Montana State University
PA-10: Sustainable Investment
| Status | Score | Responsible Party |
|---|---|---|
|
0.75 / 3.00 |
Paul
Edlund Project Coordinator Office of Sustainability |
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) | 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) | 0 US/Canadian $ |
| Green revolving funds funded from the endowment | 0 US/Canadian $ |
A brief description of the companies, funds, and/or institutions referenced above:
Percentage of the institution's investment pool in positive sustainability investments:
Does the institution have a publicly available sustainable investment policy?:
A copy of the sustainable investment policy:
The sustainable investment policy:
The Committee will take into consideration ESG factors when evaluating new investment managers. ESG factors are broad and include, but are not limited to, environmental issues like natural resources and carbon exposure, social issues like diversity, equity, and inclusion and governance issues like executive leadership of a company and shareholder rights. As it relates to environmental factors, and where consistent with the risk and return objectives set out in this Policy [sections 3.1- 3.4], the Committee shall consider how best to align the investment portfolio to MSU’s sustainability goals, including seeking to attain the STARS Platinum rating by 2035, which is the sustainability rating system provided by the Association for the Advancement of Sustainability in Higher Education.
Recognizing the potential financial risks from climate change the Committee will consider efficient ways to reduce investment exposure to greenhouse gas emissions by 2040. With research and advice from its Consultant, the Committee’s approach will involve:
➢ monitoring portfolio exposure to ESG risks, including climate change
➢ taking into consideration ESG policies and procedures when evaluating new, and monitoring existing, investment managers; and
➢ considering lower carbon investments that meet the risk-return objectives.
Currently, the MSU Alumni Foundation does not invest in individual securities, but rather invests with a roster of investment managers to achieve the MSU Alumni Foundation’s desired asset allocation and diversification targets. Each investment manager has full discretion in security selection, including the extent to which the manager chooses to incorporate ESG factors in its investment process and security selection. The Committee’s approach does not involve excluding certain industries or companies [which may jeopardize our return seeking objectives].The Committee monitors the ESG policies of investment managers with the assistance of the Consultant. As changes to the roster of investment managers are made, the Committee will consider replacements that provide more leadership, experience and capabilities in managing ESG factors within their respective investment strategy.
Does the institution use its sustainable investment policy to select and guide investment managers?:
A brief description of how the sustainable investment policy is applied:
➢monitoring portfolio exposure to ESG risks, including climate change
➢taking into consideration ESG policies and procedures when evaluating new, and monitoring existing, investment managers
➢considering lower carbon investments that meet the risk-return objectives.
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 participate in a public divestment effort and/or have a publicly available investment policy with negative screens?:
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:
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:
Wilshire is a signatory of the Principles for Responsible Investment (PRI). The PRI is the world’s leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance (ESG) factors; to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories; of the financial markets and economies in which they operate; and ultimately of the environment and society as a whole. Source and more info can be found here: https://www.unpri.org/about-us/about-the-pri
Website URL where information about the institution’s sustainable investment efforts is available:
Additional documentation to support the submission:
Data source(s) and notes about the submission:
Because the investments held by the MSU Alumni Foundation are managed by third-party investors, we are currently unable to determine the value of existing sustainability-certified investments. However, the next MSU STARS Report will include the value in holdings for each sustainably invested category.
Because the investments held by the MSU Alumni Foundation are managed by third-party investors, we are currently unable to determine the value of existing sustainability-certified investments. However, the next MSU STARS Report will include the value in holdings for each sustainably invested category.
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.