We articulate our approach to engagement in our Sustainable Investment Policy ("SIP").
HMC's engagement strategy for listed equity consists of two primary elements:
1) Informational engagement: HMC sends letters encouraging action and disclosure on climate change to non-renewable energy companies in which it holds stock. HMC issues additional letters on a quarterly basis to reflect its current investment portfolio. The first letter explains Harvard University’s concerns regarding climate change and belief that companies should identify climate risks and report on them, and also discusses the University’s support for the Sustainability Accounting Standards Board ("SASB") non-renewables standard. The second letter asks companies to identify how they identify material sustainability factors, including climate change, and how they plan to report on these in public filings. HMC also asks companies to consider adopting SASB as one way to gather and report on such information.
2) Involvement in collaborations: HMC is a member of CDP and the PRI Investor Working Group on Corporate Climate Change Lobbying. HMC is working with other investors to collectively convey to world leaders and companies the need for action on climate change.