University of Massachusetts Lowell
PA-9: Sustainable Investment

The institutes’ social choice fund invests solely in the Neuberger Berman Socially Responsive Equity Fund (NBSLX). NBSLX is an equity mutual fund which incorporates ESG criteria into its investment selection and monitoring process to identify companies which are leaders in sustainable growth and profitability. ESG Criteria used by the fund managers include the following: Environmental Impact, Workplace Policies, Community Impact, Sustainable Supply Chains, Product Integrity and Governance & Disclosure.

The Foundation’s Investment Policy Statement has been amended to include ESG criteria as part of the Investment Committee’s investment selection and monitoring process. In addition, the endowment is prohibited from directly investing in fossil fuels. Environmental, Social and Governance – As a long-term investor, the Foundation is concerned with environmental, social and governance (“ESG”) issues which may affect the performance of its investments and are inconsistent with the University’s mission and commitment to sustainability. As such, the Committee will consider ESG factors as part of its investment selection and monitoring process. The extent of this consideration will be determined by the Committee and may include evaluating external investment managers’ consideration of ESG factors as part of their investment process and encouraging investment managers to enhance their ESG assessment capabilities.

Yes, ESG considerations are part of the Investment Committee’s investment selection and monitoring process. (see above) The Investment Committee recently selected a new equity manager, which was allocated a portion of the endowment portfolio. As part of the Committee’s selection process, it inquired with potential managers regarding any ESG criteria that they use as part of their investment process. The manager that was ultimately selected had integrated robust ESG factors into their investment and risk-management processes firm-wide, in addition to being a member of the UNPRI. While this was not the only criteria used by the Committee in their decision, it was one of several criteria used.

The endowment is prohibited from directly investing in fossil fuels. Existing direct investments in fossil fuel companies have been sold from the endowment portfolio and future purchases are prohibited as determined by the Foundation’s Board of Directors.

The UMass Foundation is a founding member of the Intentional Endowments Network and signatory to the Carbon Disclosure Project. The Intentional Endowments Network supports colleges, universities, and other mission-driven tax-exempt organizations in aligning their endowment investment practices with their mission, values, and sustainability goals without sacrificing financial returns. In doing so, this broad-based, collaborative network will make a significant and critical contribution to creating a healthy, just, and sustainable society. http://www.intentionalendowments.org/ The Carbon Disclosure Project (CDP) provides a global system for organizations to measure, disclose, manage and share environmental information. CDP investor initiatives – backed in 2015 by more than 822 institutional investors representing an excess of US$95 trillion in assets – give investors access to a global source of year-on-year information that supports long-term objective analysis. This includes evidence and insight into companies’ greenhouse gas emissions, water usage and strategies for managing climate change, water and deforestation risks. www.cdp.net