The Lewis & Clark Board of Trustees updated the college’s environmental, social and governance (ESG) investment policy on October 17 to further align our investment policy with the college’s mission and values. The amendments to the policy provide that the college will not directly invest in weapons manufacturing and strengthen the consideration of human rights in our fund manager’s due diligence when making investment decisions and evaluating ongoing investments. These policy updates were in response to recommendations from a Board subcommittee to update the ESG policy. Read the full Amended Investment Policy Statement here.
There has been significant misinformation about these policy changes in social media posts and elsewhere. The Board did not divest from Israel or companies operating in Israel, despite calls to do so. In fact, calls to divest from Israel were rejected prior to the creation of the Board subcommittee.
“Changes to the College’s ESG policy based on a particular investment’s country of origin or on any particular geopolitical situation or conflict were never on the table,” said Board Chair Paula Hayes. “Such considerations are inherently volatile, changing, and divisive, and contrary to the generally held view that the endowment should not be used to advocate specific positions on world affairs. We are not interested in considering divestment from companies incorporated in or headquartered in Israel, or specifically related to the current conflict in Israel/Palestine. Unfortunately, various social media posts and other stories have mischaracterized the Board’s action, implying it is related to Israel. This is inaccurate.”
The revisions to the ESG process were the result of a consensus-oriented campus process, in which many voices were heard and considered over many months and in multiple phases, from across the political spectrum. As one trustee noted, “The Board voted not to invest in arms manufacturers and to consider human rights values generally in our investment decisions. No country was singled out. The fact that those with very different perspectives supported this proposal demonstrates that people of differing views can come together to work on difficult issues. The way trustees, students and faculty worked together with kindness and respect for each other offers hope for more constructive dialogue on contentious topics.”
In line with our mission, Lewis & Clark has long recognized the value of incorporating ESG factors with other conventional financial analytical tools when evaluating investment opportunities. Lewis & Clark adopted a divestment approach to fossil fuel companies in 2018 and updated that approach to proactively invest in climate solutions in 2022. We expect these new policy changes to have minimal impact on the endowment. The endowment’s direct exposure to weapons manufacturers is nominal. The college does not anticipate any material change in portfolio performance or prospective returns as a result of this update to our ESG policy.
Lewis & Clark College is committed to fostering and maintaining a campus where all feel supported, welcome and challenged. We are also committed to free speech, academic inquiry, and making healthy, constructive dialogue a part of our identity as an institution and the foundation of how we relate to each other in community. Doing so requires the sharing of accurate information and the respectful exchange of perspectives.
