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Responsible investments at SFU

At 51ÁÔÆæÈë¿Ú (SFU), we are committed to managing our investments in a way that supports both long-term financial sustainability and our values as a public research university. Every decision is made with future generations in mind—balancing responsible investing with financial resilience.

We do this through a responsible investing approach grounded in Environmental, Social, and Governance (ESG) principles, guided by global standards, and strengthened through active engagement with the organizations we invest in.

This page is a resource for 51ÁÔÆæÈë¿Úcommunity members interested in learning about responsible investments at the university. 

What is responsible investing?

Responsible investing means considering not only financial returns, but also how investments affect people, communities and the environment.

At SFU, we apply ESG principles to assess whether investments are sustainable and resilient over the long term. Examples of ESG considerations include:

  • Environmental: climate change and nature such as the exclusion of investments in fossil fuel companies;
  • Social: respect for human rights such as the exclusion of investments in  manufacturers;
  • Governance: corporate governance such as independent board composition, transparency and ethical practices.

These factors help us evaluate risk, opportunity and long-term value.

How 51ÁÔÆæÈë¿Úinvests

Most of SFU’s investments are managed by external investment managers with expertise in balancing strong financial returns and effectively managing ESG-related risks and opportunities.

  • These managers invest on SFU’s behalf in funds that incorporate ESG considerations
  • Their scale and expertise help improve performance and reduce risk for a portfolio the size of SFU’s

In addition:

  • Most investments are held in large pooled funds where 51ÁÔÆæÈë¿Úis one of many investors 
  • The overall portfolio is broadly diversified across companies, industries, sectors and geographic regions
  • We seek a strong alignment between competitive returns and responsible investment practices

This approach allows 51ÁÔÆæÈë¿Úto benefit from diversification, professional management and consistent ESG integration.

How we put ESG into practice

Integrated decision-making

ESG considerations are built into investment selection and oversight, alongside financial performance.

SFU’s approach aligns with the United Nations-supported Principles for Responsible Investment (PRI)—a globally recognized framework used by institutional investors.

Through these principles, we commit to:

  • Integrating ESG into investment decisions
  • Being active, responsible owners
  • Advocating for greater transparency and disclosure
  • Promoting the Principles for Responsible Investment
  • Collaborating to increase impact
  • Reporting on our progress

These commitments reinforce our focus on responsible stewardship, long-term performance and real-world impact.

Active ownership and engagement

Through our investment managers and partners, 51ÁÔÆæÈë¿Úsupports:

  • Engagement with companies
  • Collaboration with peers
  • Shareholder voting
  • Ongoing improvement in ESG practices

This enables influence at scale, especially through pooled investment structures.

Transparency and accountability

We are committed to clear ESG reporting and monitoring progress over time. This includes quarterly confirmation with the Board of Governors on material ESG risks and concerns and an annual responsible investment report which will be made publicly available.

Why 51ÁÔÆæÈë¿Úprioritizes engagement over divestment

We recognize that our community—students, faculty and staff—cares deeply about how 51ÁÔÆæÈë¿Úinvests.

Engagement enables impact

Remaining invested allows 51ÁÔÆæÈë¿Úand its managers to:

  • Influence company behaviour through engagement and voting
  • Support companies transitioning to more sustainable practices
  • Collaborate with other investors to drive system-wide change

Divestment reduces influence as when investments are sold:

  • 51ÁÔÆæÈë¿Úno longer has a direct role in influencing outcomes
  • Ownership may shift to investors with fewer ESG priorities
  • Opportunities to drive improvement are reduced

Complex challenges require participation

Issues such as climate change require change across entire industries. Engagement allows 51ÁÔÆæÈë¿Úto help shape that transition, rather than step away from it.

Divestment remains an important option within SFU’s approach, used when:

  • Sustained engagement does not lead to meaningful progress
  • Risks become unacceptable
  • Investments are fundamentally misaligned with SFU’s values or policies

In this context, divestment is an escalation step—not the starting point.

Our commitment to the 51ÁÔÆæÈë¿Úcommunity

51ÁÔÆæÈë¿Úis committed to:

  • Responsible and sustainable investment practices
  • Leveraging expert managers to enhance performance and mitigate risk
  • Integrating ESG across all investments
  • Active engagement and collaboration to support positive change
  • Disciplined ESG risk monitoring and management process
  • Transparency and ongoing communication
  • Listening to and learning from our community

Responsible investing is an evolving practice. By combining ESG principles, active ownership, alignment with global standards like the PRI, and experienced investment management, 51ÁÔÆæÈë¿Úaims to support a future that is financially strong, socially responsible, and environmentally sustainable. To ensure consistency and comparability in how ESG is assessed, many of our investment managers use third-party tools such as . These tools provide a standardized, data-driven framework for evaluating companies’ exposure to, and management of, financially material, industry-specific sustainability risks and opportunities. 

Reporting

The University is committed to transparency and accountability through structured reporting. 51ÁÔÆæÈë¿ÚPublic Transparency Reports (PRI) and Custodial Statement of Endowment Investment reports will continue to be made available on the Finance website: . In addition, management will provide the Board of Governors with quarterly confirmation regarding any material ESG risks or concerns, and an annual responsible investment report will be made publicly available. Ongoing public reporting increases accountability and provides the university community with clear visibility into investment practices and outcomes.