RESPONSIBLE
INVESTING

The UBC community is a recognized leader in advancing sustainability in all areas of campus life. As a result, environmental, social and governance (ESG) considerations remain central to UBC Investment Management’s investment process.

OUR
APPROACH

UBC Investment Management is deeply committed to ensuring the principles of responsible investing are embedded in our investment decision making and has been a focus for the organization since 2014. As a signatory to the United Nations supported Principles for Responsible Investment (PRI), we seek to continuously enhance our integration of responsible investing and ESG considerations throughout our investment process, from our asset mix and portfolio construction to manager selection and monitoring.

We believe financial investments and commitments can be used to influence corporate behaviours, protect and ensure basic human rights, and lead to a more inclusive society. We also believe in our ability to use our influence and investments to advance the positive and productive evolution of good corporate governance.

ESG considerations, together with a focus on delivering the financial returns for the funds we manage, help to inform our approach to responsible investing.

In 2020, the firm presented the UBC Board of Governors a comprehensive responsible investing strategy, incorporating metrics and targets where data and reporting were more advanced –– largely related to climate –– while working qualitatively with our investment managers to enhance processes for non-climate social and governance risks where data and reporting were scarce. We report on our progress annually, and our responsible investing strategy will be updated in 2025.

ENVIRONMENT

UBC Investment Management shares the view that climate change is an existential threat to the planet. We are keenly focused on reducing the carbon emissions exposure of the portfolios we manage to mitigate risks to long-term investment returns and align our portfolios with the opportunities arising out of the transition to a more sustainable economy.

On the climate front, as per directives provided by UBC’s Board of Governors, our strategy has focused on reducing climate risks within the portfolio – including transitioning portfolio exposures toward strategies with a lower carbon intensity and enhancing alignment with a low carbon economy.

Climate-related research and data metrics are well-defined, which enable us to quantify risk and establish targets with a high degree of confidence and rigor. We have designed our portfolio in support of UBC’s 45% carbon emissions reduction target by 2030. Our climate performance results can be found here.

SOCIAL

UBC Investment Management has aligned our responsible investing strategy with UBC’s Statements on Responsible Investing, approved by UBC’s Board of Governors in 2023. Under Social metrics, the Statements identify the following priorities: 

  • Human rights (including human rights controversies, human rights policies and indigenous rights policies)  
  • Labour Standards 
  • Worker Health and Safety 
  • Diversity Equity and Inclusion

The challenge with assessing Social risk (including Human Rights risk) within an institutional investing framework, is that currently there is very little data coverage and history to draw upon when forming analysis. Still, managing/mitigating Social and Human Rights risks is a focus for the organization where we take a multi-pronged approach. Some of this work includes:

  • Establishing a list of more than 20 social metrics in the areas of human rights controversies, labour standards and supply chain scores, workforce diversity and more
  • Conducting an annual ESG assessment for each manager using our proprietary Manager Assessment Framework, where we gather info and analyze whether and how each manager has advanced its ESG practices given the latest developments in the ESG landscape.
  • Quarterly manager monitoring meetings and analysis

As per directives from UBC, UBCIM is developing a Human Rights risk framework for the Endowment working with a leading expert in responsible investing practices, as well as using active ownership and influence to help further inform our managers’ efforts in this area. Our holdings disclosure reports can be found here.

GOVERNANCE

UBCIM considers good governance essential for creating long-term value—not just immediate financial returns, but also managing systemic risks that strengthen capital markets and society. Our responsible investing approach acknowledges the importance of active ownership through our investment managers and industry collaboration, reflecting our manager-of-managers model. 

During our due diligence process, we verify that our managers’ proxy voting policies align with industry best practices and the values of the funds we manage. We also actively participate in organizations like the Pension Investment Association of Canada (PIAC) and the Canadian Coalition for Good Governance (CCGG) to help advance strong governance practices.

UBCIM has established governance priorities that align with UBC’s Statements on Responsible Investing, focusing on:

  • Diversity in board structure and composition
  • Reasonable executive compensation
  • Strong shareholder rights
  • Ethics and controls against bribery and corruption

We’ve implemented specific data metrics to monitor these focus areas across our portfolios.