Sustainable Investing Report: Our Approach to a Better Future

We're committed to creating a better future for generations to come, and that's why we're excited to share our approach to sustainable investing.

Our approach is centered around four key pillars: Environmental Stewardship, Social Responsibility, Governance, and Impact Investing.

We believe that the natural world is a vital component of our business, which is why we're taking steps to reduce our carbon footprint. This includes reducing energy consumption, using renewable energy sources, and implementing sustainable supply chain practices.

Our goal is to make a positive impact on the environment, and we're tracking our progress through regular carbon footprint assessments.

We understand that sustainability risks and opportunities are material and directly impact business profitability over the long run. This is why companies that proactively manage for pressing environmental, social, and governance (ESG) issues are best positioned to survive and thrive in a resource-constrained world.

WRI has committed to invest its endowment in a prudent manner that incorporates how companies manage ESG risks and opportunities, while achieving a market return.

To minimize exposure to various climate and sustainability risks, we include passive strategies that under-weight (or exclude) investments in companies with poor sustainability records. This allows us to achieve a broadly diversified portfolio while managing for potential downside risks.

Our OCIO partner uses a three-part framework to proactively integrate sustainability across our endowment portfolio. This framework includes reducing exposure to ESG risks through passive strategies, driving value creation through active managers with strong ESG competency, and allocating capital to solutions and capturing growth opportunities through private market investments.

We prioritize active investments constructed through holistic and data-driven ESG integration processes, which requires identifying and selecting active managers that demonstrate best practices on ESG competencies.

Here's an overview of our three-part framework:

We have designated 15 percent of WRI's portfolio to a private market "impact" carve-out, which will proactively invest in companies that target environmental and social solutions and achieve measurable positive impacts.

By integrating ESG considerations across the entire portfolio, we aim to maintain competitive returns while preserving and growing our financial resources.

Responsible investing is about managing risk, creating investment opportunity, and enhancing long-term performance potential, all while driving positive change. This approach considers financially material Environmental, Social, and Governance (ESG) factors within the investment decision-making process.

The goal of responsible investing is to achieve competitive returns while integrating ESG considerations across the entire portfolio. This is done by reducing exposure to ESG risks through passive strategies, driving value creation through active managers with strong ESG competencies, and allocating capital to solutions that capture growth opportunities through private market investments.

Some key factors to consider in responsible investing include climate impact, energy consumption, waste management, and natural resource use, as well as diversity and inclusion, employee engagement, and human rights practices. By evaluating companies based on these factors, investors can identify opportunities to drive positive change while managing risk.

Here are some ways to get started with responsible investing:

By taking a responsible investing approach, you can help create a brighter future for yourself and the planet.

We believe that sustainability risks and opportunities are material and directly impact business profitability over the long run.

As a long-term investor, we understand that climate change is the most urgent global challenge of our time.

Companies that proactively manage for pressing environmental, social, and governance (ESG) issues are best positioned to survive and thrive in a resource-constrained world.

WRI has committed to invest our endowment in a prudent manner that incorporates how companies manage ESG risks and opportunities, while achieving a market return.

We have been a signatory to the Principles of Responsible Investment since 2016.

Our commitment to sustainable investment is not just about doing good, but also about preserving and growing our financial resources.

By integrating ESG considerations across the entire portfolio, we aim to maintain competitive returns and demonstrate that a sustainable investing approach can help asset owners achieve their goals.

Here are the key principles guiding our investment decisions:

Responsible investing is a way of managing your investments that takes into account the social and environmental impact of the companies you're investing in. It's a growing trend as more people want to align their investments with their values.

Sustainable investing has been a key part of WRI's approach since 2016, with a commitment to integrate ESG considerations across the entire portfolio. This involves evaluating companies based on factors such as climate impact, energy consumption, and diversity and inclusion.

Responsible investing can also help you avoid potential risks associated with companies that are not managing their ESG issues effectively. For example, companies with poor sustainability records can be excluded from your portfolio through passive strategies.

A key aspect of responsible investing is considering the long-term impact of your investments. This includes aligning your portfolio with the goals of the Paris Agreement, such as transitioning to a net-zero GHG emissions economy by 2050.

To get started with responsible investing, you can research funds that focus on ESG criteria, such as those offered by Fidelity. These funds seek out companies with strong environmental, social, and governance profiles.

Here are some key ESG factors to consider when evaluating companies:

It's worth noting that responsible investing can involve some trade-offs, such as potentially lower returns or reduced diversification. However, many investors believe that the long-term benefits of responsible investing outweigh these costs.