Socially Responsible Investing

Purpose 

The purpose of this policy is to establish a framework for socially responsible investing (SRI) that aligns with the university's values, mission, and commitment to sustainability and social justice. The university aims to invest in ways that promote positive social, environmental, and economic impacts while also generating financial returns. 

Scope 

This policy applies to all university investments, including endowment funds, operating funds, and any other investment portfolios managed by the university or its investment managers. 

Definitions 

1. Socially Responsible Investing (SRI): SRI is the practice of investing money in companies and funds that have positive social impacts and that prioritize human and environmental health and wellbeing.
2. Environmental, Social, and Governance Investing (ESG): The practice of Investing in companies and funds that prioritize environmental issues, social issues, and ethical corporate governance. 

Principles 

The university commits to the following principles in its investment activities: 

1. Applying Best Practices in SRI and ESG Investing: The university considers leading guidance on SRI and ESG investing, such as the United Nations Principles for Responsible Investing (PRI), including:

• Incorporating ESG Factors: The university will prioritize environmental, social, and governance (ESG) factors into its investment analysis and decision-making processes.
• Active Ownership: The university will engage with companies and managers to promote better ESG practices and will exercise its voting rights to influence positive change.
• Collaboration: The university Investment Managers will collaborate with other institutional investors to advance ESG goals and share best practices.
• Disclosure: The university will report on its responsible investment practices and ESG outcomes to enhance transparency and accountability to stakeholders, including students, faculty, and alumni.

2. Upholding University Values: Investing practices should reflect the university’s mission and values, including diversity, equity, inclusion, and sustainability. This includes abstaining from participating as an investor or shareholder in companies and organizations that are directly or indirectly involved in activities inconsistent with the university’s values, including but not limited to:  o Fossil fuel extraction, production, and refinement;

• Tobacco production and manufacturing; and devices used for the consumption of tobacco products;
• Weapons production and adaptations including, but not limited to, militarized surveillance systems, drone technology, and bomb development or manufacturing, and
• Human rights violations (i.e. acts of genocide, ethnic cleansing, modern slavery, Indigenous rights violations, and other activities that violate safety, security, and fundamental human rights).

3. Proactive Transparency and Accessibility: The university will ensure complete and proactive transparency and accessibility in its investment practices. The entirety of the university’s investment portfolio, information about the university’s SRI and ESG practices, and other institutional investment education resources will be made available to stakeholders, including students, faculty, and alumni on the ACSRI website.  

Any WWU student, faculty member, or staff may submit a proposal for review of an investment to the BOT Executive Committee. 

Proposals will be reviewed to ensure there is evidence of a broad and continuing base of support within the University community. Evidence of such support is outlined in the SRI charter, please see the document for specific criteria.

If the proposal is judged to meet these guidelines, the SRI will be convened by the BOT Executive Committee.

Upon the Executive Committee’s convening of the SRI, the SRI will evaluate investments using the criteria outline in the committee charter.

During the first quarter of its convening, the SRI will develop a policy recommendation, subject to BOT approval, on socially responsible investing (as referenced in section 4(a)) that aligns with the United Nations Principles of Responsible Investing