SA R10 (2017-2018): Integrating Sustainable Investments into Endowment Reports

Acknowledged by the President

• Resolution:
  SA R10 (2017-2018): Integrating Sustainable Investments into Endowment Reports
• Day:
  November 15, 2017
• Action:
  Acknowledged by the President
• Summary / Notes:

  Dear Jung,

  Thank you for submitting SA Resolution #10: “Integrating Sustainable Investments into Endowment Reports” for my consideration. I appreciate the Student Assembly’s interest in Cornell’s leadership on sustainability issues. 

  I am glad to note that the resolution recognizes the progress towards our carbon neutrality goal for the Ithaca campus and acknowledges the collective action that Cornell’s students, faculty, and staff have made to honor our 2015 commitment to the American Campuses Act on Climate Pledge.

  I agree that it is important to report regularly on our progress in meeting these sustainability goals. The President’s Sustainable Campus Committee (PSCC) is doing an admirable job in this regard, and I would point the SA to the recently released FY 2017 Sustainability Report , which documents the university’s carbon neutrality and other sustainability targets. One objective measure of progress in sustainability performance detailed in the report is the Sustainability Tracking, Assessment and Rating System (STARS). As noted in the resolution, Cornell received a “gold rating and exceptional score of 68.49” by STARS. This was the highest ranking of any Ivy League institution.

  In STARS reporting, the area where Cornell fell most short in relation to our peers was with respect to our investments and disclosure thereof. In an effort to improve Cornell’s standing in this regard, Resolution 10 asks that the Board of Trustees include renewable investments figures in its quarterly endowment reports. However, in the STARS scoring system investment disclosure accounts for only one point in an institution’s overall score. Hence, these additional reporting duties, while adding to the Trustees’ reporting tasks, would not materially improve our STARS score. I would prefer to focus our efforts on meaningful progress towards our sustainability goals rather than on tasks aimed solely at elevating an already stellar rating.

  Moreover, all Cornell investment decisions are guided by the Board of Trustees’ 1971 Investment Policy Statement, which states that the “fundamental objective of Cornell University’s investment policy is to strengthen Cornell’s financial ability to fulfill its basic function as an educational institution.” That policy vests “responsibility for accepting, preserving and managing the funds” with the Board of Trustees who, in January 2016, noted that “the University’s endowment must not be regarded primarily as an instrument of political or social power.” In an effort to ensure neutrality of the endowment’s investments with respect to political or social issues, Cornell only discloses the overall performance of the endowment consistent with its charge to strengthen our ability to fulfill our basic education functions. I will note, however, that in January 2016 the Board of Trustees directed the university’s chief investment officer to actively seek investments in alternative energy.

  The resolution requests that I forward the resolution to the President’s Sustainable Campus Committee (PSCC), the Senior Leaders Climate Action Group (SLCAG), and the Cornell University Board of Trustees. I am happy to forward the resolution and this response to the PSCC and the Board of Trustees. While the SLCAG has played an important role in our efforts to chart a path towards meeting our Ithaca campus carbon neutrality goals, the requests contained in this resolution are outside the scope of the SCLAG’s charge.   

  Thank you again for your continued advocacy as we work to ensure that Cornell remains a leader in creating a sustainable future for our campuses, the nation, and the global community.

  Sincerely,

   

  Martha E. Pollack

  President, Cornell University

  300 Day Hall

  Ithaca, NY 14853

  Tel: 607-255-5201

  www.cornell.edu

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