How does endowment investment relate to sustainability?
Endowment investment decisions are an expression of universities’ financial values and priorities. Schools that own stocks in corporations have shareholder rights and responsibilities, including the right to engage in constructive dialogue with corporate executives. In addition, they can vote and introduce shareholder resolutions, which are included in corporations’ annual proxy statements. Universities are substantial investors, with combined endowment assets of more than $400 billion. As such, they can be influential in improving corporate policies. Also, since endowments are comprised of diversified holdings, universities can optimize their returns while spurring improvement in energy efficiency and innovation in sustainable technology development.
