Principles for Responsible Investment (PRI)

PRI logo

UTAM is a signatory, on behalf of the University of Toronto, to the United Nations–supported Principles for Responsible Investment (PRI) – a set of commitments adopted by institutional investors around the globe as they integrate ESG considerations into their investment processes. The PRI framework has guided the development of our Responsible Investing Policy and informs the regular deliberations of our Responsible Investing Committee. Doug Chau, our Chief Risk Officer, is on the PRI’s Asset Owner Advisory Committee, which provides advice, tools and support to asset owners implementing the PRI.


PRI Principles

Guided by the PRI framework in our approach to responsible investing, UTAM undertakes, where relevant and material, the following non-exhaustive list of actions:

01

PRI Principle

We will incorporate ESG issues into investment analysis and decision-making processes.

UTAM Actions

  • Assess ESG-related risks across all portfolios
  • Integrate consideration of ESG factors into our external manager selection and monitoring policies and processes, and into other relevant policies and processes
  • Support the development of ESG-related tools, metrics and analyses
  • Encourage academic and other research on ESG integration
  • Provide internal training, and encourage the pursuit of external training on ESG matters for all staff involved in investment decision-making, including our investment professionals 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 Pension and Endowment investment portfolios

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 engagement program that includes direct engagements, collaborative engagements, and engagements conducted by a service provider
  • 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 ESG disclosure by companies
  • 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 managers
  • Support the development of tools for benchmarking ESG integration
  • Support legal, regulatory and policy developments that enable implementation of the Principles
  • Assume leadership positions in leading responsible investment organizations
  • Speak at conferences, participate in webinars, and publish or contribute to articles in support of the PRI

05

PRI Principle

We will work together to enhance our effectiveness in implementing the
Principles.

UTAM Actions

  • Support and participate in networks and information platforms in order to share tools and pool resources
  • Address relevant emerging issues collectively with other asset owners and 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 issues are integrated within our investment process
  • Disclose active ownership activities (e.g., voting, engagement and advocacy with policy-makers)
  • 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
  • Publish an annual responsible investing report with details on our responsible investing framework and activities
  • Provide reporting consistent with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)

Our Latest PRI Scorecard

In 2020, we participated in our third formal assessment as a signatory of the PRI. Responding to a series of asset-specific modules in the PRI’s reporting framework, we provided data on UTAM’s activities relative to various responsible investing indicators. The resulting report evaluated our progress in implementing responsible investing practices over time, across asset classes and compared to peers at the national and global levels.

As the scorecard below shows, UTAM received six A+ marks for our responsible investing activities in managing the University of Toronto’s Pension and Endowment assets. We scored higher than the median PRI signatory in all relevant categories.

Module NameOur ScoreMedian Score
Strategy & GovernanceA+A
Indirect – Manager Selection, Appointment & Monitoring
Listed EquityA+A
Fixed Income – Supranational, Sub-Sovereign and AgencyA+B
Fixed Income – Corporate Non-FinancialA+A
Private EquityA+A
Direct and Active Ownership Modules
Listed Equity – Active OwnershipA+B

Principles for Responsible Investment Reports

Cover of 2020 Assessment Report for UTAM (re UT Pension)
2020 PRI Assessment Report

U of T Pension Plan

View Report
Cover of 2020 Transparency Report for UTAM (re UT Pension)
2020 PRI Transparency Report

U of T Pension Plan

View Report
Cover of 2020 Assessment Report for UTAM (re UT Endowment)
2020 PRI Assessment Report

U of T Endowment

View Report
Cover of 2020 Transparency Report for UTAM (re UT Endowment)
2020 PRI Transparency Report

U of T Endowment

View Report
View All Reports