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Fitzwilliam College: Responsible Investment Policy

The main features of the new responsible investment policy are:

1) Discretionary investment portfolio

The College’s investments are held in the discretionary investment portfolio. The College will apply the following to its investments going forward:

Excluded companies

The College will not invest either directly or indirectly in the following companies:

Fossil fuels

  • Companies involved in fossil fuels (coal or oil, including unconventional oil and unconventional gas) extraction, processing/refining and trading; and

  • Companies involved in electricity production with a generation mix dominated by coal, with a carbon intensity >390 gCO2/kWh.

 

Tobacco

  • Companies involved in the manufacture of tobacco.

 

Defence

  • Companies involved in the manufacture of weapons banned by international conventions and other controversial weapons. Weapons are defined as those products, or key basic components of these products, that have been developed for military purposes and designed to injure/kill. These also include tailor-made components that are components that are developed primarily to be integrated into a weapon system.

 

In relation to fossil fuels companies, the College will apply a meaningful test of excluding companies where 10% or more of a company’s revenue is exposed to the activities.

 

ESG scoring of investments

At least 40% of the College’s investments (in those asset classes where an ESG scoring is possible – currently based on MSCI definition) will achieve at least a ‘leader’ ESG rating (‘AAA’ and ‘AA’). This key performance indicator will be reviewed on an annual basis.

 

Time frame for applying the new policy

The College will apply its new policy to its discretionary investment portfolio on the following basis:

  • The policy will be applied by no later than 31st March 2022 (other than the ‘Private Equity’ category of investment); and

  • For Private Equity investments, the policy will apply by 2028 at the latest or when the current investments mature.

 

Mechanism for implementing the policy

The policy will be implemented through the College’s discretionary investment manager, JP Morgan using an investment criterion developed by Mirova. Mirova is a specialist, B Corp certified investment management company which combines the search for financial performance with environmental and social impact.

 

Strategic allocation of assets

The College intends to review the strategic allocation of assets for its investments over the next 12 months. As part of the review, the College will explore investing at least 50% of its investments allocated to the Fixed Income asset class in ‘green/sustainable’ investments.

 

2) Relationship with financial advisors, financial managers and banks

In relation to the College’s investments, its requirement regarding the financial advisors and managers it works with is that:

  • They should in their investment strategy reflect the College’s responsible investment policy; and

  • Must demonstrate rigorous implementation of (and preferably be signatories to) the UN Principles of Responsible Investment (‘UNPRI’) and show their active commitment to the principles through their engagement with invested companies on ESG matters.

The College expects the banks with whom it works to align with the College’s social and environmental values. The College will engage with its bank, currently Barclays, regarding these values and especially in relation to fossil fuels lending. The College will explore switching its banking arrangements (where possible) if Barclays activities continue to run counter to the College’s values