2024/25 Responsible Investment Report

Print | PDF

Background

In November of 2017, the Board of Governors approved six recommendations related to the responsible investment of Laurier’s investment funds:

1. Enhance environmental, social and governance (ESG) risk-management strategies.
2. Develop a responsible investment annual report.
3. Develop a fossil free/impact investing endowment fund.
4. Seek out and create collaborative relationships with other institutions to advance responsible investing/ESG strategies.
5. Continue to support research into the effects of climate change, the sustainability of ecosystems and ESG-related issues.
6. Continue to implement strategies to reduce carbon emissions on campus and promote the principles of sustainability.

These recommendations were an outcome of a comprehensive review of responsible investing which involved various stakeholders across the university.

Updates

Update of the work done since 2017 under each of the six recommendations (updates since last report in bold):

1. Enhance environmental, social and governance (ESG) risk-management strategies.
   • The Investment Oversight Sub-committee, the Joint F&I and Pension committee, and Financial Resources staff received training from Hub Proteus on various responsible investing topics. These topics included Environmental, Social and Governance (ESG), Socially Responsible Investing, and Impact Investing.
   • The investment oversight committee began asking investment managers to provide periodic updates on ESG. As of December 2021, ten of Laurier’s investment managers reported being signatories of the UN PRI (United Nations‐supported Principles for Responsible Investment).
   • All RFPs for investment managers now have questions related to ESG along with shortlist presentations.
   • In June 2021 the Board of Governors approved a motion to set a target of a 40% reduction in the carbon footprint (intensity) for equities held within the University Endowment Fund, to be achieved by the end of 2030 (based on levels as at December 31, 2019). As of Dec. 31, 2021, this target has been achieved.
   • In June 2023, the Board of Governors approved the creation of a Climate Risk Management Working Group, convened for a limited time as a special-purpose working group. The goal of the working group will be to provide recommendations for strategies to address climate risk management and develop the next strategy for responsible investment. The terms of reference were approved in October 2023. The group had its first meeting in February 2024, its final meeting in April 2025, and met eight times before concluding its work by providing several recommendations for the Board of Governors to consider.
   • In June 2024, Laurier committed to developing a policy related to divestment requests. The policy is to consider a range of options including, materiality of requests, what university stakeholders can submit a concern and how many, the appropriate governance paths to respond to concerns, among others. The policy was implemented in November 2024.
   • In June 2025, with a recommendation from CRMWG, the Board of Governors approved a motion to increase the reduction in the carbon footprint (intensity) for equities held within the University Endowment Fund, from 40% to 75%, to be achieved by the end of 2030 (based on levels as at December 31, 2019) and to extend this reduction to the University Sinking Fund. This approach and target would be reviewed every two years for feasibility.
2. Develop a responsible investment annual report.
   
   • Annual reports have been brought forward to the Board since the 2018/19 year.
   • Laurier also developed a responsible investment website under the public accountability section.
   • In June 2024, the Executive Committee on behalf of the Board of Governors approved the public disclosure of investments within the Pension, Endowment and Sinking Funds as an appendix to the Annual Responsible Investing Report, to the holdings level within all pooled funds. A detailed list of investment holdings as of March 31, 2025 is contained in the Pension, Endowment and Sinking Funds table.
   • In June 2025, with a recommendation from CRMWG, the Board of Governors approved a motion to improve the disclosure of responsible investing reporting to the extent possible without compromising proprietory information of the investment managers. This additional disclosure is further detailed in Appendix B.
3. Develop a fossil free/impact investing endowment fund.
   
   • In June 2021 the Board of Governors approved a motion to explore establishing a separate fossil free / impact investment endowment fund.
   • A Statement of Investment Policies and Procedures for the planned fossil free / impact investment endowment fund has been finalized.
   • In April 2022 the Board of Governors approved a motion to retain Jarislowsky Fraser to manage the newly created Fossil Fuel Free Fund through their JF Fossil Fuel Free Fund for Canadian Equities, Global Equites,and Bonds. The initial seeding of this fund occurred in October 2022 in the amount of $4.4 million. The value of the fund as at June 30, 2024 is $5.6 million. Further details about this fund are contained in the Jarislowsky Fraser ESG Report (PDF).
4. Seek out and create collaborative relationships with other institutions to advance responsible investing/ESG strategies.
   
   • Laurier became a member of the Responsible Investment Association in 2019, which will provide the university with an opportunity to collaborate with other organizations on responsible investing and get access to research on the topic.
   • In November 2021, Laurier became a signatory to the Climate Charter signed by other universities in June 2020.
   • In June 2023, the Climate Charter group, in collaboration with the Shareholder Association for Research and Education, developed a standardized ESG questionnaire that was sent out to all investment managers. The results of the survery were shared amongst the Climate Charter group in an effort to refine the questionnaire.
5. Continue to support research into the effects of climate change, the sustainability of ecosystems and ESG-related issues.
   
   • See 6 Below.
6. Continue to implement strategies to reduce carbon emissions on campus and promote the principles of sustainability.
   
   • Laurier continues to be a leader in sustainability on campus and in research, which is detailed in the Sustainability Action Plan 2018-2022, the Strategic Research Plan 2020-2025, and the Laurier Strategy: 2019-2024.

Update on CU200 Exposure

Laurier continues to monitor its exposure to the Carbon Underground 200’s list of publicly traded securities, which identifies 200 of the largest coal, oil and gas publicly traded reserve holders globally:

Investment Managers and Responsible Investment

Laurier’s investments are managed by investment managers in pooled funds and limited partnerships. Many of Laurier’s investment managers have publicly available policies on ESG, and they must report on the topic each year to Laurier’s Investment Oversight Sub-committee.

As of December 2024, nine of Laurier’s investment managers reported as signatories of the UN PRI (United Nations‐supported Principles for Responsible Investment).

The UN PRI is the one of the most well-known organizations in the world for responsible investment, and signatories have committed to working to achieve the following six principles:

1. We will incorporate ESG issues into investment analysis and decision-making processes.
2. We will be active owners and incorporate ESG issues into our ownership policies and practices.
3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
4. We will promote acceptance and implementation of the Principles within the investment industry.
5. We will work together to enhance our effectiveness in implementing the Principles.
6. We will each report on our activities and progress towards implementing the Principles.

Appendix B: Carbon Intensity

Laurier has committed to a 75% reduction in the carbon footprint (intensity) for equities held within the University Endowment Fund and Sinking Fund, to be achieved by the end of 2030 (based on levels as at Dec. 31, 2019). The following is the progress as at Dec. 31, 2024.

Definitions

• Carbon intensity: Tons CO2 equivalent (scope 1 and 2) divided by $ millions CAD invested.
• Original Target: 60% of Carbon Intensity as at Dec. 31, 2019 (i.e. goal is to reduce carbon intensity by 40% of 2019 levels).
• Revised Target: 25% of Carbon Intensity as at Dec. 31, 2019 (i.e. goal is to reduce carbon intensity by 75% of 2019 levels).

All carbon data obtained from Morningstar Sustainalytics and reflect the most recent information available.

Endowment

Sinking Fund