Sustainability Annual Report 2023
Reducing and Addressing Climate Risk
Over the past year, UC Investments continued to focus on managing the material risks that climate change poses to its investments.
To do so, the University uses two main strategies.
The first climate risk management strategy is to not invest in companies that own any amount of fossil fuel reserves — some 300 companies around the world. All the products that UC Investments manages — the endowment, pension, retirement savings program and working capital — are essentially fossil-free.
UC Investments’ other primary climate risk management strategy is to advocate for improved climate change governance at the companies in which it invests. As an active owner, UC Investments engages with the leaders of hundreds of such companies annually on their climate change risks and strategies. To increase the University’s effectiveness and expand its reach, UC Investments engages in concert with other institutional investors through groups such as Climate Action 100+ and the FAIRR Initiative. Over the past year, UC advocated with dozens of companies in which it invests to develop and report business-relevant metrics on climate change and to take actions to decarbonize their businesses.
Measuring the Carbon Footprint of UC’s Investment Portfolio
UC Investments tracks and makes public the carbon footprint of its public equities, corporate debt, private equity and private credit, which amount to roughly 73% (by dollar value) of the pension, retirement savings plan, endowment and working capital products, as of June 30, 2023.
UC Investments is a signatory to the Task Force on Climate-related Financial Disclosures (TCFD), because it knows that consistent rigorous disclosure of climate risks and opportunities is important to inform investment decisions. More information can be found in UC’s third annual TCFD report.
Investing in Transformational Solutions
Innovative companies need access to capital in the early stages of their development. UC is proud to be an anchor funder of early-stage climate tech companies, putting approximately $218 million of UC’s capital to work through Congruent Ventures and the MIT Engine Fund.
From electric vehicle fleet charging software to solar finance tools to superconducting electric transmission lines, portfolio companies in these venture capital funds are enabling and accelerating the transition to a clean, resilient energy system.
Renewable Energy Investments Around the World
Over 3.15 gigawatts of wind, solar and battery storage have been installed in the U.S., Canada, Ireland, India and Japan due to UC’s cumulative investment.