Carleton University’s Graduate Students’ Association issued a press release today stating that the university is ‘locking them out’ of today’s meeting of the Board of Governors. This is false.
In fact, the Board of Governors has been advised that ‘hundreds’ of students planned to attend and ‘disrupt’ the meeting as part of the campaign to force the university to divest its pension fund from companies doing business with Israel.
To allow interested parties to attend the public portion of the meeting, the Board has asked those parties to identify representatives and seats will be reserved for them.
The Board of Governors’ membership includes students, staff, and faculty. In addition, the Carleton community is welcome to communicate with members of the university’s Board of Governors at any time.
For more information:
Lin Moody
Media Relations
Carleton University
613-520-2600, ext. 8705
Background Information on Carleton University’s Pension Fund and Socially Responsible Investing Policy
By now, many of you are aware of a movement on campus that would have the university pension fund divest itself of certain companies doing business in and with the state of Israel.
In addition, the issue of the pension fund’s position on socially responsible investing has again been raised, including last Friday at the Senate meeting.
Given this, I would like to take the opportunity to reiterate that the Pension Fund Committee has taken steps to address the question of socially responsible investing, and to explain the governance and legal reasons underpinning the committee’s decision not to divest.
Specifically, the Pension Fund Committee, which manages the retirement plan, has a fiduciary duty to act in the long-term interests of the plan’s beneficiaries. This requires that the fund must continue to be invested to achieve the best possible risk-adjusted rate of return on the fund’s assets. Imposing constraints on portfolio investments could undermine the committee’s ability to fulfill its fiduciary responsibilities.
In 2009-’10, the Pension Fund Committee undertook a review of responsible investing that included an analysis of policies at other institutions, a review of the United Nations Principles for Responsible Investing (UNPRI) and discussions with experts in the field of responsible investing. In September 2010, an amendment was made to the Statement of Investment Policies and Procedures for the Trust Fund under the Carleton University Retirement Plan. The amendment states that environmental, social and governance factors should be considered in investment decision-making. The policy is binding on the plan.
The full text of the amendment can be found online at: http://www2.carleton.ca/finance-admin/ccms/wp-content/ccms-files/SIPPP_RI_Policy_Nov2010.pdf.
The policy incorporates best practices and it reflects the approach of the CPP Investment Board and Ontario Teachers’ Pension Fund.
Some of you may have received letters or seen the posters put up by the group behind the divestment campaign. Please be advised I have offered to meet with this group to discuss their views and allow for an opportunity to understand the Pension Committee’s fiduciary obligations. I have not yet had a response from this group. In any case, the Board itself will not be considering the divestment issue any further.
Sincerely,
Duncan Watt
Vice-President (Finance and Administration)
Tuesday, March 29, 2011 in News Releases
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