The SBI engages in Environmental, Social, and Governance (ESG) initiatives to address long-term, material risks and opportunities that are expected to lead to positive portfolio outcomes.
At its February 2020 meeting, the SBI passed a resolution concerning ESG initiatives. Consistent with its fiduciary responsibility, the Board has determined the following measures be taken:
- Continue to actively vote proxies in accordance with SBI proxy guidelines, policies, and precedents as approved by the Board.
- Continue to participate in ESG coalitions and engage with corporations on ESG related issues.
- Prepare and update a Stewardship Report and other ESG informational materials.
- Develop and implement plans for reporting and addressing ESG investment risks; to evaluate options for reducing long-term carbon exposure; and to promote efforts for greater diversity and inclusion on corporate boards and within the investment industry.
Board Resolutions on ESG
SBI Resolution on ESG Initiatives (pdf)
SBI Resolution Concerning Reduction of Investments Associated with Thermal Coal Production (pdf)
ESG Coalitions & Memberships
The SBI continues to maintain membership in ESG advocacy organizations including:
- Council of Institutional Investors (CII)
- Ceres Investor Network
- Midwest Investors Diversity Initiative (MIDI)
- United Nations Principles of Responsible Investment (PRI)
- Thirty Percent Coalition
- Climate Action 100+
- Institutional Limited Partners Association (ILPA)
- RFK Compass Initiative
These organizations provide resources, engagement opportunities and other resources to more effectively address ESG issues. Common issues addressed by the coalitions include, but are not limited to, climate; gender, racial, and ethnic diversity; shareholder rights; corporate governance; and workers’ rights. The SBI continues to research additional coalitions that will provide resources to the SBI to better address ESG issues within the SBI investment portfolios.
Manager Due Diligence
SBI investment staff engage with the SBI’s external investment managers on ESG risk within the managers’ investment portfolios and within the managers’ organizations themselves.