Environmental, Social and Governance Investing by College and University Endowments in the United States: Social Responsibility, Sustainability, and Stakeholder Relations

62 Pages Posted: 19 Jul 2012

See all articles by Joshua Humphreys

Joshua Humphreys

Croatan Institute; Tellus Institute

Ann Solomon

Tellus Institute

Christi Electris

Tellus Institute

Catherine Ferrara

affiliation not provided to SSRN

Date Written: July 18, 2012

Abstract

This paper, commissioned and sponsored by the IRRC Institute, analyzes the state of environmental, social and governance (ESG) investing by college endowments, by aggregating multiple datasets addressing three areas of activity: 1) incorporation of ESG criteria into endowment management, 2) shareholder advocacy and active-ownership initiatives, and 3) governance and transparency of ESG activities. Among endowments, we find a weak understanding of ESG investing concepts and practices, due to low participation in investor networks where leading discussions of sustainable, responsible and impact investing occur. We also highlight wide variance within existing data, a general lack of transparency, and numerous problems raised by our independent verification of self-reported data. It appears that far less ESG investing activity is occurring among endowments, despite widespread association of colleges with recent campaigns such as Sudan divestment. In order to understand what activity we do find, we argue that ESG investing by endowments should be understood within the specific context of stakeholder dynamics, which distinguish endowments from foundations and other institutional investors.

Keywords: Endowments, ESG, Sustainability, Responsible Investing, SRI, Impact Investing, Finance

JEL Classification: D82, G23, I22, L31

Suggested Citation

Humphreys, Joshua and Solomon, Ann and Electris, Christi and Ferrara, Catherine, Environmental, Social and Governance Investing by College and University Endowments in the United States: Social Responsibility, Sustainability, and Stakeholder Relations (July 18, 2012). Available at SSRN: https://ssrn.com/abstract=2112158 or http://dx.doi.org/10.2139/ssrn.2112158

Joshua Humphreys (Contact Author)

Croatan Institute ( email )

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Tellus Institute ( email )

11 Arlington Street
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HOME PAGE: http://www.tellus.org/about/Humphreys.html

Ann Solomon

Tellus Institute ( email )

11 Arlington Street
Boston, MA 02116-3411
United States

Christi Electris

Tellus Institute ( email )

11 Arlington Street
Boston, MA 02116-3411
United States
(617) 266-5400 (Phone)
(617) 266-8303 (Fax)

HOME PAGE: http://tellus.org/about/Electris.html

Catherine Ferrara

affiliation not provided to SSRN ( email )

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