Following more than four months of consultation with the McMaster community and reviews at the Investment Pool Committee and the Planning and Resources Committee, the Board of Governors has approved a new set of Principles of Responsible Investment.

“The Principles do not support divestment but enshrine a commitment to responsible investing based on the university’s role as an institution of higher learning,” said President David Farrar. “Their purpose is not to encourage or advocate for an institutional position on social or geopolitical issues, nor to exacerbate tensions on our campus by adopting the position of one group over another, either implicitly or explicitly.

“Instead, the goal is to provide a high-level framework to assist the board in its fiduciary duty to make investment related decisions that are in the best interest of the university and that support research, teaching, faculty, students and the university as a whole.”

Under the McMaster University Act, the Board of Governors is primarily responsible for overseeing the university’s investments.

About 2,600 submissions were received during the consultations. More details on the consultation input can be found in the President’s message to the Board.

The university made a commitment last spring, as part of the agreement to end the encampment, to review and update its Social Responsibility and Investments policy from 1980. The Principles of Responsible Investment document was drafted to replace the policy and to work in alignment with McMaster’s Statement of Investment Policies and Procedures, which is the primary policy document guiding the investment of university funds.

The Investments Portal was also launched late last year as part of the agreement to end the encampment. It is available at any time for members of the McMaster community to share their views on university investments. The Principles will be a guide for the Investment Pool Committee as it reviews Portal submissions.

They do not support divestment but instead prioritize the fiduciary responsibilities of the Board and support the long-term health of our institution.