Considerations for ESG Policy Development l The Intentional Endowments Network & Cambridge Associates, June 2017
Sound investment policy is important for all investors. The words on paper elaborate purpose of the organization, the objectives of its funds, the governance of decisions, and the most critical risk management beliefs and parameters. The words gain power through the process of policy development and stakeholder engagement on the intersections of these principles, rules, and strategies. The objective of this document is to provide ideas and information that facilitate engagement on, and development of, policies that integrate sustainable investing thinking and criteria.
At the highest level, investors with policies they consider to be effective and broadly supported share some common traits. They have articulated their purpose, priorities, and principles and integrated these pillars within their investment policies and decision criteria. One key to arriving at this point is the investment of time. Effective ESG policy creation requires a process of stakeholder engagement that includes education about and exploration of the sustainable investing thesis, field, and opportunity set.
This resource contains descriptions of the key elements of purpose, priorities, and principles and some examples of language that may be useful for spurring dialogue, thinking, and policy development.
For a shorter overview with sample language for integrating the aims of the Paris Agreement into Investment Policy Statements (IPS), please see 'Sample Language for Integrating the Goals of the Paris Climate Agreement into an IPS.'