Endowment ESG Policy

Peddie is committed to the intellectual, social and moral growth of our students, and inspires them to continually strive for the highest quality of citizenship. The Peddie Board of Trustees endeavors to reflect these values in all areas under its purview, including in its investment policy regarding the endowment.

The global investment community has increasingly recognized its responsibility in promoting environmental sustainability initiatives, socially beneficial activities, and ;good corporate governance in its approach to allocating capital. Environmental, Social and Governance (ESG) principles are one important framework for assessing how a company or business performs in areas that have broad effects on society. ESG considerations include: Environmental impacts, such as carbon emissions, energy efficiency, climate change, resource scarcity and water use; Social goals, such as diversity, equity and inclusion initiatives, employee health and safety standards, and promoting workers’ rights; and Governance considerations, including board oversight, business ethics, political influence and contributions, and executive compensation.


 

Implementation

The IC will therefore incorporate an ESG policy in its investment process in the following ways:

  • First, the IC and its investment consultants will engage with investment  managers to evaluate their ESG-related policies as a part of our due diligence  process over any prospective investment. The IC recognizes that most  reputable investment managers have already adopted ESG standards into their  processes, though some may not have a stated ESG policy. We will therefore  seek to understand key metrics the manager uses to monitor ESG-related  matters and ensure compliance with its policy or standards.  
  • Second, the IC will document ESG-related matters covered in due diligence as  part of its decision-making process, and will take such findings into  consideration before approving a new investment or investment manager. 
  • Third, the IC and its investment consultants will monitor ESG practices as part of their  ongoing evaluation of any investment manager present in the Endowment, and will  consider reducing or eliminating an investment if material breaches of ESG standards are  uncovered. On very rare occasions, circumstances may arise when a manager’s actions  or activities within the manager’s underlying portfolio investments are so abhorrent as  to warrant the Endowment’s divestiture from those investments or investment  managers. Such activities include involvement in genocide, human trafficking, slavery,  corruption, embezzlement and violations of child labor laws. The IC will promptly review  these instances, consider divesting from such positions, and discuss appropriate actions  with the Board.  
  • Fourth, as part of its standard reporting, the IC will periodically provide the Board a  summary of our ESG evaluation and monitoring processes, and will report any material  deviations or negative findings and actions taken by the IC as a result of such findings.  
  • Given that ESG considerations are a relatively new and evolving initiative in the  investment world, the IC will review this policy on a periodic basis, and will propose any  modifications to the Board for consideration.


 

 

Ad Hoc Committee

Rob Ruberton, Chair

Suzanne Daly

Allison Davi

Sangu Delle

Sunanda Nair-Bidkar

Mike Smith