Harvard maintains a strong presumption against divesting for non-financial reasons. From time to time, Harvard University's Corporation Committee on Shareholder Responsibility ("CCSR") addresses questions of investment (or divestment) policy. Examples include the 1989 decision to divest from companies engaged in the manufacture of tobacco products, as well as decisions in 2005 and 2006 to divest from certain companies involved in oil production activities with the Government of Sudan (which had been found to be engaging in genocide). To ensure compliance with the University's directive to divest from these securities, HMC uses negative investment screens for such securities for all of its internally managed listed equities.
HMC does not apply thematic ESG incorporation. No asset class or portfolio carries a specific ESG-themed mandate (such as clean energy). Rather, HMC seeks to integrate relevant material ESG risk factors into its investments. HMC believes integration (rather than thematic incorporation) better suits the investment mandate of Harvard University and does not unduly restrict the investment universe.