2023 SRI Commitments

In December 2023, following the success of McGill’s previous socially responsible investing (SRI) initiatives and their completion two full years ahead of schedule, the Board of Governors adopted an even more ambitious package of SRI commitments:

1. Decarbonize and divest

   • Sustain a scope 1 and 2¹ carbon footprint 33% below the benchmark² for the MIP’s listed equities and corporate bonds, through 2029.
   • Divest from all direct holdings in the Carbon Underground 200™ (“CU200”), the largest publicly-listed coal, oil, and gas reserves owners, by 2025.

2. Invest in sustainable investment strategies

   • By 2029, allocate 10% of the MIP to sustainable investments aligned with the United Nations Sustainable Development Goals³.

3. Exercise active stewardship through engagement

   • Enhance engagement initiatives by broadening the scope of topics to encompass social and governance considerations, while continuing to address climate change.
   • Promote the adoption of ESG-conscious proxy voting policies whenever feasible.

4. Enhance ESG integration

   • Review the MIP’s Statement of Investment Policy to reflect new ESG goals.
   • Integrate proprietary ESG scoring system within the manager monitoring process.
   • Integrate third-party ESG risk metrics within the manager monitoring process.

5. Promote McGill’s negative screening fund

   • Continue to offer the Green Century Fund - a Fossil Fuel Free fund available to McGill donors.

6. Demonstrate accountability through reporting

   • Publish an annual report on SRI strategies disclosures aligned with the Task Force on Climate-Related Financial Disclosures (TCFD) framework⁴.
   • Report on portfolio carbon emissions, exposure to sustainable investments and other initiatives relevant to SRI activities.

7. Demonstrate SRI leadership

   • Evaluate and promote SRI goals, policies and best practices through collaboration with peer universities.
   • Improve McGill’s United Nations Principles of Responsible Investment (UNPRI) score.

8. Review SRI practices regularly

   • Ensure that McGill’s SRI practices are reviewed every five years to ensure their continued effectiveness.
   • A review of SRI practices has been added to the Board of Governors' calendar of business in Spring 2029.

¹ Scope 1 emissions are direct greenhouse gas (GHG) emissions that occur from sources that are controlled or owned by an organization (e.g., emissions associated with fuel combustion in boilers, furnaces, vehicles). Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling. Although scope 2 emissions physically occur at the facility where they are generated, they are accounted for in an organization’s GHG inventory because they are a result of the organization’s energy use. (https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf)

² This offers a way to compare McGill’s holdings with the broader market. Given that the benchmark is expected to decarbonize over time, remaining at least 33% below benchmark stands to result in a decreasing carbon footprint.

³ The UN SDGs are a widely known framework developed by the United Nations that considers key environmental and social challenges. By monitoring our alignment with the UN SDGs to achieve our impact investing target we can calculate the percentage of the MIP’s portfolio contributing to addressing these issues: (https://www.unpri.org/sustainability-issues/sustainability-outcomes/sustainable-development-goals )

⁴ International Sustainability Standards Board (ISSB) S1 and S2 fully incorporate the TCFD recommendations. These global standards will accelerate regulatory efforts on sustainability, provide a common framework for reporting, and improve the usability and transparency of sustainability disclosures