REP co-founder Aaron Podolny had a great op-ed in yesterday's YDN laying out the basics of why responsible investing is an achievable goal for universities like Yale: it's common, it's profitable, and it makes a difference:

"In 1972, Yale demonstrated a commitment to responsible investing when it formed the Advisory Committee on Investor Responsibility — a group of students, alumni, faculty and staff responsible for overseeing the ethics of the Yale endowment. Unfortunately, while the practices of other responsible investors have evolved over the past four decades, Yale’s approach has not.

The ACIR cannot practice modern responsible investment because its tools are decades old. Most importantly, the committee can only review 1 percent of the Yale endowment — far too little to analyze its environmental and social impact and find opportunities for active ownership. Unsurprisingly, since the committee’s inception its major actions have all followed the antiquated model of divesting from “bad” companies rather than engaging with them to make real change. We can do better."

Read the rest here!

As I write this, we're waiting with bated breath to hear back from the ACIR tomorrow. Will they acknowledge that Yale's oversight structures are decades out of date? We'll see tomorrow.

Very good article...good job


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