University of Notre Dame
PAE-T2-8: Sustainable Investment Policy

The Institution has melded social concerns with financial criteria in its investment management program for many years, dating back to the South African apartheid issue in the early 1980s. In 1988, the Institution’s Board of Trustees formalized this process with adoption of a Social Responsibility Investment Policy reflective of the Institution’s mission, which includes three components. First, the Institution excludes from its holdings securities of firms whose actions are contrary to Institutional values. To supplement its internal research about specific companies, the Institution acquires information from an independent research firm with recognized expertise in this area to develop a list of “restricted” securities. Managers are regularly monitored for compliance. Second, the Institution invests in various firms that demonstrate positive social value. Third, the Institution is an active corporate citizen with respect to shares of stock it owns and votes its proxies, as opposed to abstaining, delegating voting authority to investment managers or assigning its proxies to corporate management. Both social issues and corporate governance issues are researched and voted upon.