Proxy voting 

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

None
A copy of the proxy voting guidelines or proxy record:
proxy_voting_priciples-1.pdf

None
A brief description of how managers are adhering to proxy voting guidelines:
Recently no proxy voting has taken place mainly because the College currently owns virtually zero individual securities. In previous years, the College's investment managers have voted on proxies for about $25 million of the sustainable investment fund according to Middlebury's guidelines. More

Shareholder resolutions 

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:
No recent examples, however, in 2016 the Student Investment Committee worked with the Advisory Committee for Socially Responsible Investing to co-file a shareholder resolution (along with a letter) with Exxon-Mobil, a stock held in the account managed by the SIC. The resolution sought to have Exxon-Mobil produce a report about the short and long term risks of Exxon Mobil’s use of hydraulic fracturing in natural gas drilling (“fracking”).

Divestment efforts and negative screens

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:
The Middlebury Board of Trustees committed to divesting Middlebury's investments from fossil-fuel related funds on a graduated scale: 25% in 5 years, 50% in 8 years and 100% within 15 years.

https://www.middlebury.edu/office/energy2028#investments

Approximate percentage of endowment that the divestment effort and/or negative screens apply to:
100

Investor networks 

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

None
A brief description of the investor networks and/or collaborations:
Middlebury's endowment is pooled with 11 other institutions including Barnard, Carnegie Endowment for International Peace, The Edna McConnell Clark Foundation, Colonial Williamsburg, The Commonwealth Fund, Dickinson College, Houston Endowment, Henry Luce Foundation, Smith College, Trinity College, and The University of Tulsa. Middlebury College and several other members of this group have played a leadership role in establishing a sustainable investing alternative to the options offered by the investment managers. Middlebury's effort to find a way for individual members to divest from fossil fuels has made it easier for other members to do so as well. Shortly after Middlebury made its divestment commitment, Smith College followed with its own similar commitment.

Optional Fields 

Website URL where information about the institution’s sustainable investment efforts is available:
https://www.middlebury.edu/office/finance-and-administration/investment-and-treasury-operations/endowment/managing-endowment

Additional documentation to support the submission:
---

Data source(s) and notes about the submission:
Another link re sustainable investing:
https://www.middlebury.edu/office/energy2028/divesting-fossil-fuels#divesting-from-fossil-fuels-and-investing-in-sustainability

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