| Overall Rating | Silver - expired |
|---|---|
| Overall Score | 56.33 |
| Liaison | Taylor Smith |
| Submission Date | Feb. 25, 2020 |
University of Maryland, Baltimore County
PA-10: Sustainable Investment
| Status | Score | Responsible Party |
|---|---|---|
|
2.23 / 5.00 |
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indicates that no data was submitted for this field
Part 1. Positive sustainability investment
1,465,765,046
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) | 10,000,000 US/Canadian $ |
| Community development financial institutions (CDFIs) or the equivalent | 13,750,000 US/Canadian $ |
| Socially responsible mutual funds with positive screens (or the equivalent) | 1,234,000 US/Canadian $ |
| Green revolving funds funded from the endowment | 0 US/Canadian $ |
If any of the above is greater than zero, provide:
In December 2014, USMF committed $10,000,000 to CIM Group, a private real estate firm that seeks to purchase and reposition assets in urban areas in order to improve neighborhoods and thereby increase real estate values.
In December 2014, USMF (alongside the United Nations and other institutions) provided seed capital for the iShares MSCI ACWI Low Carbon Target ETF (Ticker: CRBN). Details on the fund can be found at: https://www.ishares.com/us/products/271054/ishares-msci-acwi-low-carbon-target-etf.
In July 2018, USMF committed $7,500,000 to FCP Realty, a private real estate firm that operates a value-add strategy primarily in moderate-income, class C residential properties with a focus on community development. An estimated 50% of the Fund is invested in such properties; thus, we have included 50% of the commitment in the total CDFI exposure estimate. Note that committed capital has yet to be fully drawn by the manager.
In August 2019, USMF committed $10,000,000 to Ecosystem Investment Partners (EIP), a private equity firm that makes investments in large-scale ecological and conservation projects. Note that committed capital has yet to be fully drawn by the manager.
In December 2014, USMF (alongside the United Nations and other institutions) provided seed capital for the iShares MSCI ACWI Low Carbon Target ETF (Ticker: CRBN). Details on the fund can be found at: https://www.ishares.com/us/products/271054/ishares-msci-acwi-low-carbon-target-etf.
In July 2018, USMF committed $7,500,000 to FCP Realty, a private real estate firm that operates a value-add strategy primarily in moderate-income, class C residential properties with a focus on community development. An estimated 50% of the Fund is invested in such properties; thus, we have included 50% of the commitment in the total CDFI exposure estimate. Note that committed capital has yet to be fully drawn by the manager.
In August 2019, USMF committed $10,000,000 to Ecosystem Investment Partners (EIP), a private equity firm that makes investments in large-scale ecological and conservation projects. Note that committed capital has yet to be fully drawn by the manager.
Percentage of the institution's investment pool in positive sustainability investments:
1.70
Part 2. Investor engagement
Sustainable investment policy
Yes
None
A copy of the sustainable investment policy:
None
The sustainable investment policy:
The Committee for Socially Responsible Investing of the University System of Maryland Foundation (USMF) was formed to evaluate a proposal to divest from fossil fuels, put forth by the USM student group Fossil Free Maryland. After considerable deliberation and consultation with the students and with national thought leaders on this topic, the Committee made the following recommendations, which were approved by the USMF Executive Committee and the USMF Investment Committee. These actions were the direct result of the students’ initiatives and the Foundation commends the students for their passion, thoughtfulness and willingness to work with the Committee as these issues were deliberated.
1. The Foundation will make no direct investments in the Carbon Underground 200 companies.
The Carbon Underground 200 (sometimes referred to as the Carbon Tracker 200) is an annually updated listing of the top 100 public coal companies globally and the top 100 public oil and gas companies globally, ranked by the potential carbon emissions content of their reported reserves. The list is produced and maintained by Fossil Free Indexes, LLC.
Update: In FY 17, the University System of Maryland Foundation made zero direct investments in Carbon Underground 200 companies.
2. The Foundation will establish a position on the investment staff to seek out investments in renewable energy.
The Foundation has established and filled a position on its investment staff responsible for seeking out investments in renewable energy and it looks forward to maximizing this new opportunity set.
Update: The staff person hired for this position has been actively seeking out investments in renewable energy.
3. The Foundation will become a signatory to the United Nations Principles for Responsible Investment.
The Foundation is committed to integrating ESG (environmental, social and
governance) factors into the investment process. About ten years ago the “Principles for Responsible Investment” were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices. The process was convened by the United Nations Secretary-General. To date about 1,525 asset
owners, investment managers and service providers have become signatories to the PRI, including most of the managers the Foundation does business with and many universities and colleges.
Update: The Foundation became a signatory to the United Nations Principles for Responsible Investment in November of 2016.
4. The Foundation will join the Intentional Endowments Network.
The Intentional Endowments Network is an organization that supports colleges, universities and other tax-exempt organizations in aligning their mission, values and sustainability goals without sacrificing financial returns. It provides opportunities for education and training, peer networking, convening, thought leadership and information exchange.
Update: The Foundation joined the Intentional Endowments Network in July of 2016.
5. The Foundation will renew its appeal to investment fund managers to consider the carbon footprints of the companies they invest in and to choose renewable energy investments over fossil fuel investments, all else being equal.
Three years ago the Foundation sent letters to each of our investment managers and called each of our managers to advise them that we would prefer that they choose investments in renewable energy over fossil fuel, all else being equal. The Foundation will refresh this letter and send it again to all of our managers.
Update: The Foundation refreshed this letter and sent it to investment fund managers in August of 2016.
The Committee and the Foundation again want to thank the students for bringing the important issue of climate change to the forefront.
1. The Foundation will make no direct investments in the Carbon Underground 200 companies.
The Carbon Underground 200 (sometimes referred to as the Carbon Tracker 200) is an annually updated listing of the top 100 public coal companies globally and the top 100 public oil and gas companies globally, ranked by the potential carbon emissions content of their reported reserves. The list is produced and maintained by Fossil Free Indexes, LLC.
Update: In FY 17, the University System of Maryland Foundation made zero direct investments in Carbon Underground 200 companies.
2. The Foundation will establish a position on the investment staff to seek out investments in renewable energy.
The Foundation has established and filled a position on its investment staff responsible for seeking out investments in renewable energy and it looks forward to maximizing this new opportunity set.
Update: The staff person hired for this position has been actively seeking out investments in renewable energy.
3. The Foundation will become a signatory to the United Nations Principles for Responsible Investment.
The Foundation is committed to integrating ESG (environmental, social and
governance) factors into the investment process. About ten years ago the “Principles for Responsible Investment” were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices. The process was convened by the United Nations Secretary-General. To date about 1,525 asset
owners, investment managers and service providers have become signatories to the PRI, including most of the managers the Foundation does business with and many universities and colleges.
Update: The Foundation became a signatory to the United Nations Principles for Responsible Investment in November of 2016.
4. The Foundation will join the Intentional Endowments Network.
The Intentional Endowments Network is an organization that supports colleges, universities and other tax-exempt organizations in aligning their mission, values and sustainability goals without sacrificing financial returns. It provides opportunities for education and training, peer networking, convening, thought leadership and information exchange.
Update: The Foundation joined the Intentional Endowments Network in July of 2016.
5. The Foundation will renew its appeal to investment fund managers to consider the carbon footprints of the companies they invest in and to choose renewable energy investments over fossil fuel investments, all else being equal.
Three years ago the Foundation sent letters to each of our investment managers and called each of our managers to advise them that we would prefer that they choose investments in renewable energy over fossil fuel, all else being equal. The Foundation will refresh this letter and send it again to all of our managers.
Update: The Foundation refreshed this letter and sent it to investment fund managers in August of 2016.
The Committee and the Foundation again want to thank the students for bringing the important issue of climate change to the forefront.
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:
1) In FY 17, the University System of Maryland Foundation made zero direct investments in Carbon Underground 200 companies.
2) The Foundation became a signatory to the United Nations Principles for Responsible Investment in FY 17.
3) IN FY17 the Foundation sent letters to each of our investment managers and called each of our managers to advise them that we would prefer that they choose investments in renewable energy over fossil fuel, all else being equal. The Foundation will refresh this letter and send it again to all of our managers.
2) The Foundation became a signatory to the United Nations Principles for Responsible Investment in FY 17.
3) IN FY17 the Foundation sent letters to each of our investment managers and called each of our managers to advise them that we would prefer that they choose investments in renewable energy over fossil fuel, all else being equal. The Foundation will refresh this letter and send it again to all of our managers.
Proxy voting
No
None
A copy of the proxy voting guidelines or proxy record:
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None
A brief description of how managers are adhering to proxy voting guidelines:
---
Shareholder resolutions
Yes
Examples of how the institution has engaged with corporations in its portfolio about sustainability issues during the previous three years:
In August of 2016, the Foundation sent letters to each of our investment managers and called each of our managers to advise them that we would prefer that they choose investments in renewable energy over fossil fuel, all else being equal.
Divestment efforts and negative screens
Yes
A brief description of the divestment effort or negative screens and how they have been implemented:
The Foundation will make no direct investments in the Carbon Underground 200 companies.
The Carbon Underground 200 (sometimes referred to as the Carbon Tracker 200) is an annually updated listing of the top 100 public coal companies globally and the top 100 public oil and gas companies globally, ranked by the potential carbon emissions content of their reported reserves. The list is produced and maintained by Fossil Free Indexes, LLC. In FY 17, the University System of Maryland Foundation made zero direct investments in Carbon Underground 200 companies.
The Carbon Underground 200 (sometimes referred to as the Carbon Tracker 200) is an annually updated listing of the top 100 public coal companies globally and the top 100 public oil and gas companies globally, ranked by the potential carbon emissions content of their reported reserves. The list is produced and maintained by Fossil Free Indexes, LLC. In FY 17, the University System of Maryland Foundation made zero direct investments in Carbon Underground 200 companies.
Approximate percentage of endowment that the divestment effort and/or negative screens apply to:
100
Investor networks
Yes
None
A brief description of the investor networks and/or collaborations:
In July 2016, USMF joined the Intentional Endowments Network. Details on the IEN can be found at: http://www.intentionalendowments.org/
Optional Fields
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Additional documentation to support the submission:
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Data source(s) and notes about the submission:
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