University of Wisconsin-Oshkosh
PAE-T2-8: Sustainable Investment Policy

SWIB recognizes that good corporate citizenship can enhance shareholder value and thus reviews and votes all shareholder resolutions that address social, environmental or political issues. As with other corporate governance issues, the focus of SWIB’ response to these issues is to protect and enhance long‐term investment return. SWIB’ philosophy is that companies with socially unacceptable products, by‐products or practices will feel the economic effect of public disapproval. This, in turn, will result in a weakened performance for the company. The economic and financial analysis that SWIB staff conducts on investments includes an assessment of the potential effect of social issues on the company’s long‐term financial success. Voting proxies or taking other measures for the sole purpose of promoting social or political goals is unacceptable to SWIB and would be inconsistent with its responsibilities under the law. For these reasons, The Board of Trustees, however, has taken the position that SWIB has a legitimate reason to express its concerns about issues that could have a significant financial impact on shareholder return and the company’ long‐term sustainability. SWIB staff monitors these issues and receives information from independent services to assist in evaluating the financial impact of individual socially relevant resolutions on a company. Based on these principles, SWIB normally supports management on resolutions concerning the “ordinary business of the company,”issues that are best handled by the company’ management, and votes against the resolutions. The board, however, has recognized certain social issues that have the potential for financial ramifications. In these instances, SWIB will vote for the resolution if management’ position: (1) would have an adverse effect on the basic human rights of its employees and goodwill both in the United States and other countries in which the company operates; (2) would disadvantage the corporation relative to other corporations; (3) may place the company in violation of federal or international law; and (4) would not support equal and fair employment practices for all employees. In addition, SWIB will support requests for additional disclosure if the requested information is relevant to the company’ business, is of value to a majority of its shareholders, can be produced at a reasonable cost and will not disadvantage the company either competitively or economically.