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Principles of Responsible Investment (HTML)

Principles of Responsible Investment

McMaster University is a uniquely differentiated research-intensive, student-centered institution dedicated to advancing human and societal health and well-being through evidence-based decision making, research, teaching and learning. We are a globally engaged university and an inclusive community that welcomes students, scholars and collaborations from across Canada and from countries around the world. As an institution committed to upholding academic freedom McMaster aspires to generate significant new knowledge, enable creativity, advance human understanding and promote positive societal and economic impact. We recognize our responsibility to ensure that the University’s investments, and approach as an investor, reflect this overall mission and vision.

Within this overarching framework, the Principles of Responsible Investment document articulates the University’s overall philosophical approach as an investor. Given the diversity of the University community, which encompasses many varied and opposing perspectives and lived experiences, the University’s investments are not intended as an instrument to advance any particular social or political agenda. Accordingly, this document is not intended to be prescriptive about which specific investments will or will not be permitted. The Principles enshrine a commitment to responsible investing based on the University’s role as an institution of higher learning with a collective commitment to advancing human and societal health and well-being.

To achieve these goals, the University has taken the following actions:

The University has a legal obligation to manage its investments in compliance with its fiduciary duties and for the long-term benefit of the teaching and research mission of the institution. In addition, the University consistently reviews its investment activities and policies to ensure it is acting as an informed and responsible investor in alignment with the University’s Statement of Investment Policies and Procedures. The Statement of Investment Policies and Procedures is the primary policy document guiding the investment of University funds, and lays out the key considerations and approach with regard to environmental, social and governance factors.

Given the University’s commitment to responsible and evidence-based investing, McMaster ensures that its Investment Managers are similarly committed to this approach. When a company or investment manager is unable or unwilling to meet the objectives set by the University, the Investment Pool Committee will initiate appropriate action.

As outlined in the McMaster University Act, the University’s investments are the responsibility of the Board of Governors. The Investment Pool Committee reports to the Board and has been delegated several responsibilities for managing McMaster’s investments. The University’s Statement of Investment Policies and Procedures puts the University’s commitment to responsible investing into action.

McMaster is committed to the following responsible investing principles:

  1. McMaster’s mission and vision will provide the starting point for considering investment strategy and action.
  2. All investment decisions will be evidence-based and consider environmental, social, and governance issues along with risk and return factors as a part of its fiduciary duty.
  3. The University will engage with its fund managers to ensure alignment with the University’s commitment to environmental, social and governance issues in investment decisions and influence as an investor.
  4. The University will communicate openly and transparently with the community around its investments and investment targets and will support open discussion and debate.

This document will be reviewed annually by the Investment Pool Committee and Planning and Resources Committee. The Board of Governors will review the document at a minimum every five (5) years.

Related Investment Documents

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