Williams College
PA-10: Sustainable Investment
| Status | Score | Responsible Party |
|---|---|---|
|
1.77 / 5.00 |
Tanja
Srebotnjak Director Zilkha Center for Environmental Initiatives |
"---"
indicates that no data was submitted for this field
Part 1. Positive sustainability investment
4,200,000,000
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) | 50,000,000 US/Canadian $ |
| Community development financial institutions (CDFIs) or the equivalent | 0 US/Canadian $ |
| Socially responsible mutual funds with positive screens (or the equivalent) | 211,000 US/Canadian $ |
| Green revolving funds funded from the endowment | 1,000,000 US/Canadian $ |
If any of the above is greater than zero, provide:
From the FY21 Investment Report:
Williams initiated its impact investing program in 2015 as part of the college’s larger plan to address climate change; the Investment Committee and President Maud Mandel extended this initiative in 2021. In this program, we seek to invest with managers who not only generate attractive returns, but are also experts on companies, projects or technologies focused on the reduction of global greenhouse gases. Williams’ more seasoned impact investments are generating both compelling returns and a reduction in greenhouse gas emissions. We continue to actively seek investment opportunities while collaborating with peer institutions to share ideas and best practices. We are pleased with the continued evolution of the opportunity set and look forward to making further investments behind this important initiative. Through the end of FY21, we had committed $30 million to impact investments focused on the reduction of global greenhouse gas. As of June 30, 2021, we had received $24 million of cumulative distributions (from exited investments) and had $17 million of remaining exposure. In the first quarter of FY22, we committed an additional $20 million with two new managers, bringing the total amount to $50 million.
The College also announced in 2021 that it will not expand or renew legacy investments in fossil fuel energy projects.
Williams has established the following investment vehicles:
- A Social Choice fund for donors which is invested in a socially responsible mutual fund ($211,000 as of 6/30/2021)
and a community loan fund.
- A dedicated fossil fuel-free investment fund, held parallel to the endowment, to which donors may direct major gifts beyond their annual Alumni Fund and Parents Fund
contributions.
- A low-carbon vehicle within the TIAA-CREF plan in which our employees may choose to invest their retirement savings.
On Green revolving funds funded from the endowment:
We listed an annual $1 million fund here that is used to support campus sustainability projects. The projects can be proposed by area representatives on campus and are then carefully reviewed and scored by a group of sustainability practitioners with respect to their benefits and costs. The scoring is done using Allovance, a multi-criteria decision support software. The sustainability fund is replenished annually through the budget process. It does not need to re-plenish itself through monetary savings from, for example, reduced energy consumption.
Williams initiated its impact investing program in 2015 as part of the college’s larger plan to address climate change; the Investment Committee and President Maud Mandel extended this initiative in 2021. In this program, we seek to invest with managers who not only generate attractive returns, but are also experts on companies, projects or technologies focused on the reduction of global greenhouse gases. Williams’ more seasoned impact investments are generating both compelling returns and a reduction in greenhouse gas emissions. We continue to actively seek investment opportunities while collaborating with peer institutions to share ideas and best practices. We are pleased with the continued evolution of the opportunity set and look forward to making further investments behind this important initiative. Through the end of FY21, we had committed $30 million to impact investments focused on the reduction of global greenhouse gas. As of June 30, 2021, we had received $24 million of cumulative distributions (from exited investments) and had $17 million of remaining exposure. In the first quarter of FY22, we committed an additional $20 million with two new managers, bringing the total amount to $50 million.
The College also announced in 2021 that it will not expand or renew legacy investments in fossil fuel energy projects.
Williams has established the following investment vehicles:
- A Social Choice fund for donors which is invested in a socially responsible mutual fund ($211,000 as of 6/30/2021)
and a community loan fund.
- A dedicated fossil fuel-free investment fund, held parallel to the endowment, to which donors may direct major gifts beyond their annual Alumni Fund and Parents Fund
contributions.
- A low-carbon vehicle within the TIAA-CREF plan in which our employees may choose to invest their retirement savings.
On Green revolving funds funded from the endowment:
We listed an annual $1 million fund here that is used to support campus sustainability projects. The projects can be proposed by area representatives on campus and are then carefully reviewed and scored by a group of sustainability practitioners with respect to their benefits and costs. The scoring is done using Allovance, a multi-criteria decision support software. The sustainability fund is replenished annually through the budget process. It does not need to re-plenish itself through monetary savings from, for example, reduced energy consumption.
Percentage of the institution's investment pool in positive sustainability investments:
1.22
Part 2. Investor engagement
Sustainable investment policy
Yes
None
A copy of the sustainable investment policy:
---
None
The sustainable investment policy:
https://sustainability.williams.edu/2020-sustainability-goals-and-milestones/impact-investments/
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:
We seek opportunities to allocate a portion of the endowment to “impact investment” managers whose areas of expertise include companies, projects or technologies focused on the reduction of global greenhouse gas emissions. The return on such investments will be evaluated not solely in monetary terms, but also in terms of their potential effectiveness in addressing climate change.
Proxy voting
No
None
A copy of the proxy voting guidelines or proxy record:
---
None
A brief description of how managers are adhering to proxy voting guidelines:
The college has the option of proxy voting when the college holds separate accounts and/or direct shares. However, currently Williams does not hold any shares directly.
Williams has not filed a shareholder resolution or written directly to companies, but has written to investment managers. See below.
"Williams College has an Advisory Committee on Shareholder Responsibility (ACSR). A detailed description of the activities of the committee can be found at the link below, inclusive of membership. The College does not have any interest in direct shares in public companies and so
the ACSR does not vote proxies or file shareholder resolutions.
https://committees.williams.edu/other-committees/shareholder-responsibility/"
Williams has not filed a shareholder resolution or written directly to companies, but has written to investment managers. See below.
"Williams College has an Advisory Committee on Shareholder Responsibility (ACSR). A detailed description of the activities of the committee can be found at the link below, inclusive of membership. The College does not have any interest in direct shares in public companies and so
the ACSR does not vote proxies or file shareholder resolutions.
https://committees.williams.edu/other-committees/shareholder-responsibility/"
Shareholder resolutions
No
Examples of how the institution has engaged with corporations in its portfolio about sustainability issues during the previous three years:
---
Divestment efforts and negative screens
Yes
A brief description of the divestment effort or negative screens and how they have been implemented:
Williams screens the Investment Pool for direct investments related to Sudan. Further, the Investment Office has sent letters to its separate account managers requiring that they divest from Sudan.
With respect to the fossil fuel divestment movement, Williams has recently announced that it will not renew or expand legacy investments in fossil energy projects. It remains committed to impact investing, particularly in the are of renewable energy.
With respect to the fossil fuel divestment movement, Williams has recently announced that it will not renew or expand legacy investments in fossil energy projects. It remains committed to impact investing, particularly in the are of renewable energy.
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:
Members of the institution network collaboratively both formally and informally with peer institutions on industry best practices. Staff members attend industry relevant conferences and training sessions as well.
Optional Fields
Additional documentation to support the submission:
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Data source(s) and notes about the submission:
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