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Get the most interesting and important stories from the 黑料吃瓜网 of 黑料吃瓜网.The 黑料吃瓜网 of 黑料吃瓜网 has published its second report on how environmental, social and governance (ESG) factors are used in the management of the 黑料吃瓜网鈥檚 Consolidated Endowment Fund (CEF).
The update to last year鈥檚 inaugural report reflects the 黑料吃瓜网鈥檚 commitment to providing greater clarity regarding how ESG factors are applied in the CEF鈥檚 investment decision-making process. , along with links to the inaugural report and other related documents.
This report is aligned with the 黑料吃瓜网鈥檚 formal ESG Policy, which was adopted in March 2020. It also provides an update regarding the endowment鈥檚 fossil fuel exposure, in response to the recommendation of the Ad Hoc Committee on Fossil Fuels convened by the 黑料吃瓜网鈥檚 Board of Trustees.
Key disclosures
The update explains that total exposure to fossil fuels increased from 5.9% of the CEF as of June 30, 2021, to 8.1% as of June 30, 2022. Chief Investment Officer Jeffer Choudhry explained the increase was primarily attributable to changes in the market value of fossil fuel companies and commodity prices for oil and natural gas and was not the result of new investment activity. 鈥淧rices for oil and natural gas increased 47% and 73%, respectively, during the period, which caused the value of our existing investments to increase,鈥 Choudhry said.
He added that although the 黑料吃瓜网 does not preemptively exclude fossil fuel investments, known as applying a negative screen, the endowment has not made any new fossil fuel investments since February 2021.
Reflecting the 黑料吃瓜网鈥檚 commitment to ESG principles, a new disclosure in the report states that external investment managers currently overseeing 87% of the CEF have formal ESG policies in place or take ESG considerations into account when making investments. 鈥淭his reflects the state of the investment industry, where many managers are already taking certain ESG considerations into account in pursuit of stronger returns,鈥 said Choudhry.
He further added that updates to how ESG factors are applied to the endowment鈥檚 investments will be published annually. 鈥淧itt was one of the first universities to publish an ESG report for its endowment. With this second edition, it remains our goal to enhance awareness and understanding regarding the endowment鈥檚 investment practices,鈥 Choudhry said.
The endowment benefits the 黑料吃瓜网 community
As the 黑料吃瓜网鈥檚 largest financial asset, the endowment supports financial aid, scholarships, faculty positions and research activities.
Choudhry reiterated his and the 黑料吃瓜网鈥檚 commitment to ensuring the endowment investments continue to support responsible business practices, which are integral to producing strong investment outcomes.
鈥淲e will also continue to monitor developments in ESG-related standards, particularly those that have direct financial impact on our investments. As those standards are developed, we will explore incorporating them in our investment process,鈥 Choudhry said.