University of Nebraska - Lincoln
PA-10: Sustainable Investment

We have included market values for investments in businesses that have exhibited exemplary sustainability performance. The criteria used to determine if a specific holding is considered to be a sustainable investment is based on evaluation of environmental and/or social scores. Companies are included if the score is greater than the average ESG score of the benchmark index. While we do not publicly release specific holdings, these investments represent positions in publicly traded equity securities.

RP-6.6.4 Investment of Endowment and Similar Funds The purpose of the endowment funds is to support the University and its mission over the long-term. The endowment funds include the permanent, quasi, and term endowments. The primary investment objectives of investing the endowment funds are to: 1. Preserve the real purchasing power of the principal. This implies the endowment must be invested in a manner that the total return less the income distribution rate is greater than the inflation rate measured by the consumer price index (CPI). 2. Provide a stable source of perpetual financial support to endowment beneficiaries in accordance with the University’s spending policy that establishes the income distribution rate. 3. Consistently integrate environmental, social and governance factors into investment management strategies, processes and practices in the belief these factors can benefit the endowment’s performance and provide a qualitative impact consistent with the values, culture and mission of the University of Nebraska. The permanent endowment includes gifts and bequests received by the Board of Regents but restricted by the benefactor to be held in perpetuity with only the income to be spent for a designated purpose. The quasi endowment includes gifts and bequests received and subsequently designated by the Board of Regents as funds functioning as an endowment with only the income to be spent for purposes designated by the Board. The term endowment includes gifts and bequests received by the Board of Regents for which the benefactor has stipulated the principal may be expended after a stated period or on the occurrence of a certain event. Term endowment income is spent for the purpose provided by the benefactor or designated by the Board. A term endowment may be designated as a quasi endowment by the Board of Regents at the completion of the term. All assets received by the Board of Regents for acceptance as a permanent, quasi, or term endowment from a gift, bequest, or grant or gifts in the form of intellectual property rights shall be accepted and processed by the Vice President for Business and Finance or designee. Investment of endowment funds shall be according to state statute and investment managed by either the University of Nebraska Foundation, a third party manager, the University, or otherwise directed by the Board of Regents. Management of other university-wide funds including assets of retirement of indebtedness funds, bond proceeds, bond construction and product funds, bond reserve funds, bond surplus funds and the trusteed insurance funds shall be accomplished by the Vice President for Business and Finance or designee. The trusteed insurance funds include the trust funds for the group health insurance program, the general Chapter 6. Business and Financial Management RP-231 liability and property self insurance program, and other similar programs. Periodic reports shall be made by the Vice President for Business and Finance regarding these funds to the Board of Regents. Reference: BRUN, Minutes, 34, pp. 275-276 (June 17, 1972). BRUN, Minutes, 56, p. 149 (September 6, 1991). BRUN, Minutes, 66, p. 4 (January 20, 2006). Corporation Secretary revision, RP-6.6.4 (August 14, 2009). BRUN Minutes, 76, p. 71 (April 9, 2021).

Located on RP230, https://nebraska.edu/-/media/unca/docs/offices-and-policies/policies/board-governing-documents/board-of-regents-policies.pdf

ESG principals and considerations are incorporated into the research process.

Each third party manager utilizes a proxy voting framework that is reviewed as part of the research/diligence process.

Yes, institution participates in a variety of network events and engages with service providers, trade groups, and other relevant stakeholder events. For example, we participate in sharing of best practices and information via communication with other Big 10 institutions, including annual in-person meetings where a variety of topics are shared/discussed including sustainable investment. Additionally, we attend other peer sponsored networking events that are held by non-Big 10 institutions, including land grant universities in the Southwest and West Coast. Our policy advocacy is limited primarily to participating as a stakeholder seeking to learn more about key issues.

The figures included in this STARS submission for endowment size (PRE 4) and total value of investment pool (PA 10) include two separate and distinct portfolios. The endowment size (which has been adjusted to include the total value of the investment pool) is governed by the University of Nebraska Foundation's Board of Directors, while the specific data listed in PA 10 for the total value of the investment pool is what is specifically under the purview of the University of Nebraska Board of Regents. The data listed in PA 10 includes the full investment pool that is attributable to the University of Nebraska-Lincoln, while the endowment size represents the University of Nebraska system as a whole.

https://nebraska.edu/-/media/projects/unca/docs/transparency/investment/20220630-energy-and-cu200-exposure-for-university-endowment.pdf

https://journalstar.com/news/local/education/nu-to-consider-adopting-environmental-social-factors-policy-for-investing-endowment-funds/article_fd344073-1860-5460-b794-cd40eb61e0b4.html

https://journalstar.com/news/local/education/nu-to-offer-more-transparency-about-investments-amid-calls-to-divest-from-fossil-fuels/article_30a2e63f-f286-57d1-8f8c-404773f7fc3e.html