The San Francisco State University Foundation has committed to socially responsible investing, meaning they weigh the environmental, social and governance impacts of specific investments when deciding what should be a part of an institution’s overall portfolio.
The Foundation has also developed a Green Fund for donors interested in investing their long-term or endowed gifts in a carefully screened, socially responsible portfolio with an emphasis on environmental impact. The Green Fund screens the companies they include by a variety of “positive” factors (biodiversity protection, reduced carbon emissions and fair workplace practices, for example) and “negative” factors (avoiding investment in tobacco and civilian firearms, countries or companies with human rights violations or tar sands and coal operations).
Climate Action Goals
In August 2022, the Foundation updated its Investment Policy Statement for Endowed Funds to include ambitious social justice and sustainability goals. These goals include integrating racial equity in investment strategies, committing to reach net-zero by 2040 and divesting from fossil fuels by 2025.
Integrating racial and social justice
By 2027, the Foundation commits to measurable progress in growing the portfolio's diversity of underrepresented funds and fund managers. They intend on increasing diversity by investing in asset managers owned by women and/or BIPOC (Black, Indigenous and People of Color), or firms or strategies with leadership by women and/or BIPOC.
Net-zero carbon emissions by 2040
By 2040, the Foundation aims for net-zero carbon emissions using the following benchmarks:
- By 2030, the Foundation aims for its endowment’s carbon emissions to be 50% less than 2022 levels.
- By 2035, it will aim for a 75% reduction from 2022 levels.
- By 2040, it will aim for a 100% reduction from 2022 levels.
Divest in fossil fuel companies by 2025
The Foundation aims to divest from fossil fuel companies by 2025. In the meantime, no more than 5% of its endowment will be invested in fossil fuel companies.