University of Wisconsin-Milwaukee
PA-9: Sustainable Investment

A complete accounting of specific amounts invested in the above categories has not been completed, although it is likely that investments that apply to these categories are made within the funds utilized by the endowment, as noted by the information below.

UW SYSTEM The policy on Social Responsibility Investment Considerations applies to the invested assets of the University of Wisconsin System’s Trust Funds, and to individuals interested in providing input regarding the corporate policies or practices of the companies and other entities in which the University of Wisconsin System invests. The purpose of this statement is to communicate the Board of Regents’ policies and practices for considering the various aspects of the social responsibility of the companies, governments, or other entities in which it invests University of Wisconsin System Trusts Funds. Shareholder proxies dealing with some aspect of “social responsibility” are generally to be voted (or directed to be voted) internally by the UW System Trust or Assistant Trust Officer(s) in accordance with various general guidelines approved by Board from time to time. The current guidelines group social responsibility related proxies into the following major categories: • Disclosures overall • Labor and human rights • Health and safety • Environmental practices and animal welfare • Climate change • Sustainability • Diversity and non-discrimination • Political expenditures • Cyber security

To enhance the Board’s awareness of social concerns the Board of Regents, through the Business, Finance, and Audit Committee, directs the University of Wisconsin System Administration to conduct a proxy review to highlight proxy resolutions related to discrimination and substantial social injury. As further provided under RPD 31-13, the Committee will also determine its voting position for such shareholder resolutions. The Regents also wish to solicit input from students, faculty, alumni and citizens on matters related to social concerns. To obtain this input, the Business, Finance, and Audit Committee of the Board of Regents may schedule a public forum at the request of parties interested in presenting such concerns to the Board of Regents. The purpose of this forum is to offer the broadest opportunity for System constituencies to present such information to the Board of Regents. Cognizant of the University of Wisconsin System, state, and federal commitments to environmental protection, the Board of Regents Business, Finance, and Audit Committee, in discharging its responsibility for managing the University of Wisconsin System Trust Funds, does so with the expectation that the companies and other entities in which it invests will evidence a similar commitment in their respective activities. In the event that any persons or group of persons, after careful investigation and evaluation of facts in evidence, concludes that a company in which the University of Wisconsin System Trust Funds has investments appears not to be performing in accord with the Committee’s expectations and the appropriate governmental standards in this area, the Committee will afford those persons an opportunity to detail their evidence and concerns to the Committee. The Committee may afford the company or other entity involved an opportunity to respond to the concerns expressed, before deciding what course of action is appropriate. 2013: UW Trust Funds submitted voting instructions for 25 proposals (including “non-routine” corporate governance proposals), compared with 17 and 38 proposals for the past two years, respectively. Of the proxies submitted for voting by the Trust Funds, 11 came to votes, 12 were withdrawn, one was omitted, and one is pending. The primary submissions for the UW Trust Funds on social issues involved the environment and global warming (nine) and human rights (two). For corporate governance issues, the UW’s primary submissions involved political donations (eleven) and board diversity (two). The highest support vote on an individual social issue came at Halliburton. The resolution, asking the company to report on the company’s process for evaluating human rights risks in their direct operations and supply chains, received 40 percent support. 2014: Trust Funds staff requests approval to vote in the affirmative for the 34 shareholder proposals presented. The majority of these proposals can be viewed as falling under one of the 26 pre-approved issues. Furthermore, approval is requested to vote in the affirmative on additional proxies coming to vote in 2014 if the proposals can be viewed as falling under one of these approved issues.

UW-SYSTEM Regent Policy Document 31-10 (formerly Regent Policy Document 92-4) on Proxy Voting The purpose of this policy is to describe who is responsible for identifying, analyzing, and voting various types of shareholder proxies, proposals put to shareholder vote which may impact the future and fortunes of the companies in which University of Wisconsin System Trust Funds are invested. The general policy of the UW System Board of Regents is to ensure that the voting of proxies is conducted in a diligent manner that reflects the Board’s stewardship and fiduciary responsibilities. To this end, the following guidelines are to be adhered to: Shareholder proxies dealing with “routine” corporate governance and management issues are generally to be voted by the investment managers, in accordance with each manager’s proxy voting guidelines. Shareholder proxies dealing with “non-routine” corporate governance and management issues or issues involving some aspect of “social responsibility” are generally to be voted, or directed for voting, internally. UW System Administration will regularly identify “non-routine” corporate governance and management issues or issues involving some aspect of “social responsibility” for, and provide analyses and recommendations to, the Board of Regents’ Business, Finance, and Audit Committee to assist it in its review. The Committee will then develop voting positions on the proxy proposals, which will be conveyed by UW System Administration staff to the investment managers as needed. UW System Administration will then present to the Committee, at least annually, the results of the proxy voting season.

Regent Policy 31-16 Sudan Divestment The purpose of this policy is to prevent, to the extent possible, making or retaining investments that would provide support to the government of Sudan. The policy was introduced in 2006 due to the ongoing genocide and ethnic cleansing in Darfur sponsored by the Sudanese government and is intended to remain in place as long as such conditions persist. The policy of the UW System Board of Regents is to join in concert with other institutional investors, states, municipalities, and the U.S. government in restricting and discouraging business activity that provides support to the current government of Sudan, due to acts of genocide or “ethnic cleansing” which have occurred in that country.

https://www.wisconsin.edu/trust-funds/investments-and-reports/