Advisory board targets investments in tobacco manufacturers, sponsors lecture series on socially responsible investing

Corporation committee approves resolution to exclude companies that manufacture tobacco products from the University's direct investments.

by Tracie Sweeney

For more than two years, the University's Advisory Committee on Corporate Responsibility in Investing (ACCRI), which advises how Brown should vote on proxy proposals, has discussed investments in tobacco products. The committee's debate culminated in a recommendation that Brown exclude tobacco manufacturers from the University's investment portfolio.

The resolution - that "the Brown Corporation exclude from Brown's direct investments, and require Brown's separate account investment managers to exclude from their direct investments, those companies that manufacture tobacco products and that the Investment Office share with all investment managers the University's desire to adhere to this investment philosophy" - was passed unanimously by the Corporation's Advisory and Executive Committee earlier this month.

"We're delighted" by the outcome, Harold Ward, professor of environmental studies and chairman of the ACCRI, said in an interview Sept. 19. According to an ACCRI report, tobacco is the most common screen among socially responsible investment groups, including the World Bank.

The University's resolution excludes tobacco manufacturers only; other institutions also exclude tobacco distributors, Ward said.

Tobacco may be in a unique situation, Ward said: It is the only legal substance which, when used as directed, causes death.

Excluding tobacco from an investment portfolio is but one example of socially responsible investing. "There is good evidence to show that irresponsible corporations" - like those that manufacture tobacco - "are bad investments," Ward said.

Socially responsible investments are those made in companies that meet certain social, ethical or moral standards. Some examples include funds that only invest in environmentally conscious companies ("green funds") or in companies that have adopted certain human rights standards for their international operations and practices. Socially responsible funds try to maximize returns while staying within these self-imposed boundaries.

In an effort to help the public understand socially responsible investing, and at the suggestion of Vice Chancellor Marie Langlois, ACCRI is sponsoring a lecture series this fall. The series, which begins Oct. 1, includes four speakers; more may be added later, Ward said.

• Oct. 1: Brown alumnus Jack Robinson, an investment manager and environmentalist, will discuss "The Case for Green Investing";
• Oct. 22: Rob Bowers, investment consultant, will discuss "Social Investing: Challenges and Opportunities for Institutional Investors";
• Oct. 29: Mindy Lubber, executive director of the Corporation for Environmentally Responsible Economies, will discuss "Institutional Investors Network on Climate Change Risk";
• Nov. 5: Tim Smith, an investment manager who has been working in the arena of socially responsible investing for more than 25 years, will discuss "Leveraging Our Voice and Vote as Investors to Promote Corporate Social Responsibility."

All lectures will begin at 4 p.m, in Smith Buonanno room 106.