Higher Education, Endowments and the Paris Agreement

Higher Education, Endowments and the Paris Agreement

SummaryoftheIntentionalEndowmentsNetwork2016StrategicPlanningSummit

IEN HigherEduca-on,EndowmentsandtheParisAgreement

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INTRODUCTIONThehistoricParisAgreement-agreedtoduringtheDecember2015climatenegotiations–

representsamajorturningpointintheglobalefforttoconfrontclimatechange.This

agreementwillhaveprofoundimpactsonjustabouteveryaspectofoursociety–individuals,

communities,technology,energy,businessmodels,markets,andinvestors.BloombergNew

EnergyFinanceestimatesthatlimitingwarmingto2°Crepresentsa$12.1trillioninvestment

opportunityinnewrenewableelectricpowergenerationalone.

Leadersinhighereducationneedtobeready.Atatimewhenmanyarequestioningthevalue

andrelevanceoftertiaryeducation,collegesanduniversitieshaveanopportunitytoreaffirm

theircriticalrolebyleadingonsustainability,andprovidingtheeducation,research,and

innovationneededforstableandproductivesocieties.Specifically,collegesanduniversities

needtoeducateyoungpeopletobefullleadersinbusiness,governmentandothersectors,

advancetheirresearchonclimatesolutionsandshifttheirendowmentinvestments.

Highereducationhastremendoussocial,intellectual,moral,andfinancialcapitalthatitcan

leveragetoplayacrucialanduniqueroleinensuringtheUSmeetsitsgoalsundertheParis

Agreement.Highereducationhastheopportunitybyplayingaleadingroleinordertoreaffirm

itsplaceasapillarofafreeandproductivesociety.

Thetimeisripe.Over600collegesanduniversitiesareactivelypursuingclimateneutrality

throughtheSecondNatureCarbonCommitment(formerlytheACUPCC)–andmanyhave

madegreatstridesinreducingemissionsoverthepast10years.Thereisnowagrowing

interestinsustainableinvestingamongendowments–andcontinuedcallsforfossilfuel

divestmentamongstudentsandotherstakeholders.Recordnumbersofstudentsaredeclaring

academicinterestinhuman’srelationshiptonaturalsystemsandtheenvironmentaland

energyquestionsthatsurroundit.

Additionally,thereisrenewedenergyamongstakeholdersintheUnitedStatesinresponseto

thecurrentadministration’sclimatechangeskepticism.Morethan1,000businessesand

investorsfrommorethanadozenFortune500firmsaswellassmall,family-ownedbusinesses,

havereaffirmedtheirsupportfromtheParisAgreementandthetransitiontoalowcarbon

economyintheU.S.andgloballybysigninganopenlettertothecurrentadministration1.

FormerNewYorkCitymayorMichaelBloomberghassaidthat“theUS’successinfighting

climatechangehasneverbeenprimarilydependentonWashington,”challengingthe128U.S.

1http://www.lowcarbonusa.org/


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mayorswhoarepartoftheGlobalParliamentofMayorstocollectivelydecidetoenactpolicies

thatwouldputthecountryontracktoachievethegoalsoftheParisAgreement2.

PresidentsandChancellorsfrommorethan230CollegesandUniversitieshavesignedanopen

lettertothenewadministrationcallingonelectedofficialstosupportparticipationintheParis

Agreement,climateresearch,andinvestmentinthelowcarboneconomy3.AsDavidBlood,Co-

founder&SeniorPartneratGenerationManagement,saidwhenspeakingattheIntentionally

DesignedEndowmentForumatLoyolaUniversityChicagoinNovember2016:

“Everythingthatwe'vedonetodaywillneedtochangeprettysignificantlyoverthenext

fivetotenyearsifwearetoachievewhattheParisAccordsetsout,whichistolimit

temperaturerisestolessthan2degreesCelsius...Thiswillbethemostsignificant

economictransitioninhistory.Itisagreatopportunitytodeploycapital,itisa

significantrisk,andithastohappenveryquicklyoverthenextfivetotenyears...We

doneedtomakesurethatwebringbacktofinanceabestpractice,arecognitionthat

financecanbeaforceforgood,andthatweintheinvestmentcommunitycanbe

leadersinthat,andofcourseIcan'tthinkofabetterplacethanacademicinstitutionsto

beleaders."

Highereducationandendowmentshavetheinfluenceandexpertisetobecomeevenstronger

leadersinthetransitiontoalowcarboneconomyandachievementoftheParisAgreement

Goals.OnDecember5th,2016,theIntentionalEndowmentsNetwork(IEN)andtheWorld

ResourcesInstitute(WRI)hostedastrategicplanningsummittoexploreprojectsfocusedon

empoweringhighereducationtoleadthewayinimplementingtheParisClimateAgreement.

Thisreportssummarizesthekeyideasandpotentialnextstepsthatresultedfromthatmeeting.

BACKGROUNDHighereducationhasbeenaleaderinaddressingclimatechangethroughresearchand

education,andbyrole-modelingclimatesolutionsincampusoperationsandthrough

communityengagement.In2007,SecondNature,AASHE,andecoAmericalaunchedthe

AmericanCollege&UniversityPresidents’ClimateCommitment(ACUPCC),throughwhich

presidentscommittheirinstitutionstodevelopingcomprehensiveclimateactionplans,

includingtargetdatesforachievingcarbonneutralityincampusoperations.Tenyearslaterthe

2http://www.businessinsider.com/mayors-could-override-trump-on-paris-accord-2016-113http://secondnature.org/higher-education-climate-action-letter/


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initiative,nowcalledtheSecondNatureCarbonCommitment,consistsofmorethan600

institutions,makinggreatstridesinreducingtheirgreenhousegasemissionsandadvancing

educationandresearchtohelptherestofsocietydothesame.

By2013,thestudentmovementcallingforendowmentstodivestfromfossilfuelinvestments

wasactiveonhundredsofcampusesacrossthecountry.Limitingglobalwarmingtoanincrease

ofnomorethan2degreeCwillrequirereducinggreenhousegasemissionstonet-zero(or

closetoit).Thelogicofthedivestmentmovementwasthatdoingsowouldrenderalarge

portionoftheglobe’sknownoilreserves“unburnable”–withdramaticimplicationsforthe

valueoffossilfuelcompanies,whichwouldbeleftwiththese“strandedassets.”Callsfor

divestmenthavealteredtheconversationonclimateaction.Italsopromptedmanyquestions

fromendowmentadministratorsandfiduciariesabouthowdivestmentmightfitwiththeir

aspirationsaroundsustainability,aswellastheirdutyasfiduciaries.Manyhadconcernsthat

divestmentpoliciesmightreducefinancialreturns,andviolatetheirfiduciaryduty.Otherssee

thisasacriticallong-terminvestmentconsideration,whichtheirfiduciarydutywouldcompel

themtoconsiderandpreparefor.

InApril2014,tohelpcollegesanduniversitiesnavigatethesequestionsHampshireCollegeand

SecondNaturehostedtheIntentionallyDesignedEndowmentForuminCambridge,MA.The

eventbroughttogethersenioradministratorsandtrusteesfromendowmentsandfoundations

withsustainableinvestingexpertstoexplorethewholerangeofstrategiesrelatedto

sustainableinvestingorenvironmental,social,andgovernance(ESG)investing.TheIntentional

EndowmentsNetwork(IEN)grewfromthisinitialmeeting.Itisabroad-based,collaborative

networkwiththegoalofmakingsustainableinvestingthenormatcollegeanduniversity

endowments.TheIENbuildsonthisworktoalignendowmentportfolioswithinstitutional

mission,values,andsustainabilitygoals.Thenetworkworkswithandthroughleadingorganizationsandinitiatives,includingWRI,Ceres,PRI,CDP,SecondNature,theSustainable

EndowmentsInstitute,theResponsibleEndowmentsCoalition,andmanyothers.

OverthepasttwoandhalfyearstheIENhashostedsevenmajorforumsanddozensof

workshopsonthesetopicsandengagedwithoverathousandindividualsathundredsof

institutions.TheIENhasaSteeringCommitteeofmorethanthirtyleadersfromhigher

educationandthesustainableinvestingfieldandseveralactiveworkinggroupsonkeytopics,

includingfinancialperformance,fiduciaryduty,shareholderengagement,andinvestinginclean

energy.


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HIGHEREDUCATION,ENDOWMENTSANDTHEPARISAGREEMENTInearly2016,membersoftheIntentionalEndowmentsNetworkbegandiscussionsaroundthe

implicationsoftheParisAgreementforhighereducationinstitutions–aseducators,knowledge

creators,operatorsofphysicalinfrastructure,stewardsoftheircommunities,andinstitutional

investorsthroughtheirendowments.

Thepremisefortheprojectbeganwiththequestions:“IftheParisAgreementwerebeingfully

implementedfiveyearsfromnow,whatwouldtheworldlooklike?Whatassumptionswould

investorsbemaking?Andhowcanhighereducationandendowmentsusetheirinfluencetoday

toensureasmoothandsuccessfulimplementationofthecommitments?Howcanhigher

educationmaintainitsleadingroleinsocietybymakingsureitsinstitutionsarereadyforthe

future1.5degreeworld?”

Toadvancetheseconversations,wesetouttoconveneadiversegroupofleadingthinkers–

workingonvariousaspectsoftheParisAgreement,sustainabilityeffortsinhighereducation,

andsustainableinvestingbyendowments–fora“StrategicPlanningSummit.”Heldin

December2016,thepurposeofthemeetingwastobrainstormpotentialprojectactivitiesand

identifyopportunitiesforcollaborationandsynergiesamongnon-profits,foundations,

investmentfirms,andcollegesanduniversities.Theaimwastocomeawaywithelementsofa

boldplanfora3-5-yearprojecttoexpand,accelerateandamplifyhighereducation’sclimate

leadershipinsupportoftheParisAgreements.

SUMMARYOFTHESTRATEGICPLANNINGSUMMITDIALOGUEANDKEYPROJECTIDEASAtthemeeting,afterreviewinganddiscussingotherinitiativesrelatedtotheParisAgreement,

eachparticipantintroducedtheirbackgroundandpointofinterestinclimateaction.Theentire

groupdiscussedhowhighereducationcanleadinsupportingtheParisAgreement,reiterating

themessuchascollaborative,cross-sector,systemicchange,extensiveknowledgesharing,

movinglow-carbonconceptstowardsthemainstream,andtheimportanceofleadershipfrom

sub-nationalgovernmentsandtheprivatesector.

Participantsthensplitintosmallergroupstoexploreprevalentfocusareas.Eightmainconcepts

andideasemergedfromthesesmallergroups,asillustratedinFigure1.Oftheseeight

concepts,theideaforaninvestmentframework,investmentpolicystatementlanguage,an

investmentcommitment,andregularconveningeventshadthegreatestimmediatepotential


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toexpand.Thesefourideastoaccelerateandamplifyhighereducation’sclimateleadershipin

supportoftheParisAgreementareexplainedinmoredetailbelow. FIGURE1:IDEASTOACCELERATEHIGHEREDUCATION'SCLIMATELEADERSHIPINSUPPORTOFTHEPARISAGREEMENTS

InvestmentFramework:TheWorldResourcesInstitute(WRI)isdevelopinganinvestment

frameworkandmethodologythatwillenableuniversityendowments’toadvancethegoals

outlinedintheParisAgreementwhilemaintainingrisk-adjustedreturns.Theframeworkwill

addresstherisksandopportunitiesofsustainabledevelopmentandclimatechange,and

ultimatelyaligninvestmentcapitaltowardstheseglobalinitiatives.Theframeworkwillinclude:

• AgeneralinvestmentframeworkforassetownersandtheirCIOs/OCIOs/consultantsto

constructportfoliosinlinewithasustainablefuture.

• Asetofguidance,evaluationandmonitoringcriteriaforassetownerstoevaluatetheir

investmentmanager’sperformanceinthisarea,includingduediligenceguidanceonmanagers’

IdeastoAccelerateHigher

Educajon'sClimate

LeadershipinSupportofthe

ParisAgreements

InvestmentFramework

InvestmentPolicy

StatementLanguage

InvestmentCommitment

Convening

Research

Curriculum

GreenBondsand

SustainableInfrastructure

CollecjveAcjon&

CommunityEngagement


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capacitytointegrateenvironmental,socialandgovernance(ESG)considerationsintothe

investmentdecisionmakingprocess.

• Guidanceforinvestmentmanagersonselectingholdingsthatmeetthedemandsandcriteriaof

theinvestmentframework.

Asaresultofthismeeting,IENwillsupportthedevelopmentofthisframeworkbygarnering

inputfromendowmentsonthedesign,andthedisseminationandtestingoftheframework

amongendowments.

InvestmentPolicyStatementLanguage:Anotherpracticalideathatemergedatthemeeting

wastodeveloptemplatelanguagethatendowmentscanaddtoInvestmentPolicyStatements

toclearlyindicatetheintentofaligninginvestmentswiththeParisAgreement.IENandother

groupscouldthenmakethisavailabletoendowmentsandotherinvestorstoprovideaneasy

wayforinvestmentcommitteestotakethisstep,whilefeelingconfidentthatthelanguage

theyuseisappropriateandhasbeenreviewedbypeersandindustryexperts.Thisresourceis

currentlyunderdevelopment.

InvestmentCommitment:Theideaforacommitmentemergedasawayforassetownersto

demonstratetheirintentanddedicationtoaligningtheirinvestmentswiththegoalsoftheParis

Agreement.Thecommitmentwouldnotbeprescriptive,butmightrequiresignatoriestocreate

aplanthatsetstheinstitution’sinvestmentgoalsinthisareaandcreatesatimelinefor

achievingthem.Institutionsmightreportontheirprogresscomparedtotheirplanannually,

andwouldbeofferedresourcesandsupportastheyworktowardachievingtheirinvestment

goals.Variousversionsofthisideaarecurrentlyunderconsiderationbysomeofthe

participatinggroups.

Convening:Toencourageadoptionamongassetowners,resourcesrelatedtotheParis

AgreementwouldbepresentedtointerestedinvestorsthroughaseriesofCIORoundtable

Eventsonsustainableinvesting.Somewouldtargetuniversityendowments,whileotherswould

bringtogetherabroadersetofinstitutionalinvestors.Theeventswouldincludepractical

discussionsonhowtoimplementsustainableinvesting-fromdesigninganinvestmentpolicyto

monitoringinvestmentoutcomes.Further,theguidance,resources,andframeworksusedor

developedattheseconveningscouldbemadeavailabletootherinvestorsorthepublic,as

appropriate.Severalgroupsfromthemeetingarecurrentlyintheprocessofexploringco-

hostingsuchroundtableeventsin2017.

AnotherinterestingthemethatcameuprepeatedlyattheSummit,andoverthecourseofthe

pastyearexploringthisissuewashowthe17SustainableDevelopmentGoals(SDGs)couldbe

usedasabroaderframeworkforinvestorswhoseethelong-termvalueofintegrating


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environmental,social,andgovernance(ESG)criteriaintotheirinvestmentdecision-making.

WRI’sinvestmentframeworkwillbebuiltouttoencompasstheSDGsovertime,andIENhas

begunusingtheSDGsasanorganizingframeworktocollateresourcesonspecificESGissues.4

CONCLUSIONANDNEXTSTEPSOftheeightmainideasandconceptsthatcameoutoftheStrategicPlanningSummit,IENis

activelydevelopingthefourideasthathadthegreatestimmediatepotentialtoaccelerateand

amplifyhighereducation’sclimateleadershipinsupportoftheParisAgreement.

IENiscurrentlyworkingwithTomMitchellofCambridgeAssociatesandCarlVanceofLewis

andClarkCollegetoproduceaninvestmentpolicystatementlanguageresourcetoactasa

startingpointasendowmentsworktoaligntheirinvestmentswiththeParisAgreement.IENis

alsocurrentlyintheprocessofplanningroundtableeventsfor2017focusedonimplementing

sustainableinvestmentpracticesthatalsosupporttheParisAgreement.WRIisdevelopingan

investmentframeworkforassetownerstoconstructportfoliosthatareinlinewiththeParis

Agreement,alongwithguidanceforinvestmentmanagersonselectingholdingsthatmeetthe

demandsandcriteriaoftheinvestmentframework.WRIandIENareexploringapotential

collaborationonthedevelopmentanddisseminationoftheinvestmentframework.

Highereducationhastremendoussocial,intellectual,moral,andfinancialcapitalthatitcan

leveragetoplayacrucialanduniqueroleinensuringtheU.S.meetsitsgoalsundertheParis

Agreement.Afterbringingtogetheradiversegroupofleadersfromnon-profits,foundations,

investmentfirms,andcollegesanduniversities,IENiscurrentlypursuingfourprojectsthat

togethercaninforma3-5yearplantoexpand,accelerateandamplifyhighereducation’s

climateleadershipinsupportoftheParisAgreement.TheSummitfosteredmanynew

connectionsandopenedupnewavenuesforcollaborationamongtheparticipatinggroupsand

individuals.Wewillcontinuetopursuewaystoadvancetheseconversationsfurther,and

expandthenetworkofindividualsandinstitutionsworkingtosupportsuccessful

implementationoftheParisAgreement.

4 http://www.intentionalendowments.org/sdgs


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ABOUTTHEINTENTIONALENDOWMENTSNETWORKTheIntentionalEndowmentsNetwork(IEN)isabroad-based,collaborativenetworkwiththe

goalofmakingintentionallydesignedendowmentsthenorm.Theorganizershaveasuccessful

trackrecordinleadingtransformationalchangeeffortsforsustainabilityinthehighereducation

sector,includingsecuringclimateneutralitycommitmentsfromthepresidentsofnearly700

institutions.IENbuildsonthisworktoalignendowmentportfolioswithinstitutionalmission,

values,andsustainabilitygoals.

IENhashostedsevenmajorforumsanddozensofworkshopsonthesetopicsandengagedwith

overathousandindividualsathundredsofinstitutions.IENhasaSteeringCommitteeofmore

thanthirtyleadersfromhighereducationandthesustainableinvestingfieldandseveralactive

workinggroupsonkeytopics,includingfinancialperformance,fiduciaryduty,andshareholder

engagement.

TonyCortese|[email protected] |[email protected],IntentionalEndowmentsNetwork

ABOUTTHEWORLDRESOURCESINSTITUTEWorldResourcesInstitute(WRI)isaglobalresearchorganizationthatspansmorethan50

countries,withofficesinBrazil,China,Europe,India,Indonesia,andtheUnitedStates.Our

morethan450expertsandstaffworkcloselywithleaderstoturnbigideasintoactionto

sustainournaturalresources—thefoundationofeconomicopportunityandhumanwell-being.

Ourworkfocusesonsixcriticalissuesattheintersectionofenvironmentanddevelopment:

climate,energy,food,forests,water,andcitiesandtransport.

In2015,WRIlaunchedtheSustainableInvestingInitiativetosupporttheInstitute’seffortsto

mobilizepublicandprivatesectorinvestmentstowardsustainable,inclusive,andlow-carbon

development.UtilizingWRI’sowninvestmentexperience,cuttingedgeresearchanddata,and

conveningpower,theInitiativeisbuildingamovementofinstitutionalinvestorsaligningtheir

investmentswithasustainablefuture.Theprogramdevelopspracticaltoolsandinvestment

frameworkstoinformandfacilitatethemainstreamadoptionofsustainableinvestingamong

institutionalinvestors.

ElizabethLewis HeadofSustainableInvesting,[email protected]


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ACKNOWLEDGEMENTSThedevelopmentoftheHigherEducation,EndowmentsandtheParisAgreementStrategic

PlanningSummitandSummitReportwasacollectiveeffortofmembersoftheIntentional

EndowmentsNetworkandtheWorldResourcesInstitute.Thefollowingpeopleplayedcritical

rolesintheplanningandfacilitatingofthestrategicsummit,aswellasthepreparationofthe

SummitReport:

SUMMITPLANNINGANDFACILITATION

• GeorgesDyer,Principal,IEN

• TonyCortese,Principal,IEN

• BarbaraSimonetti,Conversation

Architect,IEN

• ElizabethLewis,HeadofSustainable

Investing,WRI

• ArielPinchot,ResearchAnalyst,WRI

CONTRIBUTINGREPORTAUTHORS• GeorgesDyer,Principal,IEN

• NicoleHarman,ProgramAssociate,IEN

SUMMITATTENDEES• TimCarter,President,SecondNature

• MeganChappell,DirectoroftheOffice

ofSustainabilityandSeniorAdvisoron

Sustainability,GeorgeWashington

University

• ChristaClapp,SeniorAdvisor,Climate

FinanceLead,Cicero

• ChrisDavis,SeniorProgramDirector,

InvestorProgramLead,Ceres

• KateGordon,ViceChairofClimateand

SustainableUrbanization,Paulson

Institute

• AmyJaffe,SeniorAdvisorforEnergy

andSustainability,Universityof

California,Regents

• NeilLearyDirector,Centerfor

SustainabilityEducationandHeadof

IPCCWorkingGroupIITechnical

SupportUnitforTAR,DickinsonCollege

• MicheleMadia,DirectorofEducation

andPartnerships,SecondNature

• TomMitchell,ManagingDirector,

CambridgeAssociates

• BethanyPatten,AssociateDirectorof

theSustainabilityInitiative,MITSloan

• DougRand,AssistantDirectorfor

Entrepreneurship,OfficeofScienceand

TechnologyPolicyWhiteHouse/

CouncilonEnvironmentalQuality

• CharlesSandmel,SeniorFellow,IEN

• AliciaSeiger,DeputyDirector,Stanford

Steyer-TaylorCenterforEnergyPolicy

andFinance

• MegStarr,VicePresident,Goldman

Sachs

• CarlVance,CIO,LewisandClarkCollege

AppendixI–SelectListofNewsitems,initiatives,andresourcesrelevanttohighereducationandtheparisagreement

November29,2016:LetterfromHigherEducationLeadersonClimateAction,SecondNature&ClimateLeadershipNetworkhttp://secondnature.org/higher-education-climate-action-letter/

Aletterfrom230collegesanduniversitypresidentstoPresident-electTrumpandMembersof

theUnitedStatesCongress,stating:

“We,theundersignedleadersofhighereducationinstitutionsthroughouttheUnitedStates,

recognizeouracademicandethicalresponsibilitiestocurrentandfuturegenerationstotake

aggressiveclimateaction;toreduceoursector’scarbonpollution,tosupportinterdisciplinary

climateeducation,andtocontinueresearchthatexpandsourunderstandingofrapidlychanging

earthsystems.Wearecommittedtodevelopinganddeployinginnovativeclimatesolutionsthat

provideaprosperousfutureforallAmericans.

Wejoinourcolleaguesinthebusinessandinvestmentcommunitiesinsupportingthescience-

basedtargetsoutlinedintheParisClimateAgreement.Infact,manyofourinstitutionshave

voluntarilysetevenmoreaggressivecarbonreductiongoalstoleadoursectorforwardandto

demonstratewhatispossibleforothers.

Therefore,weaskthatyousupportthefollowing:

1.ParticipationintheParisAgreement,withtheresultingnationalcarbonreductionand

cleanenergytargets,toprotectthehealthofourcurrentcommunitiesandourfuture

generations.

2.Researchinouracademicinstitutionsandinfederalagenciestoensurethatournational

climate,energy,andsecuritypoliciesarebasedonleadingscientificandtechnicalknowledge.

3.Investmentsinthelowcarboneconomyaspartofaresilientinfrastructuretoensurethe

countrycanadapttochangingclimatehazards.Theseinvestmentswillalsohelpgrow

Americanjobsandbusinesses....”

November21,2016:WhyTheU.S.ShouldStayinTheParisClimateAgreement,NeilLeary,DickinsonCollegehttp://www.huffingtonpost.com/neil-leary/why-the-us-should-stay-in_b_13114958.html

ThebignewsfromtheUnitedNationsclimatemeetingthatconcludedinMarrakechon

November18isthatmorethan190nations,withorwithouttheU.S.,areunitedintheir

determinationtopushforwardwiththeParisAgreementtocutgreenhousegasemissionsand

keepclimatewarmingtowellbelow2degreesC.


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November17,2016:365CompaniesUrgeTrumpAdministrationtoStickwithParisClimateDeal,MarketPlacehttps://www.marketplace.org/2016/11/17/sustainability/climate-change

ManyU.S.companies,includingLeviStrauss,NikeandStarbucks,havesignedaletteraskingthe

incomingTrumpadministrationtosticktotheParisAgreement.

November15,2016:Tuft’sFletcherSchoolLaunchesClimatePolicyLab,TuftsUniversityhttp://fletcher.tufts.edu/News-and-Media/2016/11/15/Climate-Policy-Lab-Announcement

“TheLabisasourceofindependentandobjectiveadviceforgovernmentscontemplatingnew

policiesconsistentwiththeParisAgreementonClimateChange.”

September12,2016:AchievingtheSustainableDevelopmentGoals:TheRoleofImpactInvesting,TheGlobalImpactInvestingNetworkhttps://thegiin.org/knowledge/publication/sdgs-impinv

“GIINhaslaunchedacampaigncallingforinvestorstomakeimpactinvestmentsthatalignto

theSDGs.MoreaboutthiscalltoactioncanbefoundinAmitBouri’sOp-EdinInstitutional

Investorhere.Aspartofthiscampaign,theGIINprofiledavarietyofimpactinvestorstobetter

understandhowtheyareapproachingtheSDGsandhowthisgrowingcommunitycan

collectivelydriveresults.”

May18,2016:CICEROClimateFinanceCenter,CICEROhttp://www.cicero.uio.no/en/posts/single/scientists-and-investors-join-forces-to-explain-climate-risk

CICEROlaunchesameetingplaceforclimatescientistsandleadingglobalinvestorstoimprove

theunderstandingofclimaterisk.Jointly,theywilldeveloptoolstoincorporateclimateriskin

long-terminvestments,tailoredtoinvestors’needsandinspiredbythelatestclimatescience.

Oneimportantaspectthathascomeupastheyworkontheirfirstprojectforinstitutional

investorsisthata2degreesscenariomaynotbethatlikely,eveniftheParisagreementis

effective.Thispointisnotmeanttodiscourageaction,butrathertoencourageinvestorsto

prepareforphysicalimpactsofclimatechangethatarelikelytobebeyond2degrees.

April21,2016:PricingCarbonWillHelpDeliveronPromisesMadeinParis,CDPhttps://www.cdp.net/en/articles/climate/pricing-carbon-will-help-deliver-on-promises-made-in-paris

Growingnumbersintheprivatesectorareawarethatcarbonpricingcandrivethetransitionto

athriving,cleaneconomy.Industryleadershaveidentifiedthattheproliferationofthese

policiesareanindicationthatbusiness,too,needstoplanaheadforanendtotheeraofcost-

lesscarbonemissions.EvenbeforeCOP21,over1,000companiestoldCDPtheywillbepricing


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theirowncarbonemissionsby2017,tomakesmarterinvestments,catalyseinnovation,andto

showinvestorsthattheyareleadingonclimate.Onecanonlyimaginetheimpactthesenew

policieswillhaveonbusinessoutlook.

April20,2016:ParisAgreementSigningCeremonyShowsCleanEnergyEra-isUponUs,TheClimateGrouphttp://www.theclimategroup.org/what-we-do/news-and-blogs/paris-agreement-signing-ceremony-

shows-clean-energy-era-is-upon-us-mark-kenber/?platform=hootsuite

Thesigningceremonywillkickoffaseriesofglobaleventsthatwillkeepuppoliticalmomentum

towardtheimplementationoftheParisAgreementin2020–andintherunuptothenext

globalCOP22climatetalks,whichwilltakeplaceinMarrakechthisDecember.

April20,2016:ParisAgreementPledgesMustBeStrengthenedinNextFewYearstoLimitWarmingto1.5°CorWellBelow2°C,ClimateInteractivehttps://www.climateinteractive.org/programs/scoreboard/early-ambition/

TheParisAgreementsetsagoaltolimitwarmingwellbelow2°Cwithanefforttolimitwarming

tonomorethan1.5°C.However,fullimplementationofthecurrentpledges,asofApril20,

2016,wouldresultinexpectedwarmingby2100of3.5°C(6.3°F).Deeper,earlieremissionscuts

areneededtolimitwarmingwellbelow2°C.TheParisAgreementprovidesamechanismforthe

nationsoftheworldtoincreasetheircommitmentsandsubmitstrongerpledgesby

2020.ClimateInteractive’sanalysishereshowswhatthiscouldmean.

April20,2016:100+CompaniesSalutetheSigningoftheParisAgreementandCallForSwiftActionOnCleanPowerPlan,Cereshttp://www.ceres.org/press/press-releases/companies-salute-paris-agreement

Morethan100companies,includingleadingglobalgiants,expressedtheirsupporttodayforthe

ParisAgreementonclimatechangeandcalledforswiftactionontheEnvironmentalProtection

Agency’sCleanPowerPlan,aproposalaimedatsignificantlycuttingcarbonpollutioninthe

UnitedStates.The110companies,includingIKEA,MarsIncorporated,PG&E,Salesforce,General

Mills,KelloggCompany,HP,andStarbucks,releasedastatementorganizedbyacoalitionof

groups,includingthenonprofitsustainabilityorganizationCeresandWorldWildlifeFund,during

ateleconferencetoday.Thestatementcomestwodaysbefore150worldleadersgatheratthe

UnitedNationsinNewYorkCitytosigntheParisAgreement.

April19,2016:WhyInvestorsNeedEarlyEntryIntoForceofParisAgreement,CDPhttps://www.cdp.net/en/articles/investor/why-investors-need-early-entry-into-force-of-paris-

agreement


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AstheUNFCCCnotes,“earlyentryintoforceoftheParisAgreementwouldhaveacatalytic

effect,spurringstronganddecisiveactionbyPartiesandstakeholders.”Privateinvestorsarekey

amongthesestakeholders.Theyhavetheabilitytodrivenotjustbillions,buttrillionsofdollars

intoshapingthelow-carboneconomy.Thewindowofopportunitytodothisanddoit

effectivelyisrapidlyclosing,whichiswhyearlyentryintoforceisnecessary.

February18,2016:PensionsSeenBackingMoreRenewableInfrastructure,BloombergBriefhttp://newsletters.briefs.blpprofessional.com/document/QzYNWmYx2OTHXtdL6QWJFg--_9ez1

m1jqv0rz74c8ma/front

TheParisagreementcouldalsopushinvestmentstowardrenewables.“Theagreementisgoing

toserveasalong-termpositivesignalforrenewabletechnologies,”saidDougMorrow,

associateresearchdirectoratSustainalytics.February8,2016:OnDivestment,AdopttheTorontoPrinciple,HarvardCrimsonhttp://www.thecrimson.com/article/2016/2/8/franta-divestment-toronto-principle/

LastDecember,acommitteeattheUniversityofTorontoreleasedareport5ontheissueof

divestment,drawingaclearlinebyaligningitselfwiththeneedsoftheParisagreement.It

recommendedthattheuniversitynotfinancecompanieswhose“actionsblatantlydisregardthe

internationalefforttolimittheriseinaverageglobaltemperaturestonotmorethanoneanda

halfdegreesCelsiusabovepre-industrialaveragesby2050…Thesearefossilfuelscompanies

whoseactionsareirreconcilablewithachievinginternationallyagreedgoals.”Thisprinciple,

basicasitis,alignsrhetoricandaction.Itsuggeststhatitisallinstitutions’responsibilitytogive

lifetotheParisagreement.HarvardcouldadoptthisTorontoprinciple,too,andtheworld

wouldbebetterforit.Inpractice,adoptingtheTorontoPrinciplewouldlikelymeanmoving

investmentsawayfromcoalcompaniesandcoal-firedpowerplants,companiesseekingnon-

conventionaloraggressivefossilfueldevelopment(suchasoilfromtheArcticortarsands),and

possiblyalsocompaniesthatdistortpublicpoliciesordeceivethepubliconclimate.Atpresent,

theseactivitiesareincompatiblewiththeagreementinParis.

December11,2015:WhiteHouse’sAmericanCampusesActonClimateInitiative,TheWhiteHousehttps://www.whitehouse.gov/the-press-office/2015/12/11/american-campuses-act-climate

318schoolspledgedthefollowing:“Todayourschoolpledgestoacceleratethetransitionto

low-carbonenergywhileenhancingsustainableandresilientpracticesacrossourcampus.”

5 http://www.president.utoronto.ca/secure-content/uploads/2015/12/Report-of-the-Advisory-Comm ittee-on-Divestment-from-Fossil-Fuels-December-2015.pdf


14

December10,2015:KeytoSuccessofClimatePactWillBeSignalstoGlobalMarkets,CoralDavenport,TheNewYorkTimeshttp://www.nytimes.com/2015/12/11/world/europe/key-to-success-of-climate-pact-will-be-its-signals-

to-global-markets.html

InthemidstofthehistoricclimatenegotiationsinParis,theNewYorkTimesreported:“experts

saidtheultimatemeasureofsuccessoftheagreementwillbewhetheritsendsaclearsignalto

globalfinancialinvestorsthattheyshouldmovemoneyawayfromfossilfuelsandtowardclean-

energysourcessuchaswindandsolarpower.Withoutthatsignal,thereislittlechancethat

emissionswillbereducedenoughtostaveoffthemostcatastrophicimpactsofglobal

warming.”

November19,2015:200+schoolssignCampusActonClimateStatement,ObamaWhiteHousehttps://obamawhitehouse.archives.gov/the-press-office/2015/11/19/fact-sheet-ahead-conference-

climate-change-more-200-colleges-and

OnNovember19,2015,218campusesrepresentingover3.3millionstudentsacrossthecountry

arecommittingtotakeactiononclimatebysigningAmericanCampusesonClimatePledge:“As

institutionsofhighereducation,weapplaudtheprogressalreadymadetopromoteclean

energyandclimateactionasweseekacomprehensive,ambitiousagreementattheupcoming

UnitedNationsClimateNegotiationsinParis.Werecognizetheurgentneedtoactnowtoavoid

irreversiblecoststoourglobalcommunity’seconomicprosperityandpublichealthandare

optimisticthatworldleaderswillreachanagreementtosecureatransitiontoalowcarbon

future.Todayourschoolpledgestoacceleratethetransitiontolow-carbonenergywhile

enhancingsustainableandresilientpracticesacrossourcampus.”

October28,2015:StanfordIssuesStatementonClimateChangeAheadofParisConference,StanfordUniversityhttps://news.stanford.edu/2015/10/28/climate-change-statement-102815/

OnbehalfoftheStanfordBoardofTrustees,BoardChairStevenA.DenningandStanford

PresidentJohnHennessyhaveissuedastatementtothesummitconveners,urgingglobal

leaderstolooktouniversitiesforclimatesolutions.ThestatementhighlightsthestepsStanford

hastakentoprovideleadershiponclimatechange,bothinitsacademicenterpriseandinits

operations,andwelcomesdialogueandidea-sharingwithotheruniversities.

September7,2015:FiduciaryDutyinthe21stCenturyReport,PRI,UNEPFI,UNEPInquiry,andtheUNGlobalCompacthttps://www.unpri.org/page/new-report-aims-to-end-debate-about-esg-and-fiduciary-duty


15

Thestartingpointforthisreportwasthequestionofwhetherthereisaneedtoreframeor

redefinefiduciarydutyinawaythatisrelevantfor21stcenturyinvestors.Inthisexcerptfrom

thereport,intervieweeshighlightedtherolepolicyplaysininvestoraction:

“However,theyalsoacknowledgedthatpublicpolicywouldbeakeydeterminantoftherateat

whichinvestorstookaction(e.g.toreduceportfolio-relatedemissionsortoinvestinclean

technologies).Theythereforesuggestedthatinvestorsneedtocontinuetoengagewith

governmentstoencouragetheadoptionofpolicymeasurestocorrectmarketfailuresandto

requirecompaniesandinvestorstointernalizeexternalitiesasanintegralpartoftheirfiduciary

duties(p.18).”

June,2015:InvestingintheTimeofClimateChange,Mercerhttps://www.mercer.com/our-thinking/investing-in-a-time-of-climate-change.html

Thefourkeyfindingsofthisreportsuggestthatanticipatingandpreparingfortheimpactof

climatechangeoninvestmentreturnsshouldbeanintegralpartoftheinvestmentprocess.The

keyfindingsinclude(1)Climatechangewillhaveanimpactregardlessofthescenario;(2)

Potentialsectorimpactsaremostmeaningful-particularlyoverthenext10yearsto2025;(3)

Assetclassimpactscanalsobematerial-andvarybyclimatescenario;and(4)A2oC

(Transformation)scenarioneednotharmtotaldiversifiedportfolioreturnsoutto2050.

Documents

Higher Education, Endowments and the Paris Agreement