Responsible Investment

The Incorporating Responsible Investment Principles at the University of Manitoba report (PDF) details actions that give priority to social and environmental issues in decisions related to the University’s investments, such as the University Investment Trust (endowment fund).

Both the report and the new policy fulfill recommendations forwarded by the Responsible Investment Committee established in fall 2020. The recommendations were approved by the Trust Investment Committee in fall 2022 and by Board of Governors (BOG) in January 2023.

The UN PRI is an investor initiative in partnership with the United Nations Environment Programme Finance Initiative and the UN Global Compact. It was established in 2005 by then United Nations Secretary-General Kofi Annan, who invited 20 of the world’s largest institutional investors and 70 experts from the investment industry, intergovernmental organizations, and civil society to work together to develop its six guiding principles. These are intended to achieve an economically efficient, sustainable global financial system by enabling good governance and by reducing the barriers to a sustainable financial system.

The six Principles for Responsible Investment are:

1. Incorporating ESG issues into investment analysis and decision-making processes.
2. Active ownership and incorporating ESG into ownership policies and practices.
3. Seeking appropriate disclosure on ESG issues from investee companies.
4. Promoting acceptance and implementation of the Principles within the investment industry.
5. Working with other signatories to enhance the effectiveness of implementing the Principles.
6. Reporting on activities and progress toward implementing the Principles.

Signatories to the UN PRI commit to applying the Principles, in acknowledgement that ESG issues affect the performance of investment portfolios and that applying the Principles will better align investors with societal objectives.

The UN PRI provides signatories with services and tools to support the implementation of the Principles and advance its mission. These services include thematic support by asset class, a reporting framework, regulatory insights, local events, online training courses and opportunities for collaboration through the Collaboration Platform and the Academic Network. The UN PRI has over 4000 signatories globally, including many universities and pension funds.

The university believes that by divesting of fossil fuel companies, it sends a message to those companies that energy needs transition; that alternative energy needs to be prioritized. Many educational institutions are demonstrating leadership in the face of the climate crisis by divesting investment funds from the fossil fuel industry and reallocating those funds to sustainable and just alternatives.

Under section 2.5 of the Responsible Investment Policy (PDF), the University committed to make meaningful and prudent allocations to endowment fund investments that will advance positive social and environmental changes while still seeking financial returns. The first of these investments was made in December 2021 when the endowment fund committed $35 million USD to the Brookfield Global Transition Fund. This fund will invest large-scale capital in renewable energy, and invest in the transformation of carbon-intensive businesses to achieve the goals under the Paris agreement.