Advancing Sustainability: 2021 Responsible Investing Report

We’re pleased to announce the release of our 2021 Responsible Investing Report, titled Advancing Sustainability.

As the title suggests, the report details how UTAM supports the University of Toronto’s long-term commitment to sustainability – in part, by integrating environmental, social and governance (ESG) considerations into our investment process. The report also discusses important developments and achievements in our responsible investing practices for the portfolios managed on behalf of the University, including:

  • In October 2021, U of T President Meric Gertler announced new commitments to divest from direct investments in fossil fuels within a year and from indirect investments no later than 2030. UTAM has met the first commitment and has already made significant progress towards the second.
  • U of T, represented by UTAM, became a member of the United Nations–convened Net-Zero Asset Owner Alliance in 2021 – the first university in the world to join the Alliance. This international group of institutional investors is committed to transitioning their investment portfolios to net zero greenhouse gas emissions by 2050.
  • In accordance with the Alliance’s Target Setting Protocol, UTAM has set a new carbon footprint reduction goal of 50% by 2030, using 2019 baseline levels. Importantly, this new goal is based on an expanded portfolio of investments that now includes corporate bonds in addition to equity and equity-like securities.
  • UTAM engaged PwC to undertake a limited assurance review of the calculation of the 2021 carbon footprint. The Limited Assurance Review examined the calculation and reported outcomes based on the 2021 carbon footprint results. PwC’s independent opinion of UTAM’s carbon footprint calculation process and reported results is included in our 2021 Responsible Investing Report.
  • We encourage the wider consideration of ESG factors by engaging with management and boards of companies. We do this primarily through our participation in collaborative engagement groups and by working with EOS at Federated Hermes, a leading stewardship service provider. The report summarizes our engagement activities through EOS.
  • A pillar of our responsible investing approach is choosing external investment managers whose ESG-related practices align with our own. In this report, we profile EMK Capital, a private equity manager investing in European mid-market private companies that are already contributing to the transition to a low-carbon economy or show potential to do so.

“Responsible investing is integral to how we manage U of T’s assets,” says Chuck O’Reilly, UTAM’s President and Chief Investment Officer, “but it’s also an ongoing commitment, requiring continuous refinement of our investment processes. Responsible investing helps us advance the University’s sustainability goals while delivering on our mission of producing strong investment results over the long term.”

Read and download the 2021 Responsible Investing Report.

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UTAM shortlisted for ICGN Global Stewardship Disclosure Award

Concurrent with the release of our 2021 Responsible Investing Report, we are pleased to have again been shortlisted for the International Corporate Governance Network’s Global Stewardship Disclosure Award, for assets under management under £60 billion. The Brunel Pension Partnership, Third Swedish National Pension Fund (AP3) and the Ontario Municipal Employees Retirement System are also on the shortlist alongside UTAM.

The award recognizes excellence in disclosure of investor stewardship policies and practices. Nominees shortlisted were assessed on stewardship disclosures, including stewardship and responsible investment policies, information about engagement efforts, and voting activities. This is our third consecutive year of nomination.

The award winner will be announced on November 16, at the ICGN 2022 Proxy Season Review in London, UK.