Responsible Investing Working Group

Tuesday, May 2, 2017

Responsible Investing Working Group

This is to inform you that the Responsible Investing Working Group, constituted by the Board of Governors, is now in place and has held its first meeting. The terms of reference for the working group is provided below.

All members of the university community are encouraged to provide their comments/views concerning whether and how to incorporate environmental, social and governance (ESG) factors into decision making for the investment of the university's endowment and pension funds. The working group is tasked with making recommendations in this regard while taking into consideration:

  • The legal and regulatory requirements including, among other things, fiduciary responsibilities, investing and investments, ESG reporting and contractual commitments;
  • The goals and purposes of the University pension and endowment funds;
  • Existing University investments, policy and governance frameworks;
  • The financial context of the University;
  • Research into options for incorporating ESG factors into investment decisions;
  • Review of approaches taken at peer institutions;
  • Consultation with University stakeholders e.g. retirees, alumni, donors; and
  • Advice provided by University investment advisors.

Comments are welcomed from all community members, and it is requested that comments be directed to the working group via email through the secretary Mike Grivicic. The working group anticipates that its work will continue into Fall 2017.

Responsible Investing Working Group – Terms of Reference

Membership

10 of 12 members will be financially literate and have knowledge of investments generally. A majority of members will have knowledge of the University’s investment funds.

  • Three members of the Board of Governors or its finance and/or pension committees, other than University employee or student members
  • Six members of either the Board of Governors or its pension committee, as follows:
    • One faculty member to be nominated be the FAUW executive;
    • One staff member to be nominated by the UWSA executive;
    • One CUPE member to be nominated by the executive of CUPE Local 793 (The member of the Pension and Benefits Committee who is a representative of CUPE Local 793);
    • One undergraduate student to be nominated by the FEDS executive;
    • One graduate student to be nominated by the GSA executive; and
    • One retiree to be nominated by the executive of the Retirees' Association (the member of the Pension and Benefits Committee who is a representative of retirees).
  • Vice-president, administration & finance
  • Vice-president, advancement
  • Vice-president, academic & provost, or delegate

Chair

The vice-president, academic & provost or delegate will serve as chair. The chair may vote, if necessary, in order to break a tie.

Terms of Reference

The mandate of this working group is to make recommendations to the Board of Governors through the appropriate committees and subcommittees (outlined below) as to whether and how to incorporate environmental, social and governance (ESG) factors into decision making re: the investment of the endowment and pension funds, taking into consideration:

  • The legal and regulatory requirements including, among other things, fiduciary responsibilities, investing and investments, ESG reporting and contractual commitments;
  • The goals and purposes of the University pension and endowment funds;
  • Existing University investments, policy and governance frameworks;
  • The financial context of the University;
  • Research into options for incorporating ESG factors into investment decisions;
  • Review of approaches taken at peer institutions;
  • Consultation with University stakeholders e.g. retirees, alumni, donors; and
  • Advice provided by University investment advisors.

The working group shall report to the Board of Governors from time to time to provide status reports on its progress in meeting its mandate

Reporting & Approval

Subject to review and approval by the Board of Governors Registered Pension Plan Investments Subcommittee, Finance & Investment Committee and Pension & Benefits Committee, in accordance with their mandates, the recommendations of the working group will be reflected in the statements of investment policies and procedures for the endowment and pension funds and submitted to the Board for final approval.

Term

This working group will serve until the earlier of the date on which it has fulfilled its mandate and the date on which the Board of Governors dissolves the working group.

Committee Membership

Approved by the Board of Governors on 07 June 2016