Luther College incorporates environmental, social, and governance (ESG) considerations into its investment approach.
Luther makes revisions to its investment policy statement to recognize new Socially Responsible Investing (SRI) goals. SRI is any investment strategy that considers both financial return and social/environmental good to bring about positive social change.
The Responsible Investment Advisory Committee is made up of students, faculty, and staff and chaired by the director of Luther's Center for Sustainable Communities. The committee interacts with the Board of Regent's investment committee. See the Luther news release announcing the committee here.
“Sustainability is integral to the management of an endowment that is intended to support the mission of Luther College long term,” said Andrew Bailey, vice president for finance and administration. “Recent changes to the college's investment policy statement acknowledge that consideration of ESG factors aligns with the investment committee's fiduciary responsibility to generate a sustainable financial return.”
Luther’s endowment has grown from $56 million in 2000 to $203 million in 2021. The endowment is enriched by gifts and strategic investments to fund internships, research, scholarships, and other aspects of student experience. The biggest chunk of Luther's endowment goes to support student scholarship. The Legacy Trust Program supports scholarships as described in this handout.
The Responsible Investment Committee serves in an advisory role to the Luther administration and to the Investment Committee of the Board of Regents. Specifically, the committee is charged to:
We would like to hear your feedback about Luther's Socially Responsible Investing. Which environmental, social and governance considerations are most important to you? Click here to send your feedback.