Responsible Investing Guidelines
Bucknell University's endowment is its largest financial asset and serves as a perpetual source of financial support for the University's educational mission. The returns generated by the endowment support student financial aid, professorships, and a wide range of academic and extracurricular programs. The endowment is managed by the Investments Committee (Committee) of the University's Board of Trustees with support from the University's Investment Office.
Integration of Responsible Investing Considerations
The Committee has a fiduciary duty to manage the endowment for optimal income and growth on a risk-adjusted basis. In fulfilling this obligation, the Committee is committed to responsible and ethical investment decisions. To this end, relevant environmental, social and governance (ESG) risks and opportunities are considered as part of the overall investment decision-making process based on the belief that supporting responsible business practices aligns with strong investment outcomes. ESG risks and opportunities are to be considered as one part of a comprehensive, overall investment assessment; however, the endowment should not be used as a means to advance any particular political viewpoint or to exert economic pressure for any particular social purpose. The ESG factors considered are those that the Committee believes may directly or indirectly impact the financial performance of an investment. These factors should be applied to all asset classes, sectors and markets where endowment funds are invested.
Environmental factors considered include things such as climate change, management of greenhouse gas emissions, resource depletion, clean water, waste, pollution, biodiversity and deforestation. Social factors considered include things such as human rights, child labor, underserved community development, working conditions and employee relations. Governance matters relate to board diversity and structure, executive pay, accountability and transparency in management matters, bribery and corruption, political lobbying and donations, cyber security readiness and tax strategy.
Investment Managers
The Committee uses third-party managers to invest endowment funds in diversified portfolios aligned with the established asset allocation model. These managers are expected to incorporate material ESG factors into their investment process for endowment funds. The Committee and its advisors regularly engage with managers to discuss their ESG integration practices. This ongoing assessment informs decisions regarding manager retention and performance evaluation.
Company Engagement and Proxy Voting
Unless investing directly in a company or other investment vehicle, the Committee delegates engagement and proxy voting responsibilities to the respective third-party managers overseeing those investments.
Reporting
The Committee reports regularly to the University's Board of Trustees regarding the endowment's investment performance and any specific responsible investing updates necessary. The Committee will also consult with the Board of Trustees' newly formed Special Committee for Buildings, Grounds & Sustainability to ensure that it has the most current ESG and sustainability practices for the University and can communicate those as needed to our third-party managers.
Adopted: April 2020
Revised: January 2023
Revised: November 2024