| Overall Rating | Gold |
|---|---|
| Overall Score | 78.59 |
| Liaison | Beverley Ayeni |
| Submission Date | March 1, 2024 |
University of Toronto Mississauga
PA-9: Committee on Investor Responsibility
| Status | Score | Responsible Party |
|---|---|---|
|
0.00 / 2.00 |
Minali
Giani Sustainability Intern Facilities Management and Planning |
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indicates that no data was submitted for this field
Does the institution have a formally established and active committee on investor responsibility (CIR) or equivalent body?:
Yes
The charter or mission statement of the CIR or other body which reflects social and environmental concerns or a brief description of how the CIR is tasked to address social and environmental concerns:
The University established its affiliate, University of Toronto Asset Management (UTAM), to provide investment management services with respect to the University’s endowment fund and other investable assets. The University has established investment policies, agreements and directions to UTAM including with respect to responsible investing.
UTAM is subject to the oversight of its board which is a multi-stakeholder body, with representatives of University Administration, including the President of the University, the Faculty Association and an independent member who is also the Chair of the Board. UTAM reports semi-annually to the University’s Business Board on the investment performance and risk of the portfolios it manages for the University, as well as annually on its responsible investing program.
UTAM also engages with the University’s Investment Committee (IC) which was established in its current form in 2016 and currently consists of five members with significant investment experience, each appointed by the President of the University. The mandate of the IC is designed to foster direct interaction and collaboration with UTAM. The IC and UTAM hold formal meetings at least every quarter and engage in regular dialogue between meetings.
The IC reports to the President of the University and provides expert advice to U of T’s administration, collaborating extensively with the administration and with UTAM management staff on investment objectives and investment activities, including responsible investing.
UTAM has an internal Responsible Investing Committee (RIC) which oversees all matters relating to the development and implementation of our responsible investing practices including the following activities:
• Develops and approves our Responsible Investing Policy for Management Committee and Board approval
• Sets annual responsible investing objectives, including those specifically related to climate issues
• Identifies and evaluates evolving best practices with respect to responsible investing
• Approves and oversees the implementation of responsible investing practices
• Provides appropriate training for staff
• Develops responsible investing reporting to stakeholders
• Oversees annual PRI reporting
• Considers any other relevant matters
Source: https://www.utam.utoronto.ca/about-us/internal-committees-teams/#RIC
UTAM is subject to the oversight of its board which is a multi-stakeholder body, with representatives of University Administration, including the President of the University, the Faculty Association and an independent member who is also the Chair of the Board. UTAM reports semi-annually to the University’s Business Board on the investment performance and risk of the portfolios it manages for the University, as well as annually on its responsible investing program.
UTAM also engages with the University’s Investment Committee (IC) which was established in its current form in 2016 and currently consists of five members with significant investment experience, each appointed by the President of the University. The mandate of the IC is designed to foster direct interaction and collaboration with UTAM. The IC and UTAM hold formal meetings at least every quarter and engage in regular dialogue between meetings.
The IC reports to the President of the University and provides expert advice to U of T’s administration, collaborating extensively with the administration and with UTAM management staff on investment objectives and investment activities, including responsible investing.
UTAM has an internal Responsible Investing Committee (RIC) which oversees all matters relating to the development and implementation of our responsible investing practices including the following activities:
• Develops and approves our Responsible Investing Policy for Management Committee and Board approval
• Sets annual responsible investing objectives, including those specifically related to climate issues
• Identifies and evaluates evolving best practices with respect to responsible investing
• Approves and oversees the implementation of responsible investing practices
• Provides appropriate training for staff
• Develops responsible investing reporting to stakeholders
• Oversees annual PRI reporting
• Considers any other relevant matters
Source: https://www.utam.utoronto.ca/about-us/internal-committees-teams/#RIC
Does the CIR include academic staff representation?:
No
Does the CIR include non-academic staff representation?:
No
Does the CIR include student representation?:
No
Members of the CIR, including affiliations and role:
The Committee is composed of the President and Chief Investment Officer (Chair), the Head of Fixed Income, the Head of Private Markets, the Chief Risk Officer, and the Chief Operating Officer.
From time to time, other UTAM staff may be invited to join the Committee.
From time to time, other UTAM staff may be invited to join the Committee.
None
Examples of CIR actions during the previous three years:
Post 2021, the University of Toronto Asset Management Corporation (UTAM) began incorporating a comprehensive Responsible Investing review into the UTAM Annual Report. As stated in the 2022 integrated report, “In addition to our usual review of investment activities, governance, risk management and portfolio performance, we present content that until now has been covered in our stand-alone Responsible Investing Report: detailed analysis of how environmental, social and governance (ESG) factors are considered in our investment decision-making and stewardship activities”.
Below are a few notable highlights:
• In 2021, UTAM, on behalf of the University, joined the United Nations–convened Net-Zero Asset Owner Alliance (NZAOA) – making U of T the first university in the world to become a member. The Alliance is a member-led initiative of institutional investors committed to transitioning their investment portfolios to net-zero GHG emissions by 2050 – consistent with a maximum temperature rise of 1.5°C. Joining the Alliance affirms our commitment to achieve net zero carbon emissions associated with the Endowment portfolio by no later than 2050. UTAM has reduced the carbon footprint of the equity (and equity-like) securities component of the Endowment portfolio by more than 40% – meeting our reduction target almost a decade ahead of schedule.
• In early 2021, UTAM became a founding participant of the University Network for Investor Engagement (UNIE), a coalition of Canadian university endowments and pension plans. UNIE’s coordinator is SHARE (Shareholder Association for Research & Education), a non-profit investor advocacy organization. In partnership with SHARE, UNIE engages with companies in the investment portfolios of participating universities, with the goals of reducing greenhouse gas emissions and accelerating the transition to a low-carbon economy. In the same year, UTAM became a founding participant of Climate Engagement Canada (CEC). This initiative, akin to Climate Action 100+, will identify about 40 of Canada’s highest greenhouse gas-emitting corporations and work collaboratively to engage with them and encourage leading practices with respect to climate change risks and opportunities.
• In June 2021, UTAM and more than 70 other institutional investors signed a letter to Canada’s Standing Senate Committee on Banking, Trade and Commerce regarding Bill S-216, the Modern Slavery Act. The letter asks the committee to strengthen parts of the bill, including widening the scope of human rights risks beyond forced and child labour to include other human rights issues that companies and investors encounter.
• In October 2021, the university pledged to divest its Endowment portfolio from holdings in fossil fuel companies, to achieve net zero carbon emissions associated with the Endowment by 2050, and to allocate 10% of Endowment assets to sustainable and low-carbon investments by 2025.
• In 2022, the university eliminated direct exposure to fossil fuel companies in the Endowment. In EFIP, there was no direct exposure to fossil fuel companies and, during 2022, we eliminated all material indirect exposure to fossil fuel companies.
• In 2022, UTAM engaged PricewaterhouseCoopers LLP (PwC) to verify, through a limited assurance review, UTAM’s carbon footprint calculations and reporting.
Source: https://www.utam.utoronto.ca/wp-content/uploads/2023/05/UTAM-Annual-Report-2022.pdf
Source: https://www.utam.utoronto.ca/wp-content/uploads/2022/10/UTAM-Responsible-Investing-Report-2021.pdf
Below are a few notable highlights:
• In 2021, UTAM, on behalf of the University, joined the United Nations–convened Net-Zero Asset Owner Alliance (NZAOA) – making U of T the first university in the world to become a member. The Alliance is a member-led initiative of institutional investors committed to transitioning their investment portfolios to net-zero GHG emissions by 2050 – consistent with a maximum temperature rise of 1.5°C. Joining the Alliance affirms our commitment to achieve net zero carbon emissions associated with the Endowment portfolio by no later than 2050. UTAM has reduced the carbon footprint of the equity (and equity-like) securities component of the Endowment portfolio by more than 40% – meeting our reduction target almost a decade ahead of schedule.
• In early 2021, UTAM became a founding participant of the University Network for Investor Engagement (UNIE), a coalition of Canadian university endowments and pension plans. UNIE’s coordinator is SHARE (Shareholder Association for Research & Education), a non-profit investor advocacy organization. In partnership with SHARE, UNIE engages with companies in the investment portfolios of participating universities, with the goals of reducing greenhouse gas emissions and accelerating the transition to a low-carbon economy. In the same year, UTAM became a founding participant of Climate Engagement Canada (CEC). This initiative, akin to Climate Action 100+, will identify about 40 of Canada’s highest greenhouse gas-emitting corporations and work collaboratively to engage with them and encourage leading practices with respect to climate change risks and opportunities.
• In June 2021, UTAM and more than 70 other institutional investors signed a letter to Canada’s Standing Senate Committee on Banking, Trade and Commerce regarding Bill S-216, the Modern Slavery Act. The letter asks the committee to strengthen parts of the bill, including widening the scope of human rights risks beyond forced and child labour to include other human rights issues that companies and investors encounter.
• In October 2021, the university pledged to divest its Endowment portfolio from holdings in fossil fuel companies, to achieve net zero carbon emissions associated with the Endowment by 2050, and to allocate 10% of Endowment assets to sustainable and low-carbon investments by 2025.
• In 2022, the university eliminated direct exposure to fossil fuel companies in the Endowment. In EFIP, there was no direct exposure to fossil fuel companies and, during 2022, we eliminated all material indirect exposure to fossil fuel companies.
• In 2022, UTAM engaged PricewaterhouseCoopers LLP (PwC) to verify, through a limited assurance review, UTAM’s carbon footprint calculations and reporting.
Source: https://www.utam.utoronto.ca/wp-content/uploads/2023/05/UTAM-Annual-Report-2022.pdf
Source: https://www.utam.utoronto.ca/wp-content/uploads/2022/10/UTAM-Responsible-Investing-Report-2021.pdf
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Data source(s) and notes about the submission:
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