In 2014, the Fossil Free Pitt Coalition began asking the University to directly address its fossil fuel investments.
In January 2018, Chancellor Patrick Gallagher created a Socially Responsible Investment (SRI) Committee of faculty, students, and staff “to investigate and provide a foundation of facts that could be used by the University to explore socially responsible investment (SRI) strategies that may be suitable for consideration for the University’s endowment.”
The 2018-19 SRI Committee “met numerous times, conducted a literature search on relevant topics, collected data on SRI funds and their relative performance and costs, analyzed stated SRI practices of a limited set of other universities with large endowments, and solicited the views of the University of Pittsburgh’s community and stakeholders through two open forums and a public online forum.” In April 2019, the SRI Committee presented its report to the Chancellor (PDF).
In August 2019, Chancellor Gallagher directed the Office of Finance to 1) Develop ESG criteria and present it to the Board’s Investment Committee; 2) Establish an approach for “screening and presenting proposed investment exclusions” to the Board; and 3) Expand and leverage the University’s long-term sustainability plan.
In February 2020, Pitt’s Board adopted an SRI Screening Process (PDF).
In March 2020, the University released its ESG Policy (PDF).
In June 2020, Pitt’s Board of Trustees activated the SRI Screening Process and created the 2020-21 Board of Trustees Ad Hoc Committee on Fossil Fuels, to provide a report on “options on whether, to what extent, and via what methods the University, in its Endowment, should consider divestment from fossil fuels in existing and/or future investments;” all Ad Hoc Committee members were University Board members.
The 2021 report (PDF) of the Ad Hoc Committee on Fossil Fuels was adopted in full by the Board of Trustees in February 2021, including the following options for future action:
- Actively choose to not apply a negative screen to the Endowment with respect to fossil fuels.
- Support the University’s existing ESG Policy (PDF) and direct the University to apply ESG considerations to every investment decision.
- Support the Board’s Investment Committee in monitoring expectations that the Endowment’s private investments in fossil fuels will go to zero by the end of 2035, while continuing to pursue strong “risk-adjusted financial returns.”
- Direct the Board’s Investment Committee to develop and implement a strategy to seek investments that help reduce, avoid, and eliminate greenhouse emissions.
- Direct the University to provide greater transparency regarding the Endowment generally, as well as in its fossil fuel investment trends.
- Support the University in publishing its first public ESG Report in 2021, which will address ESG considerations generally as well as fossil fuel investments.
- Support “regular, clear, and accessible University communication, education, and engagement” about the Endowment’s “status, trends, and current and future fossil fuel exposure…including an annual update to the Board and University community.”
There is currently no separate SRI or ESG Committee at the University. All CEF decision-making is governed by the Investment Committee (which has Trustee, faculty, staff, and student members), which “provides oversight and guidance to the Chief Investment Officer regarding the management of the University endowment.” (2021 Ad Hoc Report)
The University of Pittsburgh is committed to incorporating ESG factors in the management of the Consolidated Endowment Fund (CEF), the University's largest financial asset.