university of guelph working group on responsible investing

UNIVERSITY OF GUELPH WORKING GROUP ON RESPONSIBLE INVESTING

TUESDAY, APRIL 7, 2015

1:00 - 3:00 P.M.

University Club Boardroom University Centre, 5th Flor

AGENDA

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1. Welcome and Review of Agenda and Action Notes (March 25)a) Overview of Proposed Meeting Agenda b) Action Notes - March 25, 2015

2. Approaches to RI in Universities & NFP Organizationsa) Canada Pension Plan Investment Board - Approach to RI [Ed Cass, Senior

Vice-President & Chief Investment Strategist, CPPIB]

3. Debrief on Community Consultationsa) Debrief from March Community Consultation Sessions b) Review of Written Submissions Received to Date

4. Overview of University Context for RIa) Dalhousie University and RI b) McGill University and RI c) University of British Columbia and RI d) University of Guelph - Endowment- & Gift-Related Policies

5. Next Steps/Up-dated Work Plana) Up-dated Work Plan b) Consideration of Approach to Preparing Report

AdjournmentAttendance: Mary Anne Chambers (Chair), Adina Bujold, Ben Bradshaw, Patrick Case, Karen Kuwahara, Virginia McLaughlin, John Miles, Don O'Leary, Erin Skimson, Vicki Hodgkinson (University Secretary) Regrets: Cass Andrew

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UNIVERSITY OF GUELPH WORKING GROUP ON RESPONSIBLE INVESTING

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AdjournmentGuests: Ed Cass, Senior VP & Chief Investment Strategist, CPPIB Next Meeting: Monday, April 20, 2015 | 9:30 a.m. - 11:30 a.m. | University Club VIP Boardroom

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UNIVERSITYSECRETARIAT To: Members, Working Group on Responsible Investing From: Vicki Hodgkinson, University Secretary Subject: Welcome and Approval of Agenda

Meeting: Tuesday, April 7, 2015

Welcome and Review of Agenda and Action Notes (March 25, 2015) The Chair will welcome Members and invite them to review the proposed meeting agenda as well as the action notes (enclosed) from the Working Group’s meeting on March 25, 2015. N:\BOG\BOG Standing Commitees & Sub-Committees\Finance Committee\Ad Hoc Working Group on Responsible Investing\Meeting Packages\April 7 2015\Cover Memos\Cover Memo Agenda & Action Notes.docx

Overview of Proposed Meeting Agenda

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Working Group on Responsible Investing

Tasks arising from 4th Meeting (Mar 25/15) & Status Report

Attendees: Mary Anne Chambers, Cass Andrew, Ben Bradshaw, Adina Bujold, Karen Kuwahara, Virginia McLaughlin, John Miles, Erin Skimson || Vicki Hodgkinson

Regrets: Patrick Case, Don O’Leary

Guest: Lynn Logan, Western University

Task ACTION Notes

Circulate materials re Western and reference documents identified through meeting with Lynn Logan

UNIVERSITY SECRETARIAT

Email with attachments sent to WGRI on March 27, 2015

Schedule meeting with representative of McGill University Circulate & post information about McGill RI policy & process


Contacted Mr. Butts with request to meet with WGRI in April or May. Response pending. Provide materials re McGill for April 7th meeting package.

Prepare outline to assist with drafting of WGRI report


See action notes from past WGRI discussions; prepare for April 7th meeting package

Transcribe and circulate community input from March 7 and March

25 drop-in consultation


Include in April 7 and/or April 20 meeting package

Inventory and circulate written submissions/media coverage

responding to call for community input to WGRI


Include in April 7 and/or April 20 meeting package

Bring forward any outstanding items from action notes of previous meetings: Circulate U of G’s Gift Acceptance Policy Circulate & post on WGRI web page, “General Endowment Fund

Management Policy Circulate & post information on RI policy/process for Dalhousie

University & UBC


Enclose links/materials in April 7, 2015 meeting package

NEXT MEETINGS

Tuesday, April 7, 2015 1:00 - 3:00 p.m.

Monday April 20, 2015 9:30 - 11:30 a.m.

N:\BOG\BOG Standing Commitees & Sub-Committees\Finance Committee\Ad Hoc Working Group on Responsible Investing\Meeting Action Summaries\March 25 2015\Action Summary - WGRI Mar 25 2015.docx

Action N

otes - March 25, 2015

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UNIVERSITYSECRETARIAT To: Members, Working Group on Responsible Investing From: Vicki Hodgkinson, University Secretary Subject: Approaches to RI in Universities & NFP Organizations

Meeting: Friday, March 13, 2015 a) Canada Pension Plan Investment Board – Approach to RI Mr. Ed Cass, Senior Vice-President & Chief Investment Strategist for the Canada Pension Plan Investment Board (CPPIB) will attend the meeting. Mr. Cass also serves as a volunteer member of the University of Guelph’s Investment Subcommittee. He will provide a brief overview of the CPPIB’s approach to Responsible Investing (RI) offering introductory remarks for 5 – 10 minutes and then engaging in discussion with the Working Group about 20 - 30 minutes. Brief Biography for Mr. Cass: Beginning April 1, 2014, Ed was appointed Senior Vice-President & Chief Investment Strategist for the Canada Pension Plan Investment Board (CPPIB). Formerly, Ed served as Vice-President and Head of Global Tactical Asset Allocation and is responsible for the fund's internal macro asset class active management program. Ed has also held the positions of Head of Global Corporate Securities and Head of Global Capital Markets at CPPIB. Most recently, he was Managing Director and Chief Investment Officer for Fortress Investment Group’s Drawbridge Relative Value Fund where he was responsible for the development and execution of fixed income, currency, stock index and commodity trading strategies. With over 20 years of investment experience, Ed previously held senior positions at Deutsche Bank Canada and TD Securities. Ed holds a Bachelor of Science (Hons.) degree in Theoretical Physics from Queen’s University and a Bachelor of Laws from Osgoode Hall Law School. Background Materials: Background information about the CPPIB and its approach to RI was circulated to Working Group members by email on March 27, 2015. This included the 2014 CPPIB Annual Report and its 2014 “Report on Sustainable Investing”.

On-Line Edition of 2014 Annual Report -- http://viewer.zmags.com/publication/37dab3ed 2014 Report on Sustainable Investing -- http://bit.ly/1Muil30

N:\BOG\BOG Standing Commitees & Sub-Committees\Finance Committee\Ad Hoc Working Group on Responsible Investing\Meeting Packages\April 7 2015\Cover Memos\Cover Memo CPPIB.docx

Canada Pension Plan Investment Board - Approach to RI [Ed

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UNIVERSITYSECRETARIAT To: Members, Working Group on Responsible Investing From: Vicki Hodgkinson, University Secretary Subject: Debrief on Community Consultations


a) Debrief on input from March Community Consultation Sessions The transcribed notes from the input received at the March 13th drop-in session were circulated to Working Group members with the March 25th meeting materials. The input received at the March 25th drop-in session – including related petition documents -- is in the process of being transcribed and assembled for circulation to the Working Group. It will be sent to members as soon as it is available. b) Review of Written Submissions Received to Date Enclosed is an inventory of all written submissions received in regard to the Working Group’s mandate (i.e., apart from information presented during the consultations sessions). Those items highlighted have been circulated to members previously. The submissions not highlighted are enclosed in this meeting package for the information of Working Group members. All submissions received are acknowledged promptly by the University Secretariat with a message similar to the following:

Thank you for your interest in the Working Group on Responsible Investing (WGRI) and the advice you have offered. Your message will be relayed to the Working Group at the earliest opportunity. Updates about WGRI activity over the coming months will continue to be provided on its web page: https://www.uoguelph.ca/secretariat/office-services-board-governorsboard-standing-committees/ad-hoc-working-group-responsible-investing.

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Debrief from March Community Consultation Sessions

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University of Guelph

Working Group on Responsible Investing

Inventory of Written Submissions

Date Received

Name Title, Position or Affiliation Response Date

Jan 20, 2015 Lisbie Rae, Lecturer in SETS (retired) Jan 22, 2015

Mar 6, 2015 Julie Simmons, Assoc. Prof – Dept of Political Science (UoG) Mar 6, 2015

Mar 7, 2015 Lisa Kowalchuk, Assoc. Prof – Dept of Sociology & Anthropology Mar 9, 2015

Mar 19, 2015 Leah Levac Assistant Professor, Community Engaged ScholarshipDepartment of Political Science Mar 19, 2015

Mar 20, 2015 Anna Barford Master’s Student, Environmental Management & Policy Mar 20, 2015

Mar 24, 2015 John F. Devlin Associate Professor, School of Environmental Design and Rural Development (Brief Devlin Fossil Free Divest) Mar 25, 2015

Mar 24, 2015 Kate Parizeau Assistant Professor, Department of Geography March 25, 2015

Mar 26, 2015 John F. Devlin Associate Professor, School of Environmental Design and Rural Development (Petition – Sociology & Anthropology) Mar 27, 2015

Mar 30, 2015 Archie Bonifacio VP Wealth Management, DUCA Financial Services (Meritas SRI Funds, Oceanrock Investments Inc.) Mar 31, 2015

Mar 31, 2015 Dr. Elizabeth Finnis Assistant Professor, Department of Sociology & Anthropology April 1, 2015

Shaded rows Previously distributed to the Working Group on Responsible Investing

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Review of Written Submissions Received to Date

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From : John F Devlin <[email protected]>

Subject : Submission to the Ad Hoc Working Committee on Responsible Investment concerning fossil fuel divestment

To : [email protected], Fossil Free Guelph <[email protected]>

Gryph Mail [email protected]

Submission to the Ad Hoc Working Committee on Responsible Investment concerning fossil fuel divestment

Tue, Mar 24, 2015 06:48 PM

Jackee1 attachment

Dear Committee Members:Please find attached a short brief expressing my concerns about climate change and my support for a program of divestment from fossil fuel companies by the University of Guelph Board of Governors. I believe that investment in fossil fuel companies by the University represents both a fiduciary risk and a failure of ethical leadership.

Fiduciary RiskThe potential for a substantial decline in the value of fossil fuel assets represents a financial risk. The decline in asset value may come as a result of market reactions to anticipated changes in climate policy. It may come from an international agreement or from national policy changes. The revaluation may be slow but it is equally reasonable to assume that it will be rapid: A phenomenon similar to the recent collapse in fuel prices or the 2008 financial crisis. The potential for such a rapid decline renders fossil fuels a high risk investment. The university is not well positioned to absorb such a financial shock. It is thus prudent to divest from these assets as quickly as possible.

Ethical leadershipBy investing in fossil fuel companies the University is financing and profiting from activity that is driving climate change and its

Page 1 of 3Gryph Mail

4/1/2015https://mail.uoguelph.ca/zimbra/h/printmessage?id=135454&xim=1


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consequences. This contradicts the University's mission and commitment to undertaking “a leadership role in preparing students and employees to achieve a just and sustainable society… [and becoming] a model of sustainability, with curriculum and operations reflecting an integrative approach to learning and practice” (University of Guelph 2014). The movement towards divestment represents an aspiration towards long term ecological and social stability.Certainly the global economy is dependent of fossil fuels and this is a dependency that will be difficult break. There are strong forces encouraging decision makers to choose the short term option of maintaining current fossil fuel dependent technologies. But the necessity for adjustment towards alternative energies is clear and is pressing. The University of Guelph has an ethical responsibility to adopt a leadership position in the development and adoption of new technologies that will help society turn away from the energy technologies of the 20th century and towards the promising potential of alternatives. Shifting the University portfolio towards alternative energy technologies and companies would be an important statement of concern and commitment to the creation of a sustainable future.

Action requestedI ask the Ad Hoc Working Group on Responsible Investment to recommend to the Board of Governors a freeze on all new endowment fund investments in fossil fuel companies and to divest completely from these companies as quickly as possible.

With best wishes for the successful completion of your work,

-- Dr.John F. Devlin, Associate Professor,Graduate Coordinator Rural Planning and DevelopmentSchool of Environmental Design and Rural DevelopmentUniversity of Guelph, Tel: 519-824-4120 Ext.52575 / Fax: 519-767-1686




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SEDRD Website: https://www.uoguelph.ca/sedrd/My Website: http://www.jdevlin.netTwitter @jfdevlin

Brief-Devlin-Fossil-Fuel-Divestment-24-March-2015.docx35 KB




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Devlin 1

Brief

Presented to the University of Guelph Ad Hoc Working Group on Responsible Investment

By John F Devlin School of Environmental Design and Rural Development

University of Guelph [email protected]


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Devlin… 1

Ecological Overshoot Since the 1970s we have been in ecological overshoot implying that annual consumption of

resources exceeds the Earth’s capacity for regeneration. The Global Footprint Network estimates that it now takes the Earth one year and six months to regenerate the resources that are consumed in one year. We maintain this overshoot by liquidating the “stock” of the Earth’s resources: extracting more forest products, fish, energy, and soil fertility than are created annually. In addition the waste products on this extraction and consumption are creating multiple pollution problems. The combination of declining resource stocks and pollution is a threat to the health of the planet and future human well-being (Ewing et al. 2010).

Greenhouse Gases and Climate Change Climate change is one manifestation of overshoot. Greenhouse gases are a waste product and

pollutant. Increased greenhouse gas emissions are contributing to climate change. The devastating impacts of which are numerous: increasing severe weather; droughts; floods; wildfires; declining water availability; disrupted food production systems; disrupted integrity of ecosystems; and accelerated rates of species extinction. The human displacement resulting from these effects is disproportionately experienced by marginalized people across the world. Climate change represent not only an ecological concern but also an issue of social justice. As confirmed by the Intergovernmental Panel on Climate Change, the last three decades have been the warmest since 1850 (IPCC 2014 ). The IPCC has further confirmed that this warming has been caused by the growth in anthropogenic greenhouse gas emissions, driven primarily by the combustion of fossil fuels. Based on these facts, it is clear that any efforts to mitigate global climate change must include a commitment to reduce the use of fossil fuels.

Unburnable Carbon Climate scientists, environmental organizations and even notable mainstream financial experts,

have asserted that the majority of the world's fossil fuel reserves must stay in the ground in order to prevent catastrophic climate change. The level of global warming considered to be manageable is 2° Celsius. As average temperatures approach this level the effects of climate change will increase. The amount of carbon we can release into the atmosphere while hoping to hold at average temperature increases to 2° Celsius is 565 Gigatons of CO2 equivalent. But the known reserves are 2,795 Gigatons CO2. If this is burned we would be on track for a warming of 6° Celsius or higher (McKibben 2012).

In 2013 The International Energy Agency said that if governments were really committed to limiting the rise in global temperatures, two-thirds of the currently known oil, coal and gas reserves would have to be left in the ground (Reuters 2014). In Canada analysts suggest that oil sands supplies should be left in the ground (Dyer 2015).

Industry will certainly want monetize its known reserves but it is very likely that governments will be forced to move towards restrictions on fossil fuel burning. The extraction and burning of known reserves of fossil fuel will be constrained by climate change policy. Hence it is apparent that the asset value of these reserves has been significantly over valued on the books of fossil fuel companies (Lee & Ellis 2013). Identified fossil fuel reserves represent an asset bubble which when deflated will result in a major decline in the value of companies holding those assets. In 2013 Bloomberg Finance released its Carbon Risk Valuation Tool to assist companies in assessing the earnings and share price risk associated with the potentially ‘stranded assets’ resulting from shifts in climate change policy (Bloomberg Finance 2013).


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Devlin 2

Divestment Campaigns In light of these analyses divestment from fossil fuels has become an important area of financial

activity. At the Davos World Economic Forum in 2013 UN climate chief Christiana Figueres urged companies to back away from investing in carbon-intensive fuels. Many foundations have already expressed their intention to divest. The Divest-Invest Philanthropy coalition which includes the Park Foundation, the John Merck Fund, the Schmidt Family Foundation, the Wallace Global Fund, and the Joseph Rowntree Charitable Trust has suggested that fossil fuels present financial and ethical risks and they are encouraging divestment (Reuters 2014).

The Rockefeller family whose wealth flowed from Standard Oil announced in September 2014 that its $860 million philanthropic organization, the Rockefeller Brothers Fund, was joining the divestment movement. The fund had already eliminated investments involved in coal and tar sands entirely while increasing its investment in alternate energy sources. A trustee of the fund said that there are financial problems ahead for companies that have stockpiled more reserves than they can burn. “We see this as having both a moral and economic dimension,” he said (Schwartz 2014).

Norway’s Government Pension Fund Global (GPFG) which has a value of $850 billion has divested from a total of 114 companies for environmental and climate reasons as part of its responsible investing program. The divested companies include tar sands producers (Carrington 2015).

University divestment Stanford University has voted to remove coal companies from its endowment portfolio. Coal’s

status as a major source of carbon pollution linked to climate change persuaded the trustees to remove companies “whose principal business is coal” from their investment portfolio (Wines 2014). The Australian National University pulled all of its investments out of fossil fuels in October 2014.

In Canada to date there are divestment campaigns organized at the following universities: British Columbia; Concordia; Dalhousie; Guelph; Kwantlen; Lakehead; McGill; McMaster; Memorial; Mount Allison; New Brunswick; Saint Mary's; Simon Fraser; Toronto; Trent; Victoria; and York (http://www.gofossilfree.ca/). These student-mobilized campaigns reflect the growing concern of young people about the future and are an important manifestation of citizen engagement.

Implications for Responsible Investment

Fiduciary Risk The potential for a substantial decline in the value of fossil fuel assets represents a financial risk. The decline in asset value may come as a result of market reactions to anticipated changes in climate policy. It may come from an international agreement or from national policy changes. The revaluation may be slow but it is equally reasonable to assume that it will be rapid: A phenomenon similar to the recent collapse in fuel prices or the 2008 financial crisis. The potential for such a rapid decline renders fossil fuels a high risk investment. The university is not well positioned to absorb such a financial shock. It is thus prudent to divest from these assets as quickly as possible.

Ethical leadership By investing in fossil fuel companies the University is financing and profiting from activity that is

driving climate change and its consequences. This contradicts the University's mission and commitment to undertaking “a leadership role in preparing students and employees to achieve a just and sustainable society… [and becoming] a model of sustainability, with curriculum and operations reflecting an integrative approach to learning and practice” (University of Guelph 2014). The movement towards divestment represents an aspiration towards long term ecological and social stability.


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Devlin 3

Certainly the global economy is dependent of fossil fuels and this is a dependency that will be difficult break. There are strong forces encouraging decision makers to choose the short term option of maintaining current fossil fuel dependent technologies. But the necessity for adjustment towards alternative energies is clear and is pressing. The University of Guelph has an ethical responsibility to adopt a leadership position in the development and adoption of new technologies that will help society turn away from the energy technologies of the 20th century and towards the promising potential of alternatives. Shifting the University portfolio towards alternative energy technologies and companies would be an important statement of concern and commitment to the creation of a sustainable future.

Action requested I ask the Ad Hoc Working Group on Responsible Investment to recommend to the Board of

Governors a freeze on all new endowment fund investments in fossil fuel companies and to divest completely from these companies as quickly as possible.

References Bloomberg Finance. 2013. Bloomberg Carbon Risk Valuation Tool. http://about.bnef.com/white-

papers/bloomberg-carbon-risk-valuation-tool-2/. Carrington, Damian. 2015. “World’s Biggest Sovereign Wealth Fund Dumps Dozens of Coal Companies.”

The Guardian. http://www.theguardian.com/environment/2015/feb/05/worlds-biggest-sovereign-wealth-fund-dumps-dozens-of-coal-companies.

Dyer, E. 2015.Climate change study says most of Canada's oil reserves should be left underground, CBC News. http://www.cbc.ca/news/politics/climate-change-study-says-most-of-canada-s-oil-reserves-should-be-left-underground-1.2893013

Ewing B., D. Moore, S. Goldfinger, A. Oursler, A. Reed, and M. Wackernagel. 2010. The Ecological Footprint Atlas 2010. Oakland: Global Footprint Network.

Howard, Emma. 2015. “University of Sydney to Cut Carbon Footprint of Its Investments by 20%.” The Guardian. http://www.theguardian.com/environment/2015/feb/09/university-of-sydney-to-cut-carbon-footprint-of-its-investments-by-20

IPCC 2014. Intergovernmental Panel on Climate Change, Climate Change 2014 Synthesis Report. Retreived from http://www.ipcc.ch/pdf/assessment-report/ar5/syr/SYR_AR5_LONGERREPORT.pdf

Lee, M., & Ellis, B. (2013). Canada’s Carbon Liabilities: The Implications of Stranded Fossil Fuel Assets for Financial Markets and Pension Funds. Retrieved from https://www.policyalternatives.ca/sites/default/files/uploads/publications/National Office%2C BC Office/2013/03/Canadas Carbon Liabilities.pdf

McKibben, B. (2012, August 2). Global Warming’s Terrifying New Math. Rolling Stone. Retrieved from http://www.rollingstone.com/politics/news/global-warmings-terrifying-new-math-20120719

Reuters-2014-Deep-pocketed foundations pledge to divest from fossil fuels, Thu Jan 30, 2014 http://www.reuters.com/article/2014/01/31/climate-investment-idUSL2N0L42C920140131

Schwartz, J. 2014. Rockefellers, Heirs to an Oil Fortune, Will Divest Charity of Fossil Fuels. http://www.nytimes.com/2014/09/22/us/heirs-to-an-oil-fortune-join-the-divestment-drive.html

University of Guelph. (2014). Sustainability at the U of G. Retrieved from https://www.uoguelph.ca/sustainability/welcome-sustainability-u-g


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Devlin 4

Wines, M. 2014. Stanford to Purge $18 Billion Endowment of Coal Stock. New York Times. May 6, 2014. http://www.nytimes.com/2014/05/07/education/stanford-to-purge-18-billion-endowment-of-coal-stock.html?_r=0


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From : anna barford <[email protected]>

Subject : Alumni Input to Investment Group

To : [email protected]


Alumni Input to Investment Group

Fri, Mar 20, 2015 04:33 AM

Good Morning from Sweden!

I first want to thank you for taking in opinions from the broadcommunity. This sort of initiative is exactly why I am proud to stillcall myself a Gryphon, despite being part of another institution.

The issue that I would like to raise is that of divestment from thefossil fuel industry. I am not intimately equated with the holdingsof the endowment fund, so I apologize if my comments are notapplicable at this point in time. However, they are certainly validmoving forward.

Gryphons should not be investing in companies or fields which aredestroying our planet by causing and perpetuating climate change. TheIPCC reports from 2007 and 2014 confirm that climate change is causedby man, and will get worse if we continue on a business as usual path.We must drastically reduce our fossil fuel consumption in ways thatare unprecedented in the most recent decades. Many companies refusethis evidence as they stand to make profits from its denial. Thereare many solutions for fossil free transport and energy being fosteredwithin your school of engineering (from which I graduated in 2012). Iencourage you to consider investing in companies that will supportthis type of innovative thinking and are acting to profit responsibly.

If you have any questions, or want me to expand on my criteria or




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reasoning for it, please feel free to reply to this email at any time.

Thanks to the board, the committee and especially the secretariatfor considering my thoughts, and for all your hard work.

-- Anna BMaster's StudentEnvironmental Management and PolicyIIIEE, Lund, Swedense.linkedin.com/in/annabarford




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From : E. Finnis <[email protected]>

Subject : Submission to the Ad Hoc Working Committee on Responsible Investment re: fossil fuel divestment


Cc : [email protected]


Submission to the Ad Hoc Working Committee on Responsible Investment re: fossil fuel divestment

Tue, Mar 31, 2015 08:46 PM

Dear members of the Ad Hoc Working Group on Responsible Investment,

As confirmed by the recent Intergovernmental Report on Climate Change (IPCC) report, the last three decades have been the warmest since 1850[1], causing significant global environmental change. The effects of climate change have disrupted the integrity of various ecosystems, accelerated rates of species extinction and contributed to substantial human displacement, experienced disproportionately by marginalized people across the world.[2] Moreover, there are researchers at the University of Guelph (including me) who work directly with communities and peoples who are struggling with the negative livelihood, food security, and cultural effects of climate change.

The IPCC has further confirmed that this warming has been caused by the growth in anthropogenic greenhouse gas emissions, driven primarily by the combustion of fossil fuels.[3] It is clear that any efforts to mitigate global climate change must be premised on ending dependence on fossil fuels. Climate scientists, environmental organizations, and notable mainstream financial experts have asserted that the majority of the world's remaining fossil fuel reserves must stay in the ground in order to prevent catastrophic climate change.[4]

By investing its endowment funds in the world's largest fossil fuel companies, the University of Guelph is directly financing and profiting from the growth of the fossil fuel industry, and, in effect, the perpetuation of climate change. This contradicts the University's mission and commitment to undertaking “a leadership role in preparing students and employees to achieve a just and sustainable society… [and becoming] a model of sustainability, with curriculum and operations reflecting an integrative approach to learning and practice.”[5]

As a faculty member at the University of Guelph, I ask the Working Group on Responsible Investment to advise that the University's Board of Governors freeze all new endowment fund investments in 200 of the world's largest fossil fuel companies, and to divest




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completely from these companies within a period of 5 years. This will certainly signal UofG's commitment to creating a better planet for all, present and future.

Thank you, Elizabeth Finnis

1 IPCC (2014) Climate Change 2014 Synthesis Report. Retrieved from http://www.ipcc.ch/pdf/assessment-report/ar5/syr/SYR_AR5_LONGERREPORT.pdf

2 Ibid

3 Ibid p. 4

4 Lee, M., & Ellis, B. (2013). Canada’s Carbon Liabilities: The Implications of Stranded Fossil Fuel Assets for Financial Markets and Pension Funds. Retrieved from https://www.policyalternatives.ca/sites/default/files/uploads/publications/National Office%2C BC Office/2013/03/Canadas Carbon Liabilities.pdf

5 University of Guelph. (2014). Sustainability at the U of G. Retrieved from https://www.uoguelph.ca/sustainability/welcome-sustainability-u-g

-- Dr. E. FinnisAssociate Professor Department of Sociology and AnthropologyUniversity of GuelphPhone: 519 824 4120 ext. 53234




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From : Arsenio Bonifacio <[email protected]>

Subject : Suggestion to WGRI



Suggestion to WGRI

Mon, Mar 30, 2015 04:54 PM

3 attachments

I am a sessional lecturer at the University of Guelph and this crossed my email. I believe this is an excellent endeavor. If you would like, I have access to one of the pioneers in Responsible Investing and some executive with the Responsible Investment Association. I trust your committee will have access to similar resources, but if there is anything else I can do to connect you with some individuals, please let me know.

Archie BonifacioVice President, Wealth ManagementDUCA Financial Services Credit Union Ltd.416-389-7679

Confidentiality Notice:This message is intended for the sole use of the individual and/or entity to which it is addressed, and may contain information and/or attachments that are privileged, confidential and exempt from disclosure under applicable law. It is the responsibility of the recipient to ensure this message is virus free and no responsibility is accepted by the sender for any loss or damage arising if such a virus or defect exists. If the reader of this message is not the intended recipient, you are hereby notified that any disclosure, dissemination, distribution, duplication or the taking of any action in reliance on the contents of this transmission by someone other than the intended addressee or its designated agent is strictly prohibited. If your receipt of this transmission is in error, please notify the sender immediately by replying to this transmission and then destroy this transmission.




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image001.png6 KB

image002.png64 KB

Meritas_SRI_Brochure.pdf874 KB




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Socially Responsible Investing

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es w

e in

vest

in

to e

ffect

pos

itive

, mea

sura

ble

chan

ge to

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ds

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oved

env

ironm

enta

l, so

cial

and

gov

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nce

prac

tices

. C

om

mu

nit

y D

evel

op

men

t In

vest

men

ts (

CD

I)

Impa

ctin

g pe

ople

and

the

envi

ronm

ent b

y in

vest

ing

in p

rogr

ams

that

ear

n fin

anci

al r

etur

ns

whi

le a

chie

ving

pos

itive

and

last

ing

soci

al a

nd/o

r en

viro

nmen

tal i

mpa

cts.

By

inve

stin

g w

ith M

erita

s S

RI F

unds

from

O

cean

Roc

k, y

ou a

re c

hoos

ing

to s

uppo

rt:

Im

prov

ing

envi

ronm

enta

l pra

ctic

es w

ithin

co

mpa

nies

P

rom

otin

g ge

nder

and

cul

tura

l div

ersi

ty o

f co

rpor

ate

boar

ds

Im

prov

ing

cond

ition

s fo

r fa

ctor

y w

orke

rs

G

ivin

g in

vest

ors

a sa

y on

exe

cutiv

e co

mpe

nsat

ion

B

uild

ing

self-

relia

nce

in d

evel

opin

g na

tions

th

roug

h pr

ovid

ing

smal

l loa

ns to

ent

repr

eneu

rs

E

ncou

ragi

ng c

ompa

nies

to s

uppo

rt fa

ir tr

ade

thro

ugh

thei

r su

pply

cha

in

U

phol

ding

res

pect

for

the

basi

c hu

man

rig

hts

of a

ll pe

ople

to li

ve fr

ee o

f fea

r, vi

olen

ce,

intim

idat

ion

and

disc

rimin

atio

n

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e co

nsid

ered

a n

iche

mar

ket,

soci

ally

re

spon

sibl

e in

vest

men

ts n

ow a

ccou

nt fo

r m

ore

than

$6

00 b

illio

n, o

r ov

er 2

0 pe

r ce

nt1 ,

of t

he in

vest

able

as

sets

in C

anad

a. T

his

can

be a

ttrib

uted

to S

RI’s

ab

ility

to n

ot o

nly

mak

e a

diffe

renc

e in

the

wor

ld,

but t

o al

so g

ener

ate

retu

rns

in li

ne w

ith tr

aditi

onal

in

vest

men

ts w

hile

con

trol

ling

risk.

In fa

ct, o

ver

the

last

10

year

s, S

RI i

nves

tmen

ts, a

s m

easu

red

by th

e Ja

ntzi

Soc

ial I

ndex

®, p

erfo

rmed

as

wel

l or

bette

r th

an tr

aditi

onal

inve

stm

ents

a m

ajor

ity o

f the

tim

e2 .

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ther

wor

ds, b

y ch

oosi

ng s

ocia

lly r

espo

nsib

le

inve

stm

ents

you

are

not

sac

rifici

ng fi

nanc

ial r

etur

ns.

You

are

just

cho

osin

g to

do

wel

l whi

le y

ou a

re

doin

g go

od.

Do

wel

l

Doi

ng g

ood

Scre

enin

g

Com

mun

ityD

evel

opm

ent

Inve

stm

ents

Shar

ehol

der

Enga

gem

ent

Mer

itas

I Fun

ds


of 45

Scre

enin

g —

Inve

st in

lead

ers

On

top

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nanc

ial p

erfo

rman

ce c

riter

ia,

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anR

ock

empl

oys

scre

enin

g to

mak

e su

re

that

bes

t-in

-sec

tor

com

pani

es w

ith s

tron

g pe

rform

ance

in th

e ar

eas

of e

nviro

nmen

tal,

soci

al a

nd g

over

nanc

e (E

SG

) ar

e he

ld in

ou

r fu

nds

and

port

folio

s.

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have

som

e of

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mos

t com

preh

ensi

ve

scre

ens

in p

lace

. Ofte

n, S

RI m

anag

ers

only

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e sc

reen

ing

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de c

ompa

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eir

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d po

rtfo

lios.

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anR

ock

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ploy

s po

sitiv

e sc

reen

ing,

whi

ch is

a p

roac

tive

proc

ess

desi

gned

to s

cree

n in

com

pani

es th

at

dem

onst

rate

lead

ersh

ip in

key

ES

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reas

.

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mun

ity D

evel

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ent

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stm

ents

— M

ake

an im

pac

t

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ehol

der E

ngag

emen

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ence

cha

nge

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mun

ity D

evel

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ent I

nves

tmen

ts (C

DI)

are

uniq

ue to

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itas

SR

I Fun

ds. W

e ar

e th

e on

ly

natio

nal i

nves

tmen

t fun

d fa

mily

in C

anad

a th

at

allo

cate

s up

to tw

o pe

r cen

t of e

ach

fund

to th

ese

inve

stm

ents

. We

wor

k w

ith o

rgan

izat

ions

that

fina

nce

smal

l loc

al b

usin

ess

inst

itutio

ns, s

imila

r to

cred

it un

ions

whi

ch, i

n tu

rn, u

se th

e fin

anci

ng to

pro

vide

m

icro

-loan

s to

ent

repr

eneu

rial p

eopl

e liv

ing

in

impo

veris

hed

com

mun

ities

.

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d st

orie

s in

our

Com

mun

ity D

evel

opm

ent

Inve

stm

ents

bro

chur

e ab

out t

he im

pact

you

can

m

ake

thro

ugh

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itas

SR

I Fun

ds.

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n be

st-in

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tor c

ompa

nies

are

n’t p

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ct. B

y be

ing

inve

sted

, we

have

an

oppo

rtun

ity to

influ

ence

co

mpa

nies

with

in o

ur fu

nds

and

port

folio

s to

impr

ove

thei

r ES

G p

erfo

rman

ce, e

ssen

tially

giv

ing

inve

stor

s a

voic

e at

the

boar

droo

m ta

ble.

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ong

oing

sh

areh

olde

r eng

agem

ent e

ffort

s ha

ve in

fluen

ced

mea

ning

ful c

hang

e in

man

y co

mpa

nies

, inc

ludi

ng

elim

inat

ing

toxi

ns in

per

sona

l car

e pr

oduc

ts,

stre

ngth

enin

g th

e bu

sine

sses

of s

mal

l-sca

le c

offe

e fa

rmer

s an

d ea

rnin

g sh

areh

olde

rs a

“say

on

pay.”

Rea

d st

orie

s in

our

Sha

reho

lder

Eng

agem

ent

broc

hure

abo

ut h

ow y

ou c

an in

fluen

ce c

hang

e th

roug

h M

erita

s S

RI F

unds

.

Neg

ativ

e sc

reen

ing:

Exc

lusi

on o

f wea

pon

s co

ntra

ctin

g, n

ucle

ar

pow

er, a

lcoh

ol a

nd to

bac

co p

rod

uctio

n, p

orno

gra

phy

and

gam

blin

g

Posi

tive

scre

enin

g: S

elec

ting

ind

ustr

y le

ader

s in

inte

rnat

iona

l lab

our

stan

dar

ds,

env

ironm

enta

l im

pac

t, em

plo

yee

rela

tions

, gen

der

and

cu

ltura

l eq

uity

, ani

mal

wel

fare

With

Mer

itas

SRI F

und

s,

it’s

goo

d to

kno

w y

ou c

an

do

wel

l, d

oing

goo

d.

Mer

itas

SRI F

und

sTh

e b

est c

omp

anie

s to

inve

st in

, we

bel

ieve

, are

co

mm

itted

to s

tron

g e

nviro

nmen

tal,

soci

al a

nd g

over

nanc

e p

erfo

rman

ce. T

hey

are

mor

e ef

ficie

nt, m

ore

pro

duc

tive,

m

ore

resp

ecte

d, a

nd b

ette

r ab

le to

miti

gat

e ris

ks

for i

nves

tors

.

Do

wel

l,do

ing

good


of 45

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intended to provide, and should not be relied upon as providing, legal, accounting, tax, financial, investment or other advice, or a solicitation to

buy or sell any securities. The information was obtained from sources believed to be reliable, but cannot be guaranteed to be current, accurate or

complete. OceanRock is not responsible for any errors or omissions contained herein.

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Publication date 05/2014

70 1002 E

1 Responsible Investment Association of Canada; January 2013.

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obtain the SRI companion brochures, please contact your advisor.


of 45

UNIVERSITYSECRETARIAT To: Members, Working Group on Responsible Investing From: Vicki Hodgkinson, University Secretary Subject: Welcome and Approval of Agenda


a) Dalhousie University and RI The following information is offered by way of background:

Fossil Fuel Divestment Statement (Nov. 2014): http://bit.ly/1NA6kEn The Proposal to Divest Dalhousie’s holdings in ‘carbon-holding’ companies (Nov.

2014): http://bit.ly/1ExTmaN Statement of Investment Policies and Guidelines of the Endowment Funds:

http://bit.ly/1CtbwHa b) McGill University and RI Further to discussion, a request has been made for a representative of McGill to meet with the Working Group has been made. An up-date on this request will be provided at the meeting. The following information is offered by way of background:

Statement of Investment Policy: http://bit.ly/1GcJBOf Committee to Advise on Matters of Social Responsibility (CAMSR): http://bit.ly/1G3P5fy

c) University of British Columbia and RI The following information is offered by way of background:

Overview of Responsible Investing: http://bit.ly/1p7AmbE Endowment Responsible Investing Policy: http://bit.ly/1GcLfiQ

d) University of Guelph – Endowment- & Gift-Related Policies The Working Group has received the University of Guelph’s Current Endowment Investment Policy at previous meetings. Members have asked for information about related policies including the following:

General Endowment Fund Management Policy Gift Acceptance Policy: http://bit.ly/19E0xjT

Links for All of these documents, except the Gift Acceptance Policy, have also been incorporated on the WGRI “useful links” web page: https://www.uoguelph.ca/secretariat/node/487/ N:\BOG\BOG Standing Commitees & Sub-Committees\Finance Committee\Ad Hoc Working Group on Responsible Investing\Meeting Packages\April 7 2015\Cover Memos\Cover Memo Univ Context for RI.docx

Dalhousie University and RI of 45

UNIVERSITYSECRETARIAT

To: Members, Working Group on Responsible Investing From: Vicki Hodgkinson, University Secretary Subject: Next Steps/Up-dated Work Plan


a) Up-dated Work Plan Enclosed is the up-dated WGRI work plan for review and discussion about next steps.

b) Consideration of Approach to Preparing Report

Below is a preliminary outline of a table of contents for the WGRI’s final report offered for discussion. Recognizing that the Working Group’s investigations and discussions remain active, the outline is necessarily draft and subject to change in response to direction from the WGRI. Feedback about the draft outline may help to identify further information-gathering that needs to be completed for the Working Group.

Up-dated Work Plan of 45

PRELIMINARY OUTLINE – DRAFT FOR DISCUSSION

Executive Summary Introduction:

Establishment of WGRI – mandate, membership, overview of approach/activities [Appendix for details, including timelines, resources, etc.]

RI – definition guiding WGRI’s work & related considerations current drivers for review/call for recommendations on RI

Context:

current policy for University of Guelph endowment investments current approach to investment management for U of G (e.g. role of Investment Subcommittee, process for manager selection, monitoring, current array of investments)

scan of practices at other Canadian/North American universities, BPS/NFP organizations Community Input:

Review of approach to community input and nature/quantity of input; expression of appreciation for engagement from community

Summary of key points, observations from community consultation Policy Considerations:

Principles informing policy review Working Group’s observations about current U of G policy re endowment investment in light of principles Summary of options considered for policy change Discussion of options Recommendation(s) for policy change (i.e., directional, not detailed proposals for language changes to

policy), including any Working Group advice/reflections on process for moving forward with recommendation(s)

Considerations for Operationalizing Policy:

Working Group’s observations about current practices that need to be considered in developing operational approaches

Working Group’s observations about tools to advance alignment U of G endowment investment process with proposed changes to policy

Summary of tools/options available for implementing policy change & achieving alignment with underpinning principles of policy review

Discussion of options Recommendations and/or concluding observations about options, including any Working Group

advice/reflections on implications arising from operationalization Conclusion

Summary of recommendations Appendices:

Details on WGRI methodology, membership bio listing Inventory of Input from Community Consultations Inventory of Resource documents and organizations (illustrative, not comprehensive) Current endowment investment policy

N:\BOG\BOG Standing Commitees & Sub-Committees\Finance Committee\Ad Hoc Working Group on Responsible Investing\Meeting Packages\April 7 2015\Cover Memos\Cover Memo Next Steps.docx

Up-dated Work Plan of 45

UNIVERSITY OF GUELPH – Working Group on Responsible Investing -- ACTIVITY PLAN & TIMELINE

Updated - April 2015

Meeting/Activity Agenda/Description January 27 2015 Overview of WGRI Mandate

Overview on Responsible Investing Review of Investment Profile of the University’s Endowments Overview of Endowment Investment Policy Examples of Responsible Investing Policies at Other Canadian Universities Review of Work Plan, Milestones, Next Steps including Communication & Consultation Strategy

February`18 2015 Primer on University Policy & Process for Endowment Investment – including briefing on fiduciary duties, investment governance, role of the Investment Subcommittee, & investment policy in practice/administration of policy Overview of Common RI Elements in Universities & NFP Organizations Motion Endorsed at CSA 2015 Annual General Meeting re Fossil Free Guelph Community Consultations & Related Next Steps

March 13, 2015 Presentation: Fossil Free Guelph Drop-In Consultation Session (1:30 – 4:00 p.m.)

March 25, 2015 Drop-In Consultation Session (Noon – 1:30 p.m.) Approaches to RI in Universities & NFP Organizations – including presentation from Western University, further background resources on RI Perspectives & Approaches Debrief on Community Consultations & Review of Written Submissions (to-date) Overview of University Context for RI (Materials re University mission/values) Next Steps & Updated Work Plan

April 7, 2015 Presentation/Discussion re RI & CPPIB – guest: Dr. Edwin Cass Review/Debrief on Further Community Input Consideration of Approach to Preparing Report Next Steps

April 20, 2015 Discussion with Chair of Investment Subcommittee – guest: Dr. Michael Walsh Possible additional guest from Canadian University (McGill – TBC) Review/Debrief on Further Community Input Consideration of Approach to Preparing Report Next Steps

June – July 2015 Complete Report for submission to Finance Committee Fall 2015 Board Committee & Board Deliberations on RI

N:\BOG\BOG Standing Commitees & Sub-Committees\Finance Committee\Ad Hoc Working Group on Responsible Investing\Work Planning\Work Plan for April 7 WGRI meeting.docx

Up-dated W

ork Plan of 45

university of guelph working group on responsible investing

Documents