The University of Windsor defines responsible investing as an approach that integrates environmental, social and governance (ESG) considerations into investment decisions, and is a part of an asset owner’s strategy to incorporate these factors into investment analysis and decision making.
Through its Responsible Investing Policy, the University commits to considering ESG factors when making investment decisions as part of its fiduciary responsibilities to optimize investment returns and manage risk. The purpose of the policy is to set out the responsible investment framework for the University in accordance with guidance from the Principles for Responsible Investment (PRI).
Integration of ESG factors
The integration of ESG factors in investment decisions is primarily done by the University’s investment managers. The University considers the integration of these factors by the managers as part of its regular review of manager performance. ESG factors that are considered important by the University and their stakeholders are listed below, however the University recognizes that this list is evolving, and will be updated over time to reflect emerging themes and trends:
Environmental: Factors relating to a company’s interactions with the physical environment and sustainability. These include but are not limited to climate change, greenhouse gas emissions, extreme weather events, biodiversity loss, resource depletion and pollution, the use of genetically modified organisms, waste management, change in land, water and ocean use, and ocean acidification.
Social: Factors relating to business practices that affect the rights, well-being and interests of people and communities. These include but are not limited to human rights, labour standards in the supply chain, child, slave and bond labour, workplace health and safety, human capital management and employee relations, diversity, relations with local communities, activities in conflict zones including the manufacturing and distribution of weapons to conflict zones, displacement from climate change, geopolitical and other conflicts and their consequences, health and access to medicine, consumer protection and controversial weapons.
Governance: Factors relating to the governance of a company. These include but are not limited to board structure, composition, size, diversity, skills and independence, executive compensation, shareholder rights, stakeholder interactions, transparency, business ethics, bribery and corruption, internal controls and conflicts of interest.
Project to Consider New Focus Area: Human Rights
As a result of stakeholder feedback received in Summer 2024, Administration committed to proposing a possible new focus area, Human Rights, within the Responsible Investing (RI) Policy. Administration also determined that it would prepare a procedure that will allow stakeholders to raise concerns about the University’s investments.
Project Timeline
- Policy update workplan brought to the Board of Governors’ Investment Committee to commence the draft of the Human Rights section for the RI Policy and Procedure for Raising Investment Concerns
- UWindsor partnered with one of the largest ESG consultancies in North America to review RI Policy and draft Human Rights section
October 2024
- Research conducted and six comparable policies identified
- A first draft of RI Policy amendments was proposed for review by Administration, the University's investment consultant, legal advisors and investment managers
November 2024
- Open stakeholder feedback requested on the draft of RI Policy
- Feedback summarized for Investment Committee consideration
Project Status (as of November 20, 2024)
Proposed changes to the Responsible Investment Policy were presented to the Board of Governors' Investment Committee, reviewed and discussed, and then referred to Administration. The University of Windsor remains committed to enhancing transparency in its investment practices. To this end, we are planning to release all components of our responsible investing report by the end of the year and establish a process for addressing concerns about the University's investments as they arise.