Colonial First State Prepared to Dump Managers ‘Lagging’ on Climate Change & ESG l Financial Review

• Colonial First State (CFS), the wealth arm of Commonwealth Bank of Australia, has warned the fund managers it invests with to take the financial risks of climate change seriously or risk being dumped. Scott Tully, head of investments at CFS, which manages $87 billion on behalf of nearly 1 million superannuation fund clients, said the findings were lower than the wealth manager had hoped.

Goldman Throws Its Hat in the ESG Ring l Investopedia

• Goldman Sachs Asset Management (GSAM), Goldman's asset management unit and the firm's ETF department, filed plans with the Securities and Exchange Commission (SEC) to launch an ETF tracking an index from JUST Capital Foundation that tracks companies with just business practices. Goldman “said earlier this year it had surpassed $10 billion in assets tied to ESG investing strategies, up from about $200 million when it acquired impact investing boutique Imprint Capital in 2015,” reports Bloomberg.

Will 2018 Be The Year Investors Focus on Climate-Related Risk? l Market Watch

• In 2018, investors may care as much about a company’s carbon footprint as they do its product lineup. That’s according to an analyst at Morningstar, who predicted that issues related to climate change would be one of the primary trends in so-called “sustainable” investing this year.

Jeremy Grantham and Lucas White on Climate-Change Investing l Advisor Perspectives

• Jeremy Grantham co-founded GMO in 1977 and is a member of GMO’s Asset Allocation team, serving as the firm’s chief investment strategist. Along with his wife, Hannelore, he runs the Grantham Foundation for the Protection of the Environment. Lucas White is the lead portfolio manager for the GMO Climate Change Strategy and a member of GMO’s Focused Equity team. In this Q&A, they discuss the opportunities and risks related to climate change related investments.

Pipelines Protests will Likely Heat Up in 2018 l Vice News

• This past year saw wins for pipeline companies that had projects approved in Canada and the U.S., but an end to construction as usual as opponents stalled new projects — something that’s likely to heat up in 2018. The problem of climate change became more severe in 2017, with historic flooding, wildfires consuming western North America, and massive deadly hurricanes sweeping the Atlantic. And as climate change intensified, the fossil fuel divestment movement gained steam, securing concrete victories by the end of the year.

On Its 100th Birthday in 1959, Edward Teller Warned the Oil Industry About Global Warming l The Guardian

• At an American Petroleum Institute symposium in 1959 over 300 government officials, economists, historians, scientists, and industry executives were warned about the contributions the oil industry could make to climate change.This early history illuminates the American petroleum industry’s long-running awareness of the planetary warming caused by its products. 

Mega-gifts Are Rising and Alumni Giving Is Shrinking. Which Means What, Exactly? l Inside Philanthropy

• A new survey by Marts & Lundy, a fundraising consulting firm, looks at giving at the higher education level and presents a mixed bag for campus fundraisers. On one hand, "mega-gifts"—those exceeding $10 million—topped $6 billion in total for the first time. On the other hand, giving at the middle of the "gift pyramid" has dropped off somewhat, suggesting fundraisers are having a difficult time engaging younger alumni and growing the donor base. This article takes a deeper dive into the moving parts behind this shift and explores what it means moving forward.

Eluding the Endowment Tax l Inside Higher Ed

• This article outlines how, despite unknowns, colleges and universities are looking at investment and spending strategies to dodge a new tax on net investment earnings.

Estimating the Endowment Tax’s Future l Inside Higher Ed

• An economics professor at Wellesley College has run some numbers to come up with preliminary estimates on how many more colleges will be paying an excise tax in the revamped tax code in five years, 10 years or 15 years. The result: the number of institutions subject to the endowment tax could grow to a range of 31 to 41 in five years, depending on the speed at which endowments grow. Between 41 and 61 institutions could have to pay the tax in 10 years, and between 55 and 80 could have to pay it in 15 years.

The University of Chicago and Northwestern May Avoid New Endowment Tax For Now l Chicago Tribune

• Northwestern University and the University of Chicago may get a reprieve from paying an endowment tax under the new federal tax overhaul, but both could end up shelling out millions in the near future. The legislation imposes a 1.4 percent tax on net investment income at private colleges and universities with more than 500 students and where the market value of endowments equals more than $500,000 per student. At $7.82 billion and $9.8 billion, respectively, the schools carry some of the largest endowments in the country.

The College Endowment Tax is More Dangerous Than You Think (Opinion) l Huff Post

• This article outlines why the college endowment tax merits special attention, highlighting how the bill imposes an excise tax of 1.4% on colleges with endowments worth over $500,000 per student.

Why the University of Illinois Is Investing in Farmland l Bloomberg

• Ellen Ellison, CIO of the University of Illinois Foundation, is aiming to make farmland about 10 percent of the $1.8 billion endowment portfolio she oversees. Part of the strategy is to draw more gifts of land. As a financial asset, land has done well for U of I. They also provide some diversification.

New York Governor Seeks Fossil-Fuel Divestment, But Comptroller Has Other Plans l Wall Street Journal

• Gov. Andrew Cuomo said he will push for the state pension fund to divest from fossil-fuel companies, but the official who controls the fund says the best way to address climate change is by leveraging shareholder power. The governor is creating a plan for divesting the New York State Common Retirement Fund from fossil-fuel investments as part of his 2018 agenda, he said. 

Cuomo is Right on Fossil Fuel Divestment (Opinion) l Times Union

• According to the author of this opinion piece, NY Governor Cuomo has stepped into the comptroller's shoes because the comptroller has walked away from his fiduciary obligation with regard to fossil fuels. If DiNapoli heeds this call for action, there is still time for the New York governor, comptroller and state attorney general to lead the nation. 

Considering Fossil Fuel Divestment at the Alaska Permanent Fund Corporation (Opinion) l Daily News-Miner

• Last month, The Alaska Climate Action Network drafted a petition calling on the Board of Trustees of the Alaska Permanent Fund Corporation to divest the fund from its fossil fuel assets. With little fanfare or press, the petition garnered 240 signatures in time for a Dec. 12 meeting in Anchorage.  After the Dec. 12 meeting, the Alaska Permanent Fund Corporation Board of Trustees directed its staff — in a historic move — to prepare an ESG Investment session for a future board meeting.

Clean Technica Divestment Year in Review 2017 l Clean Technica

• This article reviews the biggest divestment stories of 2017, highlighting the major institutions around the globe that divested from fossil fuels and exploring the current rhetoric on the subject.