Pitt’s Consolidated Endowment Fund ESG Report, 2022-23
Highlights from the University’s third 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 third “Consolidated Endowment Fund Environmental, Social and Governance Report.” The Fiscal Year 2023 report continues to enhance transparency regarding the CEF, implementation of University’s ESG Policy, and provides an update regarding the endowment’s fossil fuel exposure, in response to the recommendation of the University Board of Trustees Ad Hoc Committee on Fossil Fuels.
Learn more about the evolution of this report below and on the CFO’s website.
Some key points in the FY23 CEF ESG Report:
- It remains the University’s core belief that supporting responsible business practices is integral to producing strong investment outcomes.
- Total exposure to fossil fuels within the CEF was 8.2% as of June 30, 2023, which represents a 0.1% increase from the prior year. The slight increase was not the result of new investment activity, but instead attributable to public fund holdings, which are expected to fluctuate over time and are outside the University’s direct control.
- Reflecting the University’s commitment to ESG principles, 93% of external investment managers have formal ESG policies in place or take ESG considerations into account when making investments.
- The University will continue to provide annual ESG updates and monitor developments in ESG-related standards, including exploring incorporating them in the University’s investment process.
Read the original Pittwire article for more details.
History
The FY23 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.
To enhance overall awareness and improve dialogue about Pitt’s CEF and its approach to ESG, the Office of Finance continues to meet with various University stakeholders (including student organizations) and speak at University forums.