University of Louisville
PA-8: Committee on Investor Responsibility

Date: 12/4/18 To: Committee members From: Dr. Beth Boehm Executive Vice President and University Provost Re: Appointment to the Committee on Investor Responsibility, University Sustainability Council I am writing to ask you to serve on the Sustainability Council’s Committee on Investor Responsibility for 2019. The work undertaken by the council and the campus community continues to be an important part of the University’s strategic mission, and demonstrates the commitment of the University to a healthier and more sustainable community. The committee is asked to continue its work on and offer advice to me for the University and the University of Louisville Foundation as follows: 1. Shareholder proxy voting that best fits the goals of the institution; 2. Determining whether and under what conditions we should be initiating shareholder resolutions; 3. Supporting our Student Sustainability Fund as a learning opportunity with real-world impact for students to practice applying sustainability principles to both investment and philanthropy; and 4. Developing a sustainable investment policy for the university/foundation as a whole. Additionally, the committee’s duties include those in line with our strategic goal of increasing our rating through AASHE’s Sustainability Tracking, Assessment & Rating System (STARS). In particular the committee will be working to improve performance in the following STARS credit areas: Investment • Committee on Investor Responsibility • Sustainable Investment • Investment Disclosure --------------------------- In 2010-11, UofL had a University-wide Committee on Socially Responsible Investing. The mission of the committee, according to the charge letter from the University Provost dated November 12, 2010, is as follows: "[The University-wide Committee on “Socially Responsible Investing” (SRI)] will make recommendations to the President and [Provost] on financially, socially and environmentally responsible investment opportunities across asset classes and will make other related recommendations as appropriate, including proxy voting. The Committee will have multi-stakeholder representation and provide a structure for fostering dialogue on investment opportunities, to help the UofL Foundation make responsible investments that ensure financial health for UofL while promoting sustainability in the wider world. The Committee will seek investment opportunities that compliment the University’s mission, its resource requirements, and its commitment to sustainability." The committee made its formal recommendations to the administration and then disbanded.

Committee on Investor Responsibility (CIR) Sustainability Council 2018-19 Avery Kolers Faculty Committee on Investor Responsibility Chair; Philosophy Keith Sherman Staff UofL Foundation Molly Baldock Student SGA rep: Vice President of the College of Business; Finance & Political Science Luke Banta Student MBA Finance Club rep Per Fredriksson Faculty Economics David Dubofsky Faculty Finance Marian Vasser (or designee) Staff Staff Senate rep Jessica Marcum Staff Development Associate, Univ. Advancement Rodger Payne Faculty Ex officio; Political Science Justin Mog Staff Ex officio; Assistant to the Provost for Sustainability Initiatives

IN 2016-17, UofL’s new Committee on Investor Responsibility examined the proxy voting guidelines available through ISS and decided that the package which most closely aligns with UofL's mission and goals is the Socially Responsible Investment (SRI) Proxy Voting Guidelines. UofL now uses these guidelines to vote on all shareholder resolutions for companies in which we are directly invested. In 2017-18, the CIR launched a new full-circle, Student Sustainability Fund through which students in a fall Finance class learn about and gain real-world experience with Socially-Responsible Investing during the fall semester; and then, in the spring semester, students in a Social Change class learn about and gain real-world experience with Student Philanthropy to support local projects and organizations working to implement sustainability. On April 6, 2018, the CIR launched an Arbor Day to Earth Day crowdfunding campaign to create the new Student Sustainability Fund. From April 6-22, 2018, friends of UofL were encouraged to help us unlock a donor match: When we raise $5,000 for the Student Sustainability Fund, Just Money Advisors, a Louisville-based company, pledged to give $5,000 towards the fund! Gifts of all sizes helped unlock this matching gift. By supporting the Student Sustainability Fund you are investing in high-value, hands-on education for 21st century social responsibility. The SSF is a unique fund, separate from the rest of the endowment, which uses the fund itself as a pedagogical tool. First, Finance students in the College of Business do some real-world socially responsible investing by selecting funds, investing real dollars, managing the fund, and voting their proxies. All investments and proxy votes will be researched and selected by students, subject to the university’s sustainable investments policy. Then, Social Change students in the College of Arts & Sciences will use the proceeds to fund local nonprofit or philanthropic projects either on or off campus. They research local nonprofits and allocate funds in a way that builds capacity or enhances sustainability. Thus the Student Sustainability Fund puts donors’ resources directly to work for educational enrichment and social change.