UBC Investment Management Trust commits $ 120 million to carbon reduction investment fund as part of ongoing responsible investment strategy
VANCOUVER, BC, September 20, 2021 / CNW / – UBC Investment Management Trust Inc. (UBC IMANT) is pleased to announce that it has made a commitment, on behalf of The University of British Columbia (UBC) endowment fund, $ 120 million to seed a Paris Aligned carbon reduction global equity fund. This commitment, associated with the $ 110 million The funding for a sustainable global opportunities strategy announced in March is part of UBC IMANT’s responsible investment strategy in conjunction with UBC’s commitment to a sustainable, low-carbon future. In 2020, UBC announced its intention to divest the fossil fuel investment endowment and a 45% reduction in carbon emissions from its portfolio within 10 years.
The $ 120 million the commitment to a quantitative equity strategy reinforces UBC IMANT’s focus on sustainability and innovation to achieve client goals. Historically, identifying quantitative managers who integrate climate change into the investment process has been a challenge due to the limited history of ESG data available. To meet this challenge, UBC IMANT rethought how and when a quantitative investment manager could integrate a climate change-based market index into the portfolio construction process.
Through this process, UBC IMANT partnered with Arrowstreet Capital, a leading quantitative investment firm and selected the MSCI Paris Aligned Index as a benchmark for their portfolio construction and investment process, as well as ” Incorporate sustainability-based proxy voting requirements into the portfolio. UBC IMANT initiated this investment on June 30, 2021 with assets that make up about five percent of UBC’s endowment. The investment reduces carbon intensity by 70% from a cap-weighted benchmark and sets an annual carbon emission reduction path needed to meet the 1.5 ° C target by 2050.
“This significant investment demonstrates UBC IMANT’s focused and ongoing approach to tackling the impacts of climate change,” says Yasir Mallick, Senior Portfolio Manager at UBC IMANT. “We would like to thank our investment partner for working with us to integrate a carbon risk budget aligned with the Paris Climate 2015 agreement into their portfolio construction and optimization process.
“When we think about our investment process and building our portfolio at UBC IMANT, it doesn’t start with identifying the limits we see in the market, it starts with our clients’ goals.” add Dawn Jia, President and CEO of UBC IMANT. “We are looking for partners – both our peers and our investment managers – who share this mindset and are willing to be innovative in tackling complex problems.
About UBC IMANT
Formed in 2003, UBC Investment Management Trust Inc. manages over $ 5 billion investment assets on behalf of University of British Columbia and related entities, including the UBC Endowment Fund, Staff Pension Plan, Working Capital Fund and other investment portfolios associated with UBC. UBC IMANT’s team of investment professionals is supplemented by an independent board of directors.
SOURCE UBC Investment Management Trust Inc.
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