Pitt’s Consolidated Endowment Fund ESG Report, 2021-22
Highlights from the University’s second report on how environmental, social, and governance (ESG) factors are used in management of the Consolidated Endowment Fund (CEF).
The University of Pittsburgh’s Office of Finance has released the second “Consolidated Endowment Fund Environmental, Social and Governance Report.” The Fiscal Year 2022 report continues to enhance transparency regarding the CEF — and implementation of University’s ESG Policy.
Some key points in the FY22 CEF ESG Report:
- External investment managers overseeing ~87% of the CEF by value have formal ESG policies in place or take ESG considerations into account when making investments.
- Total CEF exposure to fossil fuels increased from 5.9% in FY21 to 8.1% (as of June 30, 2022). 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.” Prices for oil and natural gas increased 47% and 73%, respectively, during the same 1-year period.
- The University continues to explore sustainable investments that might enhance risk-adjusted financial returns while advancing sustainable outcomes.
Read the original Pittwire article.
History
The FY22 CEF ESG Report is the latest chapter in Pitt’s environmental and socially responsible investing (SRI) journey, which dates back to the 1970s and is detailed in the “Equity & Access” section of the 2018-22 Progress Report on the Pitt Sustainability Plan.
Pitt does not currently have a separate SRI or ESG Committee. All CEF investment decision-making is governed by the BOT’s Investment Committee (including Trustee members, and faculty, staff, and student representatives) and the Office of Finance.
The Office of Finance continues to meet with various student organizations and speak at various University forums to enhance overall awareness and improve dialogue about Pitt’s CEF and its approach to ESG.