An alternative for UBC donors
The Board of Governors recognizes climate change is an important issue for a number of university stakeholders and donors, and respects their concerns and commitment. In response to those concerns, UBC is creating an alternative investment pool for the university Endowment that is low carbon and meets best practices for environmental, social and governance (ESG) factors.
The new Sustainable Future Pool will be established with an initial allocation of $10 million from the Trek endowment. This pool will provide an alternative endowment investment choice in 2017.
The new pool will have an overall ESG score of “A” and it will have less exposure to fossil fuels—only 2 per cent in oil and gas compared with 4 per cent in the core endowment fund. Its portfolio will hold only 24 companies of the 200 identified on the 350.org exclusion list compared with 62 in the core endowment fund.
The new Sustainable Future Pool will be managed by IMANT. It will target a similar return as the core endowment fund, but may experience marginally higher volatility as a trade-off for the narrowed mandate.