Socially Responsible Investment in Universities and Colleges

Socially Responsible Investment in Universities and Colleges

A Campus Sustainability Programme Conference

Tuesday 27 March 2007

University of EdinburghManagementSchool

This event is designed for a high level audience who are key to making decisions about the management of university and college funds in Scotland. Socially responsible investment (SRI) is of growing importance to the sector and attendance at this event will enable institutions to consider how to take account of SRI in making investment decisions

The Context

Many universities and colleges want to behave more sustainably. The investment and use of funds – as endowments, as pensions, and for general purposes – is increasingly critical for institutions.

Pension fund trustees now have a legal obligation to set out in their statement of investment principles “the extent (if at all) to which social, environmental and ethical issues are taken into account in the selection, realisation and retention of investments”.

There is also growing pressure to ensure that investment decisions have a good fit with charitable objectives. Staff and students are also keen for institutions to use funds in ways that, whilst generating good returns,benefit or do not harm society and the environment.

What is SRI?

SRI is driven by the investor’s interests but typically will seek out investment in:

• Businesses demonstrating high standards of corporate responsibility in relation to corporate standards, workplace practices, environmental affairs and their interaction with society.
• Profitable 'industries of the future' that are positive for society and the environment such as renewable energy, biotechnology, water management, waste management and health care.

Conversely, socially responsible investment may avoid industries such as gaming, tobacco, armaments or uranium mining, and companies with little regard for the environment, governance and labour, and human rights.

More generally, many of the world’s largest pension funds and fund managers have signed up to the UN principles of ResponsibleInvestment which commits signatories to placing environmental, social and governance standards at the core of their investment strategies.

Wider Benefits of adopting SRI

ApplyingSRIprinciples can help to create an environmentally sustainable and socially responsible economy, and can also improve the management of funds by:

• Revealing new investment opportunities driven by the sustainability imperative.
• Empowering investors, enabling them to make choices about how and where their funds are invested.
• Uncovering business risks that may not be identified through traditional financial analysis.

How will you benefit from attending this event?

This event is a unique opportunity that will enable you to;

• Become aware of the changing political and financial climate supportingSRI and of the extent to which it is now widespread.
• Learn from fund managers and others about the different criteria used to define SR approaches to investment and how fund managers set about investing to meet their clients needs.
• Learn from other Universities and from the UK’s second largest pension fund about how they have developed and implemented SRIpolicies.
• Consider what first steps you need to take to introduce SRI into your institution.
• Learn from Oxford Investment Partners about how SRI relates to other innovations in fund management.

Who should attend?

University and college directors of finance, chairs or other members of university and college investment committees, trustees of endowment funds, relevant members of university and college senior management (e.g. vice principals, secretaries etc).

THE PROGRAMME

09:45 / Coffee and registration
10:15 / Introduction to the day by the chair for the day – Professor David Hatherly
10:25 / The nature of responsible investment
Approaching fund management with SRI in mind - an overview
James Clunie, Head of MSc in Finance and Investment, University of Edinburgh Management School
Links between SRI and good governance
Alex van der Velden, Executive Director, Fair Pensions
Discussion
11:15 / Refreshment break
11:30 / Fund managers' perspectives
Aberdeen Asset Management Andrew Preston,Head of SRI
Baillie Gifford Marianne Harper Gow, Corporate Governance and SRI Analyst
Oxford Investment Partners Paul Berriman, Partner William Bourne, Consultant
Panel discussion with fund managers
12:30 / Lunch
13:30 / Case studies - putting SRI into practice
University of Edinburgh Melvyn Cornish, University Secretary and Head of Student and Academic Services Group
University of St Andrews Derek Watson, Quaestor and Factor
USS Pension fund David Russell, Head of Responsible Investment
Panel discussion
14:50 / Where now with SRI in ScottishUniversities and Colleges?
15:25 / Tea and Close

THE CONTRIBUTORS

DAVID HATHERLY

Is Professor of Accounting and Head of the Accounting and Finance Group in the University of Edinburgh Management School. He is also an author of auditing andaccounting texts and numerous journal papers; member of various Institute of Chartered Accountants of Scotland (ICAS) committees; former Director of Accounting and Auditing Research at ICAS; member of the UK Auditing Practices Board (APB) and Chairman of the APB's Auditing Research Group.

JAMES CLUNIE

Joined the University of Edinburgh in 2003 and is Programme Director for the MSc in Finance and Investment, and a Senior Lecturer in Finance. He lectures to postgraduate students on Financial Markets and Portfolio Management and Investment Analysis. His research interests include securities lending, short-selling and predatory trading. He has undertaken consultancy work for Aberdeen Asset Managers and Scottish Widows Investment Partnership, is a trustee of the Church of Scotland Pension Fund and is also a Director of CBF Funds Trustee Ltd. James was Head of Global Equities for Aberdeen Asset Management from 2000 to 2002 and prior to this worked for Murray Johnstone International, latterly as Head of Asset Allocation.

ALEX VAN DER VELDEN

Appointed as FairPensions’s Executive Director at the end of 2004. Previously, he worked in private equity and venture capital at JPMorgan, Hambrecht & Quist and Coller Capital and as a corporate finance executive at Brown Brothers Harriman & Co. Alex has volunteered for Free Tibet Campaign and Oxfam and holds a degree (summa cum laude) in finance and accounting from NortheasternUniversity in Boston. FairPensions calls for responsible investment by UK pension funds and gives a voice to people who want their pension funds to be more ethical.

ANDREW PRESTON

Has been Head of SRI at Aberdeen Asset Management since December 2000 and at the predecessor company, Murray Johnstone Ltd, since 1996. He will speak about Aberdeen's approach to SRI and about current SRI issues of concern. Aberdeen Asset Management PLC is an international investment management group, managing assets for both institutions and private individuals from offices around the world. Total group funds under management and advice amount to about £73 billion world wide. Aberdeen have provided Socially Responsible Investment services since 1988.

MARIANNE HARPER GOW

Joined Baillie Gifford in 2004 and is responsible for analysing and engaging with companies on SRI issues. She will give an overview of Baillie Gifford’s approach to SRI. Baillie Gifford & Co is a global, independent investment management firm with more than £45 billion under management and advice which manages investments globally for pension funds, charities, other institutions and retail investors. The firm is a partnership and all investment staff are based in Edinburgh. Baillie Gifford has been actively engaging with companies on environmental, social and governance issues since 1999 when the Corporate Governance team was established.

PAUL BERRIMAN

Before joining OXIP, Paul Berriman was the CEO of Deutsche Asset Management in the UK with responsibility for the management of over £50bn of assets. Unlike the traditional equity-dominated approach to the management of endowments, OXIP provides a broad, diversified portfolio in a fund of funds. OXIP’s management structure is also innovative; the colleges and management team are joint owners and the colleges are represented on the investment committee. Paul will explain the advantages and disadvantages of a fund of fund structure when dealing with ethical issues and explore the upside of a fund of fund structure in being able to invest in a wider range of assets including those with green and ethical stand.

MELVYN CORNISH

Has been University Secretary and Head of Student and Academic Services in the Universityof Edinburghsince 2002 and in that capacity has had responsibility for developing and implementing the University’s SRIpolicy which was introduced in 2003. The policy sets out a process by which concerned stakeholders can make representations to the Court about investments if it is thought that the investment supports activities wholly contrary to the University’s value systems either as reflected in the Mission Statement, the Goals and the Corporate Plan or in regard to wider issues of social, environmental and humanitarian concern.

DEREK WATSON

Spent most of his career before joining the University in the NHS, with his final three years as Deputy Director of Finance of Forth Valley Primary Care NHS Trust. He joined the University in 2002 as Financial Controller, being appointed Quaestor & Factor in 2003. As Quaestor & Factor, is responsible for leading and developing effective and efficient financial control and management within the University along with Principal's Office responsibility for Estates, Residential & Business Services, Health and Safety and Museum Collections. One of the areas of responsibility within the Estates Department is the University’s Environmental Strategy which aims to make the University’s operations more sustainable in environmental terms. Over the past 12 months he has led the University’s involvement in discussions with the student body to develop and implement a Sustainable Investment Policy for the University’s Endowment Assets.

DAVID RUSSELL

Has been working at theUniversities Superannuation Scheme (USS) since June 2001 and will be speaking about USS strategy on responsible investment, and how the fund implements that strategy. USS isthe principal pension scheme for academic and academic-related staff in UK universities. It has more than 390 participating institutions and in excess of 200,000 members and is the second largest pension scheme in the UK with more than £28 billion in invested funds. USS plays a leading role in encouraging responsible investment and is a founder signatory to the UN Principles for Responsible Investment which were launched in April 2006.

THE VENUE

The conference takes part in the ManagementSchool's Bristo Square building, which is dedicated to the MBA class and has been its home since 1990.The building is equipped with four lecture theatres, break out rooms, information resource centre, computer lab and café and it is an ideal venue for the many conferences that are held here. The ManagementSchool teaches SRI as part of its compulsory MBA courses in Business Ethics and Corporate Social Responsibility. It also runs award winning MSc in Finance and Investment.

BOOKING ARRANGEMENTS

Please use the booking form on the next page, but before doing so, please read the information below

For Staff, governors and students of Scottish FHE institutions

This event has been subsidised for those directly associated with Scottish colleges and universities as staff, members of governing bodies, or students. Hence special booking arrangements and fees will apply as follows:

• Staff and governors of university andcolleges– fee of £40; places allocated on first come first served basis at time of booking.
• Active members of student organisations in Scottish FHE - ten free spaces allocated on first come first served basis; limited to one free booking per institution (additional members can attend at reduced £40 fee). There is the option on the form to say that if a free place is not available you are prepared to pay the £40 fee.

For other applicants

Applications are welcomed from those not directly involved with universities and colleges but because the principal target audience is higher and further education,places will be available only if there is room after Scottish FHE applicants have booked and there will be a charge of £80. Applicants not from FHE will be told on 1 March if theyhave been successful in getting a place.

FURTHER INFORMATION

For more information about the content of the event contact one of the CaSPr consultants, Inga Burton (01856 811719) or John Forster (1330 850555) or e-mail .

For more information about booking arrangements contact the EAUC National Office.The Park, University of Gloucestershire, Cheltenham, Glos, GL50 2RH Phone 01242 714321,

ACKNOWLEDGEMENTS

This event is being organised through the CaSPr initiative of the Environmental Association for Universities and Colleges in association with the University of Edinburgh Management School with funding from the Scottish Further and Higher Education Funding Council.

BOOKING FORMfor CaSPr conference on SRI Edinburgh 27 March 2007

Please complete and email back this form as a Microsoft Word attachment toto arrive at latest by28 February 2007. Or if you are sending a cheque with your booking please post a paper copy of this form to the EAUC office address which is given at the foot of this page. Note, this document is “Protected” to enable the reply boxes below to work properly – but this prevents editing of the document. If for some reason you need to “Unprotect” it, please click on “tools “ on the Word toolbar and then “unprotect” (no password is needed).

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Please select from the drop down menuFHE staff - fee £40FHE Governor/Court - fee £40FHE Student - free placeFHE Student ideally free; if not will pay £40Other - fee £80

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EAUC National Office, The Park, University of Gloucestershire, Cheltenham, Glos, GL50 2RH

Phone 01242 714321, Company No: 5183502 Charity No: 1106172