Approach to ESG and Socially Responsible Investing

Dartmouth’s mission of academic and research excellence is wholly-aligned with consideration of the impact of environmental, social and governance (“ESG”) factors that may impact society. Specifically, Dartmouth is cultivating future leaders to engage in robust research and respectful dialogue to find solutions to these complex global challenges.  

The endowment is a critical tool to ensuring all current and future generations of students and researchers have the financial support to pursue these ambitious goals. As such, Dartmouth’s position is to maintain a flexible investment mandate to maximize the endowment’s earning power over the long-term.  

To learn more about Dartmouth's ESG due diligence process, please see more detailed information below. To read more about Dartmouth’s Board Statement on Investment and Social Responsibility (SISR) and the Advisory Committee on Investor Responsibility (ACIR), see menu options above.

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Dartmouth: ESG Due Diligence Approach

The Investment Office is committed to partnering with investment managers who demonstrate thoughtful engagement with us on ESG matters, in the stewardship of Dartmouth’s investment assets. Dartmouth recognizes the role that ESG factors can play in creating or potentially limiting value for investors. As such, the Investment Office is committed to a deep and robust diligence process including analysis of ESG factors as well as incorporating independent analytical analysis, comprehensive qualitative assessments, references of the team, and operational and compliance considerations with the intent of making well-informed investment decisions in the prudent stewardship of Dartmouth’s endowment.

Specifically, with regard to ESG considerations, the Investment Office diligence process includes the following actions where appropriate to mitigate risks associated with these considerations:

  • Engage with managers to evaluate their ESG-related policies and assess firm culture
  • Request and review ESG-related policies. In the event a manager does not have a policy, we will strongly encourage the manager to establish one prior to investing
  • Assess how managers incorporate the potential direct and indirect costs associated with ESG risks in their underwriting of potential portfolio investments and expected returns
  • Understand key metrics the manager uses to monitor ESG-related matters
  • Conduct reference calls and inquire about specific ESG matters pertaining to the investment opportunity
  • Inquire about and assess any ESG-related litigation matters involving the manager or its portfolio assets/companies
  • Engage in discussions with managers regarding their compliance with local, state, federal, and international laws and regulations and conduct background checks as part of initial due diligence and ongoing monitoring procedures
  • Document ESG-related matters covered in due diligence and conclude on impact as part of investment decision-making process
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