Investor Responsibility

Embracing Williams’ educational mission, the Investment Office strives to be a responsible actor in global markets: maximizing returns to help the college invest in young people and contribute to a bright future.

Sustainability

In 2015, the Investment Office was charged with developing an impact investing program for the endowment. The goal of this impact investing program is twofold:

1. Generate market rates of return, and
2. Generate a measurable impact on the reduction of global greenhouse gas

Since 2015, the endowment has committed over $50 million to funds focused on investing in companies, technologies and projects aimed at reducing global greenhouse gas emissions. These investments span multiple asset classes.

Our efforts to invest in this important theme are outlined below.

Reduction of greenhouse gas: Williams’ impact investments are estimated to have offset more than 169,800 metric tons of CO2 emissions in 2023.

graphic outlining greenouse gas reductions over 3 years: 67,700 MT of CO2 in 2021, 74,400 MT of CO2 in 2022, and 169,900 MT of CO2 in 2023

Diversity, Equity & Inclusion

As investment professionals we recognize the importance of diverse teams and perspectives for optimized decision-making. From our position within one of the nation’s great liberal arts colleges, we offer a number of learning and professional exploration programs that help students and recent graduates consider careers in asset management—including students from communities traditionally underrepresented in our field.

Environmental, Social, and Governance

We work to select the best investment managers that can earn outstanding returns for Williams College.

There are multiple criteria that go into selecting an investment manager, including:

1. The manager's team and experience;
2. Their investment track record;
3. The rigor and repeatability of their investment process;
4. Their investment philosophy/ approach; and
5. Fees/ terms.

We include ESG factors in our investment decision-making process given it is prudent risk management. As an endowment, we are the ultimate long-term investor and as such, we must and do consider all risks that could impact the Investment Pool, including ESG factors.

Accordingly, in 2016 we amended our Investment Policy Statement to state that Williams will “consider material environmental, social, and governance (“ESG”) factors across the portfolio during the investment manager selection and monitoring process.”

There are several ways in which the Investment Office takes into consideration ESG factors during the investment process and devotes time to ensuring best practices are implemented for Williams.

  • Manager Engagement:The Investment Office discusses ESG risks in meetings and conversations with potential and current managers. 
  • ESG Policy Review: The Investment Office collects, reviews, and logs manager ESG policies and annual ESG reports.
  • Evolving and Growing in Understanding of ESG Investing: The Investment Office attends industry conferences, reviews relevant research, and discusses best practices with peer investors.