The recently released results of UTAM’s PRI assessment show our continued commitment to responsible investing, sustainability and transparency. Once again, in assessment topics applicable to UTAM, we have scored higher than the median rating for our peer group of PRI signatories with assets under management ranging from US $1 billion to US $10 billion, as well as compared to all PRI signatories regardless of level of assets under management.

The Principles for Responsible Investment (PRI) is a UN-supported network of investors that promotes sustainable investing through the incorporation of environmental, social and governance (ESG) factors in investment and ownership decisions. PRI requires signatories to submit their responsible investing practices to regular assessments – typically every year. UTAM has participated in PRI assessments since becoming a signatory on behalf of the University of Toronto in 2016.

PRI considered the 2024 assessment voluntary for signatories, like UTAM, who submitted results for PRI assessment in 2023. “Choosing to go ahead with the 2024 assessment was an easy decision,” says Chuck O’Reilly, UTAM’s President and Chief Investment Officer. “These assessments support our commitment to reporting transparently and comprehensively to the university administration and its wider community of stakeholders. As well, PRI results help us confirm that we are not only maintaining but also continuing to improve our RI practices. For UTAM, PRI assessments are a quality control measure.”

UTAM is assessed in seven modules that are applicable to our investment approach of allocating capital to managers and relevant asset classes. Comparing the 2024 assessment to 2023, our scores improved from four stars to five in four modules and remained at four stars in the other three. Our average absolute score of 88 (out of 100) improved on our 2023 average of 85. Among participating signatories, we ranked in the 75th percentile or higher in all modules.

We increased our absolute numerical scores in all five asset class modules, adding a star in modules for Fixed Income, Private Equity, Real Estate and Hedge Funds assets. Our score in the Listed Equity module, where we retained our four star rating, also increased significantly, from 78 to 89.

In reviewing our responsible investing practices, we compare our current PRI performance to our own past performance and that of two peer groups: signatories with assets under management of US$1 billion to US$10 billion, and all signatories regardless of AUM.

In the Policy, Governance and Strategy module, UTAM received a strong absolute score of 84 points, maintaining our four star rating. While we both gained and lost points in different module questions, our absolute score dropped six points compared to last year’s assessment. On review, we determined that we lost points in reporting on proxy voting related to a small global equity mandate.

We remain confident, however, that our proxy voting policies and reporting are aligned with our overall priorities and best practices in stewardship. We’re also pleased that we continue to be ranked for this module in the top quartile among both peer groups.

Since 2016, our PRI assessment results have consistently been above the median, whether compared to peers in our AUM cohort or all PRI signatories. “We’re proud of these solid results, and the confirmation that our work is advancing our responsible investing practices and, ultimately, the sustainability goals of the university,” O’Reilly says.

For more information on the PRI’s assessment process, visit unpri.org.

UTAM’s latest PRI scorecard and our current and past PRI Assessment and Transparency Reports are available at utam.utoronto.ca.