Foundation increases support for students, sustainability

At its August meeting, the UVic Foundation approved a record $14.5-million budget to support students and the university’s 2016-17 academic mission—an increase of $600,000 from last year. This record budget is the result of investment earnings on the university’s roughly $400-million endowment that support scholarships, bursaries, research centres, chairs, professorships and academic programs.

The foundation’s annual report reinforces the foundation’s commitment to the responsible investing principles that were adopted in 2012. The foundation has continued to investigate investment approaches that integrate these principles into its financial considerations and decision-making. Over the past year, these initiatives included:

• Creating a pilot Fossil-Fuel-Free Fund (F3 fund) for donors who wish to create new endowments that will not be invested in companies with coal, oil or natural gas reserves;
• Completing the first year of reporting as a signatory to the United Nations Principles for Responsible Investing (UNPRI); and
• Reviewing its responsible investment strategies and commitment to environmental, social and governance (ESG) principles by the foundation’s external fund managers

Supporting sustainability

The university has contributed $25,000 to launch the F3 fund. This endowment allows people to contribute and support a variety of campus sustainability initiatives. As well, donors can establish their own endowment of $25,000 or more to support the program of their choice, which can also grow the F3 fund.

“The foundation has demonstrated by its actions that it continues to take its commitment to responsible investing seriously and is committed to helping UVic make our campus a sustainable place for learning, working and living,” says UVic AVP Alumni and Development Tom Zsolnay, who serves as president of the foundation. “By creating the Fossil-Fuel-Free Fund, the foundation is providing donors with an alternative that will not invest in investment instruments which are issued by companies that have proven and probable thermal coal, oil or natural gas reserves.”

• • Find out more or contribute to the Fossil-Fuel-Free Fund.  

For donors who prefer to donate to endowments in the main fund, there are a multitude of options—many of which relate to the environment—such as Pacific Institute for Climate Solutions, Eco-System Bursary, Old Growth/Biodiversity Fund, various Environmental Studies and Earth & Ocean Sciences student awards, Liber Ero Chair in Fisheries Research, and others. For more information, please contact the Development Office at devdonor@uvic.ca

In creating the F3 fund, the foundation reaffirmed its decision not to otherwise divest of or sell fossil-fuel investments related to oil, gas and coal.

Responsible investing

The foundation first adopted a formal policy for responsible investments in 2012 and reviews its commitment annually. Last year, the foundation expanded on this commitment and become a signatory to the UNPRI, an organization that acknowledges the relevance of environmental, social and governance in investment decision making. The foundation completed its initial annual disclosure to UNPRI, which in turn has since issued its first transparency report on the university’s implementation of responsible investing principles. (See UVic’s Private Transparency Report) 

“Given that the foundation’s private report provides additional information stakeholders might find helpful, the private transparency report has been made available on the foundation website. We hope this helps to inform those stakeholders interested in how the foundation is implementing our responsible investment belief,” explains Foundation Chair Carolyn Thoms in the annual report.

The report highlights the foundation’s responsible investing strategies in many ways, such as outlining how the endowment’s external investment managers integrate environmental, social and governance practices into their investment strategies.

Environmental, social and governance practices

Part of the foundation’s responsible investment belief includes requesting annual disclosure by investment managers regarding the processes by which ESG factors are incorporated into the investment decision making process.

Over the past year the actions taken by the foundation’s investment managers include:

• Bentall Kennedy, the Canadian real estate asset manager has increased its coverage of building certifications across its portfolios with $11 billion in assets now certified to Leadership in Energy and Environmental Design (LEED) standards. Across its portfolios of building assets, Bentall Kennedy achieved a decrease of greenhouse gas emissions of 2.8 per cent in 2015 over 2014.
• Walter Scott & Partners Ltd. incorporates ESG guidelines at every stage of the investment process;
• Hexavest Inc. has incorporated ESG in the voting guidelines of its proxy voting policy
• Macquarie Group has signed on to UNIPRI;
• RBC Global Asset Management, the owner of PH&N Investment Services, has signed on to UNPRI;
• Foyston Gordon & Payne Inc. has started to report on company specific ESG developments on a quarterly basis.