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Investment Pool

McMaster’s investments are distributed into Investment Manager products. Each product will hold investments in financial instruments across multiple sectors. Investment Manager products are selected and monitored against policy objectives associated with both performance and decarbonization targets. Performance risk is managed using investment manager products to diversify holdings across different asset classes (e.g. fixed income, public equities, real estate, and infrastructure), geographies, investment styles.

McMaster University supports Investment Manager divestment decisions where companies fail to set meaningful plans and targets aligned to 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.

McMaster University is a UN PRI signatory and has adopted the Task force Recommendations for Climate-related Financial Disclosures (“TCFD”), which recommends tracking weighted average carbon intensity across portfolio assets and targeting reduction over time. In addition, McMaster is tracking the portfolio’s investments in clean technology solutions and its decreasing exposure to fossil fuel reserves targeting divestment.  McMaster’s TCFD transparency disclosures related to governance, strategy, risk, metrics and targets are included in the Annual Financial Report.