Equity Considerations: Increase member diversity on the CIR committee. Consider diversity- related issues in University investments. Co-Benefits: A sustainable investment portfolio becomes a living classroom, providing students with real-world examples of ESG principles in action. This can be integrated into course curriculum, research projects, and internships, enriching academic and professional development. Leading the way in green finance attracts positive attention and strengthens the University’s reputation as a forward-thinking institution committed to social responsibility. This can attract top talent, students, and donors, boosting overall community engagement and pride. Investing in environmentally responsible companies often aligns with long-term financial stability. Companies with strong ESG practices tend to demonstrate better risk management and resource efficiency, potentially leading to more reliable returns and even cost savings.
Sustainable Investments Summary: This section addresses environmental, social, and governance (ESG) aspects of CWU University and foundation investments. CWU’s total investment pool exceeds $60 million, and other University committees are actively developing policies to manage these investments with sustainability in mind. ESG is a framework commonly used to assess organizational commitments to sustainability and ethical practices. The environmental pillar looks at how an entity or institution impacts the environment, including climate change and greenhouse gas emissions, pollution and waste management, resource usage and conservation, and biodiversity and habitat protection. The social pillar examines how an entity interacts with its stakeholders, including employees, customers, communities, and suppliers. The governance pillar focuses on a entity’s leadership and decision-making processes. Climate change is the defining challenge of our time and ESG investing prioritizes entities with strong environmental practices. This helps steer capital towards solutions that combat climate change and build a greener future for all. Organizations with robust ESG practices often demonstrate better governance, risk management, and employee relations. This translates to greater resilience in the face of economic and social challenges, ultimately leading to more stable and reliable returns for investors.
For CWU, ESG investing isn’t just about financial returns; it’s about aligning University investments with our mission, vision, and values. The CWU Council on Investor Responsibility (CIR) and the Finance and Audit Committee of the CWU Foundation Board, are developing policies to manage CWU’s investments with ESG considerations taken into account. CIR meetings are open to the campus community for input on the University’s investments, and University stakeholders can engage in discussion on CWU’s investments at Sustainability Forums.
Objective: Diversify CWU’s financial portfolio with more sustainable investments and integrate ESG factors into the University’s investment strategy.
Projected GHG Emission Reductions: Medium Impact Strategy: Increase collaboration between University stakeholders managing financial investments; facilitate ESG reporting; increase campus stakeholder engagement with University investments. Action Steps: • Have CIR representatives meet with the Finance and Audit Committee of the CWU Foundation Board. - Discuss broader University investment strategy with focus on sustainability. • Obtain ESG performance of our investments, analyze them and report. • Develop and adopt ESG investment policies and have them approved by the Board of Trustees. • Consider negative and positive screens on investment (positive screens prioritize companies leading in ESG, while negative screens exclude those lagging in ethical practices or harming the environment). Department Lead(s): CWU Council on Investor Responsibility, and Finance and Audit Committee of the CWU Foundation Board Initial and Ongoing Costs (if applicable): ESG database(s) (10-30k annually). Phasing Plan: Academic Year 2023-2024: Elect policies for ESG investing • Academic Year 2024-Ongoing: - Actively manage University investments with ESG considerations taken into account. - Improve ESG performance of University’s investments. - Develop additional positive and/or negative screens for University investments. - Enhance reporting on University investments.
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