Investment
UVM puts a strong focus on socially responsible investment as well as shareholder advocacy for its financial investments. The Socially Responsible Investment Work Group (SRIWG), which is a committee comprised of administrators, faculty, and undergrad as well as graduate students, reviews current investments and makes recommendations to the Investment Sub-committee.
To learn more about UVM's financial investments and how they relate to the sustainability initiatives at UVM, click on a specific topic below.
PAE Credit 16: Committee on Socially Responsible Investment (2/2)
On September 5, 2008, UVM’s Board of Trustees established the Socially Responsible Investing Work Group (SRIWG), whose charge was to consider specific investment policy proposals based on moral, ethical or social criteria, review the impact of any such proposal on current and potential University investments, solicit input on policy proposals from the campus community at large and forward its investment policy recommendations to the Investment Subcommittee which in turn shall report its recommendations to the Budget, Finance and Investment Committee.
SRIWG consists of: administrative official and work group leader, Claire Burlingham; two members of UVM’s investment sub-committee who represent the Board of Trustees; two faculty members representing the UVM’s faculty; two graduate student representatives; two undergraduate student representatives; two staff members; and one ex-officio member. The group's mission was to:
“consider specific investment policy proposals based on moral, ethical, or social criteria; review the impact of any such proposal on current and potential University investments; solicit input on policy proposals from the campus community at large; and forward its investment policy recommendations.”
SRIWG met with the entire university committee biannually to ask them to bring forward proposals that call for a review of current investments. Then SRIWG reviewed the proposals as well as conducted their own research to put forth recommendations to the Investment sub-committee.
SRIWG completed their research and presented their formal recommendations to the Board on May 2, 2012. The SRIWG was dissolved and a Socially Responsible Investing Advisory Council (SRIAC) was established to support the Vice President for Finance and Administration in fulfilling his/her responsibilities as liaison to the Investment Subcommittee. As of January 2013, a new Sustainability Fellow, Elizabeth Palchak, was hired, under the supervision of the Office of Sustainability, to support the University Controller, and support the work of the Socially Responsible Investing Advisory Council.
UVM would receive 2 out of the 2 possible points for this credit.
PAE Credit 17: Shareholder Advocacy (5/5)
UVM has specific endowments and gift funds that support programs for sustainable agriculture and environmental studies, including programs such as the CREAM program for the student managed dairy herd, the Balch fund for the Morgan Horse Farm, and scholarships for the Rubenstein School of Environment and Natural Resources. However, the university pools all endowment funds for investment through its Long Term Investment pool and does not direct specific gifts to separate investment funds.
When the university passed a resolution for divestment from Sudan it moved the indexed U.S equity fund, part of the overall Long Term Investment Pool portfolio, from a commingled vehicle to a separate investment with a minority manager that was willing to create a separate Tobacco/Sudan-free fund. The Office of Sustainability is working with Development and Alumni Relations to create a new Renewable Energy Fund for alumni and other donors to help finance campus renewable energy projects by contributing to the student-financed and -run Clean Energy Fund.
UVM has submitted letters of resolution to companies regarding ineligibility of UVM investment to the following companies: Rayathon; L3 communications; General Dynamics; Aero Jet; and Alliance Tech Systems. These resolutions addressed social responsibility and concerned investment by companies involved in Cluster Munitions and depleted Uranium. These resolutions would fall under the category of social responsibility, meeting the criteria for the credit under the first option. According to board policy, UVM does not conduct negative screens of investments.
In addition, UVM prohibits investments though proxy resolutions, which creates standards for investment of the endowment. Such examples include not investing in tobacco and/or countries/businesses involved in human rights violations. These proxy resolutions may not prevent direct investment in a company but they would not allow UVM capital funds to be involved in investments contrary to determined proxy resolutions. These proxy resolutions are determined by the sub-committee of finance and investment with help by the Socially Responsible Investment Work Group (SRIWG ; see credit 16).
UVM would receive 5 out of 5 points for this credit.
Claire Burlingham, Controller
UVM Controller's Office
PAE Credit 18: Positive Sustainability Investments (6/9)
Under UVM’s Board of Trustees, the Budget, Finance, and Investment Committee is conscious of issues relating to sustainability and social responsibility, taking them into account when deciding in which companies to invest and divest.
Though the UVM investment portfolio is not publicly available, a figure of 20% of UVM’s $290 million endowment is estimated to be positive sustainable investments. Of the five investment criteria listed in the STARS manual, UVM only actively invests in one: socially responsible mutual funds with positive screens.
UVM would receive 6 out of the 9 possible points for this credit.
Claire Burlingham, Controller
UVM Controller's Office
Tier Two Credits
Credit 1: Student Managed SRI Fund (0/0.25)
Currently, although UVM has the Socially Responsible Investment Work Group (SRIWG), which includes two undergraduate student members and two graduate student members, there is currently no student-run group on socially responsible investments.
Claire Burlingham, Controller
UVM Controller's Office
N/A
Credit 2: Socially Responsible Investment Policy (0/0.25)
Currently, UVM does not have any specific policies regarding the social and/or environmental impacts of its investments. UVM addresses investment policy through the Charter of the Committee on Socially Responsible Investing, which addresses environmental and sustainability factors.
UVM would receive 0 out of 0.25 possible points for this credit.
Claire Burlingham, Controller
UVM Controller's Office
Credit 3: Investment Disclosure (0.25/0.25)
Although the investment information is not publically published at UVM, any member of the public can acquire it from the investment office or have it sent to them upon request.
UVM would receive the full 0.25 points for this credit.
Claire Burlingham, Controller
UVM Controller's Office
N/A
