Responsible Investing

As the asset manager for the University of Toronto’s Pension, Endowment (LTCAP), and short-term working capital fund (EFIP), we are committed to being a responsible investor on behalf of the University while fulfilling our investment mandate and fiduciary duty.

Consistent with the United Nations-supported Principles for Responsible Investment (PRI), UTAM defines Responsible Investing as an approach to investing that aims to incorporate environmental, social, and governance (ESG) factors into investment decisions to better manage risk and generate sustainable, long-term returns. Over the past several years, UTAM has worked with the University of Toronto leadership to strengthen and formalize our shared commitment to responsible investing.

As we balance prudent risk management with our efforts to generate sustainable returns, we also take a broader view of the managers we invest with – because we believe that material environmental, social and governance (ESG) considerations can have a significant impact on investment performance. We’ve therefore incorporated ESG considerations into our investment analysis and decision-making processes as part of our long-term strategy, as well as our day-to-day management of the university’s pension, endowment and short-term working capital assets.

In December 2016, UTAM became a signatory in support of the PRI, which are a set of six aspirational principles designed to encourage and assist investors in integrating ESG into their investment processes. In becoming a signatory, we have committed to the following six Responsible Investment Principles:

1
We will incorporate ESG issues into investment analysis and decision-making processes.
2
We will be active owners and incorporate ESG issues into our ownership policies and practices.
3
We will seek appropriate disclosure on ESG issues by the entities in which we invest.
4
We will promote acceptance and implementation of the Principles within the investment industry.
5
We will work together to enhance our effectiveness in implementing the Principles.
6
We will each report on our activities and progress towards implementing the Principles.

About our Responsible Investing Practices

In our annual Responsible Investing Reports, and here, on our website, we provide detailed information about our processes and programs.  These continue to be developed with the goal of following best practices for an organization of our size and the way in which we invest. 

We provide our Responsible Investing Policy below as well as our latest Responsible Investing Report.

We have created separate pages on this website with information on the following topics:

ESG Integration in Manager Selection: On this page, we describe specific actions we take to integrate ESG into our Manager Selection and Monitoring process.

Engagement and Advocacy Initiatives: On this page, we provide information on our recent Engagement and Advocacy Initiatives.

Montréal Carbon Pledge: We signed the Montréal Carbon Pledge in 2017 and on this page, we include reports with the carbon footprints of the Pension and Endowment portfolios.

Proxy Voting: In 2016, UTAM took back control of proxy voting from external investment managers, where possible, and adopted an ESG aligned voting policy.  This page describes our approach to proxy voting.

Affiliations and Memberships: UTAM believes that there is strength in numbers and that by joining together with other like-minded investors we can achieve together what might not be possible individually. On this page, we highlight the external organizations that we have joined or supported as part of our responsible investing activities.

Responsible Investing Policy

 

Latest Responsible Investing Report