McMaster’s investments are allocated to a diversified portfolio of Investment Manager mandates/products. Each mandate/product will hold investments across multiple sectors. Investment Manager mandates/products are selected and monitored against policy objectives associated with both performance and decarbonization targets. Investment performance risk is managed by allocating to investment manager mandates/products that diversify holdings across different asset classes (e.g. fixed income, public equities, real estate, and infrastructure), geographies, and investment styles.
McMaster University supports Investment Manager divestment decisions where companies fail to set meaningful plans and targets aligned with the Paris Agreement. The United Nations endorsed the Paris Agreement, which calls on companies to set measurable globally accepted carbon targets to achieve a 50% reduction in carbon emissions by 2030. McMaster’s carbon reduction objective for the portfolio is more accelerated than the Paris Agreement, with a 75% reduction goal across all invested assets by 2030 and the rest as soon as possible thereafter. McMaster’s weighted average carbon intensity is 25% lower than the All Country World Index – Ex Fossil Fuels benchmark.
The selection of investment managers incorporates traditional performance and governance considerations with additional environment, social, and governance (“ESG”) considerations associated with the United Nations 17 sustainable development goals. All of McMaster’s Investment Managers are signatories to the UN Principles for Responsible Investment (“PRI”). All Investment Managers use an ESG-Integrated approach, aligned with the CFA Institute’s current guidance, as part of the manager’s overall company selection process.
