Urge the UC to Invest Responsibly

February 1st, 2010

 

Mark G. Yudof

President of the University

1111 Franklin St., 12th Floor

Oakland, CA 94607-5200

 

Dear Mr. Yudof,

We, the UC Responsible Investing Coalition, are writing to urge theUniversity of California to uphold it%u2019s obligation to preserve the integrity of our institution%u2019s values by being firmly committed to promoting positive environmental and social impacts through the UC Regents Foundation accounts.  The Treasurer%u2019s Office manages over 55 billion dollars, a number that is larger than 136 countries' annual GDP.[1]  We strongly encourage that the UC system manage this substantial amount more responsibly than as it is currently. As such, we endorse that the University of California Regents vote in support of creating more active and visible mechanics to both encourage and ensure that proactive and responsible measures are taken in the management of our institution%u2019s endowment and retirement pools.

We are undoubtedly a university system that goes beyond providing higher education; we are a university system that actively advances knowledge, ideas, and technologies for the application of the betterment of society.  We are, in essence, modelers of a healthier society and world %u2013 we led by example through our commitments to community development, sustainability, and social welfare.  We should therefore extend this commitment and vision to businesses, communities, and industries of which we are shareholders.

To completely be a reknowned institution for the betterment of society, we must become an exemplar of responsible investment. We believe the financial practices of our University should be consistent with the values of the institution, as reflected in our mission.  We urge the University of California (UC) Board of Regents and Office of the Treasurer to align its investment policies with the principles it upholds in the areas of research, teaching, and public service. 

Not only is this step vital in ensuring our university%u2019s commitment towards creating a better society, but it is an effective mechanism to promote for the long-term interest of our asset's consist returns %u2013 a proactive technique which is much needed in the current UC system%u2019s predicament of uncertain budget.[2]  Billions of dollars, today, are managed with this type of fiduciary responsibility as guided by the UN Principles on Responsible Investing, and historical data shows complements, not compromises, to return on equity.[3]  Many universities, such as Dartmouth, Columbia, and Swarthmore, publicly engage in these responsible investing techniques. We must lead with this institutions rather than let our investments be socially and environmentally questionable as well as to leave our complete fiduciary responsibility unaddressed. We forfeit our reputation as an institution for advancement and public service if we allow this to continue. 

With public data of the UC Regent's Proxy Voting Records, our current system of active fund management consistently opts out for the opportunity to safeguard our investments %u2013 compromising the UC Regent%u2019s complete fiduciary responsibly.  It is imperative that we take more active, and transparent, measures TODAY.  We strongly urge the UC system to adopt techniques much like other proactive universities and take steps to becoming the flagship educational signatory to the UN Principles on Responsible Investing.

Sincerely,

UC Responsible Investing Coalition

  

Cc: All members of the University of California Board of Regents.

[1] https://www.cia.gov/library/publications/the-world-factbook/rankorder/2001rank.html

[2] http://www.ft.com/cms/s/0/2a4e7436-917b-11dd-b5cd-0000779fd18c,dwp_uuid=4458dce6-9161-11dd-b5cd-0000779fd18c.html?nclick_check=1

[3] http://www.unpri.org/