| Overall Rating | Silver - expired |
|---|---|
| Overall Score | 53.82 |
| Liaison | Holli Fajack |
| Submission Date | Jan. 29, 2021 |
California State University, Long Beach
PA-10: Sustainable Investment
| Status | Score | Responsible Party |
|---|---|---|
|
1.16 / 3.00 |
Christopher
Reese Assoc Vice Pres, Advancement Operations/Gov Rel University Relations & Development (URD) |
"---"
indicates that no data was submitted for this field
Part 1. Positive sustainability investment
121,136,796.28
US/Canadian $
Value of holdings in each of the following categories:
| Value of holdings | |
| Sustainable industries (e.g., renewable energy or sustainable forestry) | 5,334,734 US/Canadian $ |
| Businesses selected for exemplary sustainability performance (e.g., using criteria specified in a sustainable investment policy) | 38,021 US/Canadian $ |
| Sustainability investment funds (e.g., a renewable energy or impact investment fund) | 0 US/Canadian $ |
| Community development financial institutions (CDFIs) or the equivalent | 0 US/Canadian $ |
| Socially responsible mutual funds with positive screens (or the equivalent) | 4,558,734 US/Canadian $ |
| Green revolving funds funded from the endowment | 0 US/Canadian $ |
If any of the above is greater than zero, provide:
Research Foundation
Sustainable Equity Mutual Fund- Investment strategy invests principally in common stocks of large and medium capitalization U.S. companies. Pursues a “sustainable” investment strategy that takes into account environmental, social and governance (“ESG”) considerations. The Fund's investment strategy seeks to tilt the portfolio toward companies that are expected to contribute to, and benefit from, a transition to a low carbon emission producing economy and away from companies with the greatest exposure to potential negative impacts of such a transition.
Fund highlights
Pursue long-term capital growth while supporting companies that are making a positive impact on the environment and society.
Combines security selection of active ‘sustainable-friendly’ managers with a rules-based quantitative ESG overlay.
Seeks to invest in stocks of higher quality, low volatility companies with defensive positioning relative to U.S. equity market.
Additional contributing Businesses - Adobe, Cisco, Microsoft, Nvidia
49er Foundation
Through an Outside Chief Investment Officers, the CSULB 49er Foundation manages an ESG/SRI endowment fund which utilizes the Morgan Stanley “Investing with Impact Framework” across public and private markets, differentiated by approach to shareholder engagement. The framework includes:
• RESTRICTION SCREENING: Manage exposures by intentionally avoiding investments that generate revenue from objectionable activities, sectors or geographies.
• ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) INTEGRATION: Proactively consider ESG criteria alongside financial analysis to identify opportunities and risks during the investment process.
• THEMATIC EXPOSURE: Focus on themes and sectors dedicated to solving sustainability related domestic and global challenges.
• IMPACT INVESTING: Allocate to funds focused on private enterprises that are structured to deliver specific positive social and/or environmental impacts.
Morgan Stanley classifies assets based on general characteristics such as: income generation, underlying capital structure, or exposure to certain market sectors. As many assets contain characteristics of more than one asset class, allocations may be under or over inclusive. These classifications do not constitute a recommendation and may differ from the classification of instruments for
regulatory or tax purposes. In addition, the Other asset class contains securities that are not included in the various asset class classifications. This can include, but is not limited to, non-traditional investments such as some Equity Unit Trusts, Index Options and Structured Investments issued outside of Morgan Stanley. Additionally, investments for which we are unable to procure market data to properly classify them will appear in the Other category.
Currently the CSULB 49er Foundation ESG/SRI screened investments include:
ClearBridge Large
ClearBridge Large Value
iShare KLD 400
Neuberger Berman
Great Lakes SMidCap
ClearBridge Intl Grwth
UBS Intl Sustain Eqty
iShares ESG Aware
Calvert Emerging Mkts
iShares BC Short
BlackRock Low
TIAA-CREF Core Impact
CRA Qualified
Pax High Yield Bond Fd
Western Macro Opp Fd
American Beacon AHL
Blackstone Alt
BlackRock Event Driven
John Hancock Seaport
Sustainable Equity Mutual Fund- Investment strategy invests principally in common stocks of large and medium capitalization U.S. companies. Pursues a “sustainable” investment strategy that takes into account environmental, social and governance (“ESG”) considerations. The Fund's investment strategy seeks to tilt the portfolio toward companies that are expected to contribute to, and benefit from, a transition to a low carbon emission producing economy and away from companies with the greatest exposure to potential negative impacts of such a transition.
Fund highlights
Pursue long-term capital growth while supporting companies that are making a positive impact on the environment and society.
Combines security selection of active ‘sustainable-friendly’ managers with a rules-based quantitative ESG overlay.
Seeks to invest in stocks of higher quality, low volatility companies with defensive positioning relative to U.S. equity market.
Additional contributing Businesses - Adobe, Cisco, Microsoft, Nvidia
49er Foundation
Through an Outside Chief Investment Officers, the CSULB 49er Foundation manages an ESG/SRI endowment fund which utilizes the Morgan Stanley “Investing with Impact Framework” across public and private markets, differentiated by approach to shareholder engagement. The framework includes:
• RESTRICTION SCREENING: Manage exposures by intentionally avoiding investments that generate revenue from objectionable activities, sectors or geographies.
• ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) INTEGRATION: Proactively consider ESG criteria alongside financial analysis to identify opportunities and risks during the investment process.
• THEMATIC EXPOSURE: Focus on themes and sectors dedicated to solving sustainability related domestic and global challenges.
• IMPACT INVESTING: Allocate to funds focused on private enterprises that are structured to deliver specific positive social and/or environmental impacts.
Morgan Stanley classifies assets based on general characteristics such as: income generation, underlying capital structure, or exposure to certain market sectors. As many assets contain characteristics of more than one asset class, allocations may be under or over inclusive. These classifications do not constitute a recommendation and may differ from the classification of instruments for
regulatory or tax purposes. In addition, the Other asset class contains securities that are not included in the various asset class classifications. This can include, but is not limited to, non-traditional investments such as some Equity Unit Trusts, Index Options and Structured Investments issued outside of Morgan Stanley. Additionally, investments for which we are unable to procure market data to properly classify them will appear in the Other category.
Currently the CSULB 49er Foundation ESG/SRI screened investments include:
ClearBridge Large
ClearBridge Large Value
iShare KLD 400
Neuberger Berman
Great Lakes SMidCap
ClearBridge Intl Grwth
UBS Intl Sustain Eqty
iShares ESG Aware
Calvert Emerging Mkts
iShares BC Short
BlackRock Low
TIAA-CREF Core Impact
CRA Qualified
Pax High Yield Bond Fd
Western Macro Opp Fd
American Beacon AHL
Blackstone Alt
BlackRock Event Driven
John Hancock Seaport
Percentage of the institution's investment pool in positive sustainability investments:
8.20
Part 2. Investor engagement
Sustainable investment policy
Yes
None
A copy of the sustainable investment policy:
None
The sustainable investment policy:
https://www.csulb.edu/sites/default/files/groups/49er-foundation/socially_responsible_investment_19.pdf
https://asicsulb.org/corporate/documents/discover/policies/policy-on-investment.pdf
https://asicsulb.org/corporate/documents/discover/policies/policy-on-investment.pdf
None
Does the institution use its sustainable investment policy to select and guide investment managers?:
Yes
A brief description of how the sustainable investment policy is applied:
49er Foundation
The CSULB 49er Foundation utilized Morgan Stanley Graystone Consulting as an Outside Chief Investment Officer. The Sustainable Investment Portfolio is managed by MS Graystone according to the Socially Responsible Investment Policy.
Research Foundation
The sustainable investment policy is applied through the use of outsourced investment managers whose policy is to incorporate responsible investing in their investment manager evaluation process and portfolio management.
ASI
In line with its desire to invest in companies and institutions that “protect human health and the environment and promote sustainable development,” the ASI Board of Directors has adopted a resolution calling for the corporation to divest from fossil fuel companies, as defined in this policy (Section 7.1).
The CSULB 49er Foundation utilized Morgan Stanley Graystone Consulting as an Outside Chief Investment Officer. The Sustainable Investment Portfolio is managed by MS Graystone according to the Socially Responsible Investment Policy.
Research Foundation
The sustainable investment policy is applied through the use of outsourced investment managers whose policy is to incorporate responsible investing in their investment manager evaluation process and portfolio management.
ASI
In line with its desire to invest in companies and institutions that “protect human health and the environment and promote sustainable development,” the ASI Board of Directors has adopted a resolution calling for the corporation to divest from fossil fuel companies, as defined in this policy (Section 7.1).
Proxy voting
No
None
A copy of the proxy voting guidelines or proxy record:
---
None
A brief description of how managers are adhering to proxy voting guidelines:
N/A
Shareholder resolutions
No
Examples of how the institution has engaged with corporations in its portfolio about sustainability issues during the previous three years:
N/A
Divestment efforts and negative screens
Yes
A brief description of the divestment effort or negative screens and how they have been implemented:
49er Foundation
MS Graystone provides direction to the 49er Foundation Finance & Investment Committee on fund managers to be removed from a portfolio based on Morgan Stanley negative screening.
ASI
ASI investment managers are hereby instructed to stop any new investments in fossil fuel companies.
2) That, for any ASI investments in commingled funds that are found to include fossil fuel companies, ASI investment managers will contact the fund managers and request that the fossil fuel companies be removed from the funds.
3) ASI investment managers will take appropriate steps to ensure that by January 1, 2019 none of ASI’s directly held or commingled assets include holdings in fossil fuel public equities and corporate bonds as determined by the Carbon Tracker list; and
4) ASI investment managers shall pursue investment opportunities that would mitigate or limit the effects of burning fossil fuels, such as renewable energy, clean technology, and sustainable communities, with an emphasis on investments that would support local projects and local jobs.
MS Graystone provides direction to the 49er Foundation Finance & Investment Committee on fund managers to be removed from a portfolio based on Morgan Stanley negative screening.
ASI
ASI investment managers are hereby instructed to stop any new investments in fossil fuel companies.
2) That, for any ASI investments in commingled funds that are found to include fossil fuel companies, ASI investment managers will contact the fund managers and request that the fossil fuel companies be removed from the funds.
3) ASI investment managers will take appropriate steps to ensure that by January 1, 2019 none of ASI’s directly held or commingled assets include holdings in fossil fuel public equities and corporate bonds as determined by the Carbon Tracker list; and
4) ASI investment managers shall pursue investment opportunities that would mitigate or limit the effects of burning fossil fuels, such as renewable energy, clean technology, and sustainable communities, with an emphasis on investments that would support local projects and local jobs.
Approximate percentage of endowment that the divestment effort and/or negative screens apply to:
5
Investor networks
No
None
A brief description of the investor networks and/or collaborations:
N/A
Optional Fields
Additional documentation to support the submission:
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Data source(s) and notes about the submission:
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The information presented here is self-reported. While AASHE staff review portions of all STARS reports and institutions are welcome to seek additional forms of review, the data in STARS reports are not verified by AASHE. If you believe any of this information is erroneous or inconsistent with credit criteria, please review the process for inquiring about the information reported by an institution or simply email your inquiry to stars@aashe.org.