Furman University
PA-9: Sustainable Investment

The Investment Committee and staff support the University’s sustainability initiatives within the context of seeking long-term, risk-adjusted returns as outlined in this policy. While performing research and diligence, investment staff and the consultant will monitor impact opportunities and seek to understand how external investment managers incorporate environmental, social and governance (ESG) factors within the overall investment process.

Furman has initiated a process, through its external consultant, to study and ascertain how each external manager integrates ESG (Environmental, Social, and Governance) factors into their investment processes. The output organizes each manager into a scale of 0-3, in terms of the role of ESG in investment decision-making. As an extension of the aforementioned project, we inventoried each external manager’s exposure to products/services within sustainable energy industries. Furman’s portfolio includes: · Multiple managers which are signatories to the UNPRI initiative: (ex/ Commonfund, Barings, PIMCO, Orion) · Multiple managers that have ESG Policies, ESG Statements, Responsible Investment Policies, Impact Investment Policy, etc.: (ex/ Iridian, Mondrian, Kintbury, Neuberger Berman, Greenspring, Orion, GEM Realty, Juniper, PIMCO, Barings · Incorporates ESG factors into the investment process, but no formal policy: (Westwood, MFS, Silchester, Colchester, Wellington, SSGA In addition, Furman has clean energy holdings (see examples below - unable to publicly specify exact position size and/or manager/company names) in each of the following asset classes: · Public Equity – examples include companies that produce LED lighting, or test equipment for high-efficiency lighting systems. Firms that have a significant portion of their generation mix from wind/hydro. Other examples are renewable pure-plays or have enhanced energy efficiency as part of their revenue streams. · Flexible Capital/Hedged Strategies – small positions in wind turbine manufacturers or wind farms. Also, we have exposure to pollution control firms. · Private Equity/Venture Capital- Commonfund & Greenspring confirmed multiple portfolio funds/companies that have clean energy exposure · Credit/Fixed Income-several small positions in renewable energy companies · Natural Resources-significant exposure in one fund in renewable energy within the International Power segment Currently, Furman’s investment office is performing later-stage due diligence on a dedicated private impact fund.

The overwhelming majority of Furman’s invested assets are via commingled vehicles and therefore, proxy voting is performed by the external investment managers. At least on a quarterly basis, each investment manager or fund shall communicate the following to the University and its investment consultant, who in turn may provide a summary for the University: (i) major changes in the manager’s investment outlook, strategy or portfolio structure; (ii) significant changes in the manager’s ownership, organizational structure, financial condition or senior personnel; and (iii) transactions, holdings and performance reports. Managers of long-only security strategies should be prepared to report corporate action and proxy voting records if requested.

To share best practices surrounding all areas of investment management, Furman’s investment office networks with multiple investor networks: other college & university investment offices, consultants, involvement on the editorial board of The Investment Institute, attendance at institutional investor conferences where ESG topics are often discussed in panel format, etc.