We are excited to announce the launch of the Anthony Cortese Fellowship Fund, which preserves his legacy of mentorship and leadership in sustainability. The Fellowship Fund will support 4-6 fellows annually, including students and early-to-mid-career professionals from underrepresented backgrounds in finance.

Learn more about the fund in our recent blog post, donate to support the next generation of sustainability leaders, and don’t forget to register to celebrate Tony’s retirement at our 10th Anniversary Gala in November!

In this week’s news, a Callan Institute Report finds that larger asset manager firms have increased their DEI efforts, CDPQ acquires a 25% stake in Engie-owned UK hydroelectricity provider, and the NZAOA reveals its members emissions cuts are on track to meet Paris Agreement 2050 targets.

December 12, 2024 | 2 pm ET

Register

The December 2024 convening featured perspectives from GSSG Solar who will discuss the unique challenges faced by island economies as they seek decarbonization efforts and the opportunities this unveils.

Participants learned:

• The rapid growth of renewables in Japan and Taiwan and the emerging role scope 3 emissions demands has played in the ongoing demand.
• The burgeoning Battery Storage Energy Systems market and role in decarbonization driven by the role out of successful renewable programs—namely solar.
• The benefits to security, grid reliability, and international cooperation related to the firms model of direct project investments.
• Similarities and differences to US renewables investments in wake of the recent US Elections.

GSSG Solar is a Real Assets investment manager based in Denver, Colorado that entered the Japanese market in 2014 and the Taiwanese market in 2019 to invest in solar and BESS systems as a means to achieve capital appreciation for its investors.

Recording:

Slides

Speaker:

 Tomakin Archambault, Managing Partner, CEO at GSSG Solar, LLC

 Learn more about Tomakin

Felicia Davis,  Co-founder, HBCU Green Fund; Coordinator, Sustainability at Clark Atlanta University

October 15, 2024

On October 15th, IEN and BlackRock explored the innovative capabilities of BSI Intel and how the framework was used by the University of Illinois to create a new ESG strategy that considered material issues. Shortly after Illinois signed the Sustainable Investing Act (PA 101-473) into law, the University began working with BlackRock to create a strategy based on risk-adjusted returns rather than exclusions.

Key to this new strategy was the implementation of BSI Intel, a research and technology platform that helped clients identify sustainable and transition risks. Focused on forward-looking sustainability dynamics, BSI Intel identified companies most strategically positioned to benefit from the transition to a more sustainable economy.

The session highlighted the methodology behind the University of Illinois' successful strategy and the key issues the university sought to solve with a new ESG approach. BlackRock also highlighted its proprietary sustainability methodology that selected metrics based on future materiality rather than past performance, along with the utilization of over 11 data sources to deliver actionable insights.

Participants:

• Learned how the University of Illinois developed its strategy after legislation was passed in the state to support ESG integration, and what successes the university's team achieved through a strategy focused on returns rather than exclusions.
• Discovered how BSI Intel’s dynamic framework enabled customizable portfolio solutions aligned with both financial and sustainability objectives.
• Gained insights into the importance of forward-looking materiality metrics and their role in enhancing investment decision-making.

Speakers

Geri Melchiorre, Senior Director of Investments, University of Illinois System.
 Learn more about Geri

 Manling Li, Vice President, BlackRock Sustainable Investing Intelligence (“BSI Intel”)
Learn more about Manling

Jessica Thye, Co-Head of BlackRock Sustainable Investing Intelligence (“BSI Intel”)
 Learn more about Jessica

Christopher Kaminker, PhD, Managing Director, Sustainable Investment Research & Analytics (SIRA); Deputy Head, Sustainable and Transition Solutions Group
Learn more about Christopher

We are pleased to invite higher education administrators and endowment decision-makers on September 30th at 12 pm ET for a virtual Chatham House Rule conversation on stakeholder engagement around conflict-related divestment. Given the topic’s sensitivity, IEN may limit attendance, and participants are expected to uphold confidentiality and engage respectfully.

In this week’s news, As You Sow releases its 2024 Shareholder Impact Review, Endicott announces a sustainability plan to steward the institution through 2030, and Generation Investment Management releases its Sustainability Trends Report.

We’re delighted to announce The Russell Family Foundation achieved a platinum rating through the Endowment Impact Benchmark. The deadline to join this year’s EIB cohort has been extended to September 30th. Endowments and foundations interested in participating or learning more should reach out to Georges Dyer at [email protected].

In this week’s news, Impax’s Charlie Donovan analyzes AI’s double-edged role in the sustainability revolution. We’re looking forward to celebrating Dr. Tony Cortese at IEN's 10th Anniversary Gala, and Georges Dyer speaks to how business-school funds give MBA students a jump on careers in and out of impact investing.

Join us for our next Climate Solutions Investing Series Call featuring Mercator Partners on September 17, 2024, at 2 pm ET. We’ll explore opportunities for direct, high-impact investment in climate management strategies. Register now to hear the manager's perspective on the market.

In this week’s news, the Denver Foundation reviews how investing with diverse asset managers can lead to stronger investment performance, San Francisco State may become the first university to endorse some divestment after Gaza protests, and Inside Philanthropy talks values-aligned investing with Marguerite Casey Foundation CEO Carmen Rojas.

Climate Week NYC 2024 is one of the largest global forums for climate change, gathering leaders from business, government, and civil society to collaborate on climate solutions. For endowed institutions, Climate Week provides critical insights into how sustainable and impact investing can drive climate justice while ensuring long-term financial resilience.

October 29, 2024 | 12 pm ET

IEN’s climate solutions series will focus on opportunities for direct, high-impact investment in climate solutions. Each conversation in this interactive series will focus on a manager or group with a perspective in the market, giving them an opportunity to share their work, what they’re seeing in the space, and explore the range of what’s possible.

The October 2024 call featured perspectives from IEN Member Schroders. Participants joined Kate Rogers, Schroders' Global Head of Endowments and Foundations and heard from two experienced Endowment investors on how they are taking their climate ambition and reflecting it in their investments.

Topics covered commitments and motivations, asset allocation decisions – avoiding harm and allocating to solutions, and action through engagement and advocacy.

She was joined by Joel Beckman from the Cambridge University Endowment Fund to hear how the UK investor is taking climate action on their £4bn Endowment Fund.

She was also joined by William Orum from Capricorn Investment Group, who builds and manages long-term, multi-asset class portfolios, aligned to the unique financial and impact objectives of a range of Endowments, Foundations and families.

Kate highlighted the range of investable climate solutions that Endowments and Foundations are using - with many offering attractive returns, diversification benefits as well as climate outcomes.

Recording:

Speakers:

 Kate Rogers, Global Head of Endowments & Foundation, Schroders

 William Orum, Partner, Capricorn Investment Group

 Joel Beckman, Communications Lead, Cambridge University Endowment Fund

September 17, 2024 | 2 pm ET

IEN’s climate solutions series will focus on opportunities for direct, high-impact investment in climate solutions. Each conversation in this interactive series will focus on a manager or group with a perspective in the market, giving them an opportunity to share their work, what they’re seeing in the space, and explore the range of what’s possible. 

The September 2024 call will feature perspectives from IEN Member Mercator Partners. Mercator Partners is an asset manager dedicated to capitalizing on decarbonization across power supply, manufacturing, transport, and primary production. 

The recent burst of significant near-term incremental data center power demand is accelerating overall US load growth. The Mercator team will look at how the sectors and stakeholders involved generate a "drag-along"/acceleration effect of Renewable Energy, Electrification, and the Energy Transition. They will also speak to a subset of key performing themes, sectors, and companies that are particularly well placed to benefit from this catalyzing effect.

This series is open to IEN Members only and is a part of IEN's Net Zero Endowments Initiative. To learn more about the initiative or to join, please contact Aicha Ly at [email protected].

Speakers:

 
 Florian Leyhausen – Business Development, Mercator Partners

 

 Martin Fransson – Partner & Head of Primary Research, Mercator Partners

 

 Scott Hobart – Partner & Chief Investment Officer at Mercator

Recording:

September 30, 2024 | 9 am PT / 12 pm ET

IEN hosted a virtual conversation for endowment decision-makers to share ideas, best practices, and questions related to engaging stakeholders around conflict-related calls for divestment. 

Participation ws designed for CIOs, investment staff, trustees, investment committee members and administrators. The conversation was be confidential and under the Chatham House Rule, ensuring a safe space for peers to openly share their thoughts and questions. 

The conversation was seeded by 2-3 endowment leaders sharing their experiences and perspectives, followed by an open conversation including space for questions, resources sharing, and examples of effective approaches. 

Recognizing that issues related to conflict -- particularly the ongoing Israeli-Palestinian conflict -- are complex and can generate strong emotional responses from multiple perspectives, the conversation was be guided by a set of ground rules. By registering for this conversation, participants agreed to adhere to the principles of respect, confidentiality, open-mindedness, and constructive dialogue.  

Shareholder engagement and its real-world impacts will be the focus of our upcoming webinar on October 12 with the MIT Sloan Sustainability Initiative. Register to join IEN and researchers Julian Kölbel and Florian Heeb to review the results of a new working paper that sought to answer the question: does engagement with corporations on climate policy deliver tangible results?

In this week’s news, the Kathleen Simpson of TRFF explores 5 ways to redefine philanthropy’s role in the fight against climate change, Ivy League money managers confront renewed demands over Israel, and we review key takeaways for institutional investors following UNCF UNITE.

We’ve extended the deadline to confirm participation in the Endowment Impact Benchmark for 2024! Learn more about the EIB’s first pilot cohort experience, or respond to this email if you're interested in learning more about framework and participation.

In this week’s news, ICCR releases its report on the 2024 proxy voting season, Oberlin College expands its impact investment platform, and the hbcu social impact leaders program is expanding to attract more black students to social impact investing. 

Mission, Impact, and Compliance Monitoring for Investment Policy Statements | Acansa

Speaker

Mary Cahill, CEO & CIO at Acansa Investment Management Group, Former CIO of Emory University 

 September's Investment Governance Initiative Call will feature perspectives from Mary Cahill, former CIO of Emory University and CEO & CIO at Acansa.

Acansa Investment Management Group is a firm that provides outsourced chief investment officer and integrated investment services to nonprofit endowments, foundations, and institutions. The call will dive into the intricacies of investment policy statements: what should be included, what metrics should be used to monitor compliance and effective execution, how to address mission and impact objectives, and why all of this is so important.

An institutional investment process begins with the Investment Policy Statement (IPS) – the critical document that provides the framework for managing the assets and details significant components that guide the process.  After stating the purpose of the fund(s), the IPS should address the return and risk objectives along with the time frame for measurements.  These metrics should be as specific as possible:  absolute or real (net of inflation) return targets, volatility measures, downside risks).  Liquidity constraints need to be included in order to inform the asset allocation policy along with risk and return.

Some organizations have additional objectives to align the funds with their mission/impact goals and these goals should be outlined in the IPS.  Such objectives would specify mission/impact related priorities, targets for risk and return (which may be the same as previously stated), metrics to measure success, and near and long-term target allocations.  Any specific restrictions should also be noted in the IPS. 

The most essential elements for the remainder of the IPS have two necessary components.  First, an Asset Allocation Policy that provides a target percent for each asset class and ranges around each target.  Benchmarks for each class and total fund may also be included.  Second, an outline of the roles and responsibilities for the individuals involved in the decision-making process to ensure good governance.  These individuals (and groups) should include the Board, the Investment Committee, the CFO and/or CIO, and the OCIO.

Documenting these critical factors that have significant impact on results is best practice.  Clarity for the decision makers can lead to effective execution and optimal results.

Participants will learn:

• How institutional investors can integrate mission and impact goals into investment policy statements from their genesis
• Best practices for creating an IPS that addresses critical factors impacting results
• Why allocators need to monitor compliance and effective execution, and which metrics will allow them to do so

Recording

September 12, 2024 | 10 am ET

In a new working paper, MIT Sloan Sustainability Initiative researchers Julian Kölbel and Florian Heeb tackled the question of whether engagement with corporations on climate policy delivers tangible results. This webinar will explore the results of that research, presenting results that were based on a field experiment: real engagement requests were sent to a randomly chosen group of companies.

In addition, the experiment explored the engagement activities of an index provider, an often unexplored mechanism of driving change. The results of the paper, in part, show that there is indeed impact: 21% of companies in the treatment group have committed to setting a climate target, vs. 15% in the control group.

Join this conversation with IEN and the MIT Sloan Sustainability Initiative, in which the authors present the results in detail and discuss their implications.

Participants will:

• Review key takeaways from the research, including that combining investment screens with engagement is a promising driver of tangible impact promising and should be considered more.
• Explore how they might implement a similar field experiment with their own institution, and
• Learn how to use these findings in their communications and thinking around engagement activities

Speaker:

 Julian Kölbel, Assistant Professor for Sustainable Finance, University of St. Gallen

Recording:

Slides

October 23, 2024 | 11 am ET

This webinar with Ethic and As You Sow dispelled prevalent myths surrounding Environmental, Social, and Governance (ESG) investing. The session focused on clarifying misconceptions that could hinder effective sustainable investing and provided actionable insights to support informed decision-making.

Key myths addressed included:

• ESG is a One-Size-Fits-All Framework: Participants explored how ESG principles can be tailored to reflect the unique values and sustainability goals of institutions, fostering personalized engagement and investment strategies.
• Impact Investing Sacrifices Performance: The webinar examined recent evidence, including findings from a Morgan Stanley report, indicating that responsible investing outperformed traditional investment approaches in the first two quarters of 2024.
• Funds Labeled as ESG Are Truly Sustainable: Attendees understood the implications of the 2023 FCA fund naming rule in the UK, which requires many US mutual funds to clarify their sustainability claims, revealing inconsistencies between labeling and actual practices.
• Impact Investing Should Only Focus on Philanthropy: Participants discovered how Ethic and As You Sow assist institutions in aligning philanthropic initiatives with investment portfolios to maximize overall impact.
• ESG is Political and Partisan: The session highlighted how institutions can personalize their investment strategies based on core values while promoting transparency in corporate practices.
• Sustainability Data Is Inadequate: The evolving landscape of sustainability data was addressed, demonstrating its growing reliability and relevance for institutional investors.

This webinar equipped participants with essential talking points and information needed to effectively communicate the benefits of sustainable investing to colleagues, board members, and investment committees.

Participants:

• Gained a comprehensive understanding of the nuances of ESG investing and how to implement tailored strategies within institutional portfolios.
• Reviewed compelling data that underscores the performance advantages of responsible investing.
• Learned effective strategies for aligning philanthropic efforts with investment decisions, enhancing overall institutional impact.

IEN and experts from Ethic and As You Sow hosted this critical conversation, aimed at fostering a deeper understanding of ESG principles and promoting effective sustainable investing practices within institutions.

Recording

Speakers

Claire Quigley, Lead Relationship Manager, Institutions, ETHIC
Learn more about Claire

 Andy Behar, CEO, As You Sow
Learn more about Andy

Kellen Parker, Director of Sustainability Data & Insights, ETHIC
Learn more about Kellen

August 22, 2024 | 11 am ET

The Leadership Now Project's Corporate Guide to Navigating U.S. Political Risk was recently launched to help investors manage the current political landscape. The Guide, with an updated political risk analysis, provides strategies and tools for institutional investors to navigate U.S. political risks and activities, outlining key priorities and best practices.

This IEN webinar with the Leadership Now Project will further explore the Guide's third and sixth sections. The third section of the guide provides questions that investors can use to engage with their investment managers and the portfolio companies in which they invest, about U.S. political risk, manage their own alignment/misalignment considerations, and evaluate oversight of U.S. political risk. The sixth section, an institutional investor checklist, reviews actions that investors may want to consider when evaluating U.S. political risk.

Participants will learn:

• How institutional investors can engage with companies on its political activities
• What resources are available for institutional investors to assess U.S. political risk and corporate political disclosure
• How U.S. political risks can be translated into business risks that held companies and their investors can act on

Recording:

Layna's Slides

Lauren's Slides

Speakers

 Layna Mosley, Professor, School of Public and International Affairs, Princeton University. Learn more about Layna.

 

 Lauren Caplan, Managing Director & Head of Democracy-Aligned Investing, Leadership Now Project. Learn more about Lauren

October 9, 2024 | 3 pm ET

This webinar provided an overview of an oft-ignored component of ESG: corporate financing of elected officials, the direct effects of that on their legislative behavior, and the resulting effects on the legal environment.

Such financing is mainly conducted with an eye on taxes and regulations. As a result, companies with otherwise good ESG scores may support officials and legislation opposed to environmental, social, and governance issues. Keeping track of this element of corporate influence in the world need not be partisan; legislators supporting sustainability and egalitarianism exist across party lines.

As the voting behavior of these officials is measurable, there is a force multiplier opportunity for intentional investors: just as they incentivize portfolio companies to be sustainable and diverse, they can also incentivize those firms’ portfolio politicians to be as well.

Anti-ESG and anti-sustainability pressure often comes from elected officials funded by companies that asset owners invest in, and therefore have influence with. The state of the regulatory and legal environment is a critical component of successful ESG investing at any time due to the immense power of government to support or oppose certain market behaviors. However, it is especially critical now, when these modes of investing have been thoroughly politicized and threatened by legislation.

IEN and Goods Unite Us, an IEN Member, explored how institutional investors can assess the political activity of the companies in their portfolio and use this data to craft actionable engagement strategies.

Recording

We’re excited for our upcoming learning opportunities and we hope you’ll join us. Register to be part of our Juneteenth conversation scheduled for June 18 at 6 pm ET to explore effective ways to enhance endowments and foundations' efforts toward racial justice. The following week, Aligned Climate Capital will present community solar as an opportunity for direct, high-impact investment in climate solutions during our June Climate Solutions Investing Series call.  Learn more and register today!

In this week’s news, institutional investors affirm their support for CA100+, the University of Pennsylvania releases its May 2024 net zero update, and Second Nature releases its Higher Education Complementarity for Climate Action whitepaper.