PRI Principles: Scorecard & Actions
Since 2016, UTAM has been a signatory to the Principles for Responsible Investment (PRI), an investor initiative and leading proponent of responsible investing.
The PRI publishes scorecards for its signatories to assess progress in implementing responsible investing practices over time, across asset classes and in comparison to peers at national and global levels. The PRI also publishes detailed assessment and transparency reports, available in the Reports section of our website.
Our Latest PRI Scorecard
Our most recent PRI assessment and transparency reports cover activities in the 2023 calendar year. The PRI combines numerical scoring (one to five stars) and absolute grading (a single number grade out of 100) for each module.
The table below shows our 2023 scores on each of the seven modules applicable to our approach of allocating capital to managers and the Endowment’s asset class exposure.
We improved our rating to five stars in four modules, maintained our past rating of four stars in the other three modules, and improved our average absolute score to 88 (within a range of 78 to 90 to achieve four out of five stars).
| AUM: US$1 billion to US$10 billion | AUM: All | ||
|---|---|---|---|
| Module | UTAM | Median | Median |
| Policy Governance & Strategy1 | ★★★★ (84) | ★★★ (63) | ★★★★ (68) |
| Listed Equities | ★★★★ (89) | ★★★ (64) | ★★★★ (69) |
| Fixed Income | ★★★★★ (92) | ★★★★ (67) | ★★★★ (67) |
| Private Equity | ★★★★★ (92) | ★★★★ (79) | ★★★★ (73) |
| Real Estate | ★★★★★ (92) | ★★★★ (77) | ★★★★ (71) |
| Hedge Funds | ★★★★★ (92) | ★★★ (65) | ★★★ (65) |
| Confidence-Building Measures | ★★★★ (80) | ★★★★ (80) | ★★★★ (80) |
1Formerly “Investment & Stewardship Policy” in the report for calendar year 2020.
PRI Principles and UTAM Actions
UTAM has undertaken a series of actions to align our policies, processes and practices with the PRI principles.
01
PRI Principle
We will incorporate ESG issues into investment analysis and decision-making processes.
UTAM Actions
- Assess ESG-related risks and opportunities across all portfolios.
- Integrate consideration of ESG factors into all relevant policies and processes.
- Implement an ESG rating framework for investment strategies across asset classes.
- Support industry-wide development of ESG-related tools, metrics and analyses.
- Encourage academic and other research on ESG integration into investment practices.
- Provide internal training and encourage the pursuit of external training on ESG matters for all staff involved in investment decision-making, i.e., investment and risk management professionals, as well as staff engaged in operational and legal due diligence.
- Endorse the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
- Establish a target to decrease the carbon footprint of the Endowment portfolio.
02
PRI Principle
We will be active owners and incorporate ESG issues into our ownership policies and practices.
UTAM Actions
- Adopt a proxy voting policy that takes into account ESG considerations and apply this, where possible, to all public equity segregated account mandates, as well as to public equity funds in which our client portfolios are the only investors.
- Encourage our investment managers to adopt proxy voting policies that take into account ESG considerations.
- Implement a comprehensive program of collaborative engagements and engagements conducted by service providers; the program may also include direct engagements.
- Encourage our investment managers to engage with companies held in their portfolios on ESG matters.
- Engage with governments, regulators and other policy-makers on ESG matters, which we refer to as advocacy.
- Support policy-maker initiatives that contribute to improved ESG practices, including reporting and disclosures.
03
PRI Principle
We will seek appropriate disclosure on ESG issues by the entities in which we invest.
UTAM Actions
- Discuss ESG risks in investment manager portfolios and in relation to particular securities held.
- Ask investment managers to report on ESG-related engagements with companies held in their portfolios.
- Ask investment managers to report on ESG incidents with companies held in their portfolios.
- Support initiatives promoting corporate ESG disclosure.
- Support the CDP’s disclosure campaigns for climate, forests and water.
04
PRI Principle
We will promote acceptance and implementation of the Principles within the investment industry.
UTAM Actions
- Encourage investment managers to become signatories to the PRI.
- Communicate our ESG expectations to investment managers.
- Support the development of tools for benchmarking ESG integration.
- Support legal, regulatory and policy developments that enable implementation of the Principles.
- Assume leadership roles in respected responsible investment organizations.
- Present at conferences and webinars, and publish or contribute to articles in support of the Principles.
05
PRI Principle
We will work together to enhance our effectiveness in implementing the Principles.
UTAM Actions
- Support and participate in responsible investing networks to share information and resources and stay informed about best practices.
- Address relevant emerging issues collectively with other asset owners and investment managers.
- Identify and support appropriate coalitions whose beliefs are aligned with the Principles.
06
PRI Principle
We will each report on our activities and progress towards implementing the Principles.
UTAM Actions
- Disclose how ESG considerations are integrated into our investment process.
- Disclose active ownership activities (e.g., voting, engagement and advocacy).
- Communicate with stakeholders on ESG issues and the Principles.
- Report on progress and achievements relating to the Principles.
- Publish our PRI transparency and assessment reports.
- On an annual basis, publish the details of our responsible investing framework, our activities and progress.
- Provide reporting consistent with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).