Regents of the University of California

Regents of the University of California delegates decision-making and oversight authority for its sustainability strategy to the highest governance body. Responsibility for implementing the sustainability strategy is assigned to specific functions, teams, or committees within the institution.

The financial institution has a stewardship policy promoting environmental transitions and social best practices that align with its sustainability strategy. It also transparently identifies key sectors, clients, and investees to engage with on climate-related issues.

While Regents of the University of California identifies material sustainability impacts across its value chain, further detail on the objective criteria and evidence used for prioritisation is needed. It is recommended that performance criteria for senior executive remuneration be linked to specific sustainability targets.

The Regents of the University of California employs a Fossil Free methodology that includes thermal coal, oil, and gas, yet still has exposure to fossil fuel reserve owning companies through comingled public equity accounts. Although it is reducing this exposure by converting accounts to exclude such companies, it does not disclose the current financing directed towards them or its stance on financing new fossil fuel projects. The institution achieved a target of $1 billion in climate change solutions by 2020, with no new target set.

Recommendations include monitoring scope 3 categories, detailing footprint calculation methodology, establishing a transition plan, ensuring emissions reductions align with interim targets, disclosing client income group breakdowns, avoiding unintended divestment from low and lower-middle income countries, assessing risks related to ILO fundamental rights, identifying social risks in the net zero transition, and providing examples of actions taken on salient human rights issues in the last three years.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.