University of Colorado Boulder
PA-14: Sustainable Investment

Venture capital firm #1 provides start-up capital and operating leadership to companies in the clean energy, digital media (IT), and life sciences sectors. Recent investments have largely been weighted to the clean technology sector. Venture capital firm #2 provides growth capital for mid to late stage venture companies within the clean technology and life sciences sectors. Private equity firm #1 makes mezzanine and equity investments in energy and energy-related infrastructure, which include investing in clean energy, coal mining, and fuel additives. Private equity firm #2 seeks to create a sizable portfolio of land and livestock enterprises (sheep and cattle) and, subsequently, use technology and advanced herd management techniques to improve efficiencies of pasture-land operations.

Per the University of Colorado Foundation Shareholder Responsibility Guidelines, "The University of Colorado Foundation, to the degree to which it can reasonably evaluate the impact of a proposition, will attempt to vote for propositions which seek to eliminate or reduce the social injury caused by a company's activities to the degree that there is no negative economic impact to the Foundation's assets."

The University of Colorado Foundation adheres to a Sudan Divestment Policy. As part of that policy, a negative screen of the entire investment pool is conducted annually. Securities that would be in violation of the policy are identified and managers are then formally asked in writing to sell positions that violate the terms of the policy. This has been done in writing on more than one occasion over the last three years.

The goal of the Sudan Divestment Policy is to allow for maximum impact on the government of Sudan while minimizing harms to both Sudanese citizens and portfolio returns. The implementation of the Policy utilizes a third-party database, the EIRIS Conflict Risk Network (http://crn.eiris.org/), which identifies companies that meet the following targeted Sudan divestment criteria: 1. Have a business relationship with the government or a government-created project; 2. Impart minimal benefit to the country’s underprivileged; and 3. Have demonstrated no substantial corporate governance policy regarding the Darfur situation. The Foundation’s investments are screened for the inclusion of any offending securities. As necessary, the Foundation then provides notice to any investment managers within the portfolio that hold any of the offending securities and requests that the securities be divested. The Foundation’s Long-Term Investment Pool has been successful in reducing exposure to offensive securities to 0.05%, well below the target limit of 0.50%.

Per the University of Colorado Foundation Shareholder Responsibility Guidelines, "The University of Colorado Foundation, to the degree to which it can reasonably evaluate the impact of a proposition, will attempt to vote for propositions which seek to eliminate or reduce the social injury caused by a company's activities to the degree that there is no negative economic impact to the Foundation's assets."

The University of Colorado Foundation adheres to a Sudan Divestment Policy. As part of that policy, a negative screen of the entire investment pool is conducted annually. Securities that could be in violation of the policy are identified and managers are then formally asked in writing to sell positions that violate the terms of the policy. This has been done in writing on more than one occasion over the last three years.

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