University of California, Berkeley
PA-8: Committee on Investor Responsibility

In September 2014, aligning UC’s investments arm with the goals of the broader institution, the Office of the Chief Investment Officer (OCIO) developed and adopted a framework on sustainable investing. The framework, developed with input from the UC Board of Regents, UC students, faculty, staff and other stakeholders, is designed to guide the process of evaluating environmental sustainability, social responsibility and governance (ESG) into the investment evaluation process of the OCIO with the same weight as other material risk factors influencing investment decision making. In 2017 UC adopted additional policy to strengthen its ESG framework. UC’s ESG framework and mission are described at: http://www.ucop.edu/investment-office/sustainable-investment/index.html Within UC’s institutional governance process, these important ESG policy decisions are reviewed by the Investment Committee and the entire governing board - UC’s Board of Regents, which makes all investment policy decisions. This decision-making body includes students (a Student Regent and a Student Regent-Designate), faculty, and staff representation. Social and environmental responsibility are an explicit part of its mission and a regular part of its agenda. In our investment policy statement, we have incorporated a sustainability objective which can be found below: The Office of the Chief Investment Officer shall incorporate environmental sustainability, social responsibility, and governance (ESG) into the investment evaluation process as part of its overall risk assessment in its investments decision making. ESG factors are considered with the same weight as other material risk factors influencing investment decision making. The Office of the Chief Investment Officer uses a proprietary sustainability framework to provide core universal principles that inform the decisions and assist in the process of investment evaluation. The Office of the Chief Investment Officer manages the GEP consistent with these sustainability principles. The Framework can be found on the Office of the Chief Investment Officer website in the sustainability section. http://invest.universityofcalifornia.edu/opportunity.html

Regents membership can be found at the link below http://regents.universityofcalifornia.edu/about/members-and-advisors/index.html Maria Anguiano Richard C. Blum William De La Peña, M.D. Gareth Elliott Howard "Peter" Guber George Kieffer - Chair Sherry L. Lansing Hadi Makarechian Paul Monge Eloy Ortiz Oakley Lark Park John A. Pérez - Vice Chair Bonnie Reiss Richard Sherman Ellen Tauscher Bruce D. Varner Charlene Zettel Jerry Brown - Governor of California and ex officio Regent Gavin Newsom - Lieutenant Governor and ex officio Regent Anthony Rendon - Speaker of the Assembly and ex officio Regent Tom Torlakson - State Superintendent of Public Instruction and ex officio Regent Janet Napolitano - President of the University and ex officio Regent J. Alberto Lemus - Alumni Regent Francesco Mancia - Alumni Regent Darin Anderson - Alumni Regent designate Devon Graves - Student Regent-designate Jason Morimoto - Alumni Regent-designate Shane White - Faculty Representative Robert May - Faculty Representative Rafael Sands - Student Advisor Jason Valdry - Staff Advisor Sherry Main - Staff Advisor-designate

In September 2015, the UC Regents voted to adopted a sustainable investment framework. Over the past two years, we’ve worked to further implement the framework for sustainable investing we created in 2015, taking bold steps to fully integrate the consideration of ESG factors systematically and holistically into our investment evaluation and risk-assessment processes. We are in the process of incorporating sustainability objective into investment policy statement. With the following proposed language: The Office of the Chief Investment Officer shall incorporate environmental sustainability, social responsibility, and governance (ESG) into the investment evaluation process as part of its overall risk assessment in its investments decision making. ESG factors are considered with the same weight as other material risk factors influencing investment decision making. The Office of the Chief Investment Officer uses a proprietary sustainability framework to provide core universal principles that inform the decisions and assist in the process of investment evaluation. The Office of the Chief Investment Officer manages the GEP consistent with these sustainability principles. The Framework can be found on the Office of the Chief Investment Officer website in the sustainability section. Over the past 12 months we’ve actively engaged with all our external managers, new and old, to convey sustainability concerns and to stay in alignment. We’ve also improved our automated system for creating and conveying ESG restriction lists to our external managers. In addition, we are actively pursuing investment opportunities in and around the themes that we have identified in our framework for sustainable investment — themes we see as being important macro trends and drivers in the global economy.

The committee’s policy on proxy voting is outlined here: http://www.ucop.edu/investment-office/sustainable-investment/active-ownership/index.html In support of the Finance and Capital Strategies Committee (the “related Standing Committee”), the Investments Subcommittee shall consider, make recommendations, and act pursuant to matters pertaining to University investment strategy and operations, and pertaining to the review and reporting of investment results. http://regents.universityofcalifornia.edu/governance/committee%20charters/Appendix%20C.html