UTAM is pleased to report that the University of Toronto Endowment rated Gold (the second-highest rating level) in the 2023 pilot to test the Endowment Impact Benchmark (EIB). The EIB is a new assessment, rating and benchmarking framework for sustainable and impact investing, launched by the Intentional Endowments Network (IEN). In the pilot, five endowments were assessed based on strategy, management, governance, and transparency in relation to social and environmental objectives.

Developing the EIB was a collaborative effort: UTAM sat on the benchmark’s steering committee and worked with the IEN to advise, from a participant’s perspective, on the structure and content of the assessment questionnaire. To help make the assessment process more efficient for further roll-out, we also provided feedback after the pilot was completed.

“We welcome this new, standardized measure of progress in sustainable and impact investing. The EIB is a robust tool that allows us to examine our investment practices through a new lens,” says Chuck O’Reilly, UTAM’s President and Chief Investment Officer. As a third-party verification tool, the EIB will enhance governance of responsible investing practices and provide additional assurance to stakeholders – especially for impact-focused endowments, which have not had a similar benchmark before now.

“Even though UTAM’s approach to investing is grounded in ESG integration, rather than on impact investing, it’s interesting to see that the Endowment rates very well against this innovative benchmark – and in comparison to some highly respected peers,” says O’Reilly. “We’re pleased, too, that the Endowment’s investments may have a positive impact.”

As part of U of T’s comprehensive approach to sustainability, UTAM is committed to allocating at least 10% of the Endowment portfolio to sustainable and low-carbon investments by 2025 – a commitment we’re confident will be met. At December 31, 2023, 6.8% of the Endowment’s net asset value was invested in such strategies, and UTAM continues to evaluate sustainable and low-carbon strategies for the Endowment portfolio.

Four other leading endowments, representing public and private universities and colleges, piloted the EIB alongside U of T. Arizona State University Foundation and the University of California were also rated Gold; California State University Foundation was rated Silver; and Lewis & Clark College received Platinum, the top rating in the group.

The ratings are based on a questionnaire completed by each institution and submitted with supporting documentation. Of the questions, 32 are scored and 21 are data-only. The answers were verified and scored by BlueMark, a third-party provider of independent impact verification services.

The 2023 EIB results highlighted several strengths in our investment practices that contributed to the U of T Endowment’s Gold rating, including UTAM’s Responsible Investing Policy, fossil fuel divestment and net zero targets, transparent and integrated reporting, and participation in collaborative engagement organizations.

In 2024, IEN will engage a second, larger cohort of endowments to participate in the EIB. “The development of this benchmark is significant. It gives endowments a robust tool to evaluate and enhance responsible investing programs,” says O’Reilly. “We encourage other endowments and foundations, whether impact investors or not, to participate in the EIB’s benchmarking assessments. Understanding the impact of endowment investments provides another way to evaluate investing practices and opens possibilities to advance them further.”

The Intentional Endowments Network is an organization of higher-education institutions that collectively support consideration and implementation of responsible investing initiatives. Members seek to enhance financial performance by making investments that advance an equitable, low carbon and regenerative economy. UTAM has been an active member of the IEN since 2018.