ÍÃ×ÓÏÈÉú

May 9, 2025

The ÍÃ×ÓÏÈÉú demonstrates a strong commitment to environmental sustainability—an emphasis reflected in its strategic plan, Leadership for a Changing World, which prioritizes environmental justice and sustainability as part of its broader goal to deepen community engagement. This commitment is evident in a range of initiatives, including the development of a Climate Action Plan focused on decarbonization, and the work of the Sustainability Advisory Committee, which engages students, faculty, and staff. The student-funded Green Fund supports campus sustainability projects, while the university’s grounds practices emphasize native landscaping and water conservation. Several buildings meet LEED certification standards, and zero-waste events help minimize landfill impact. Academically, Puget Sound offers interdisciplinary programs in environmental studies and sciences, and collaborates with local organizations to advance environmental justice and sustainability efforts throughout the Tacoma region.

The university’s Board of Trustees recognizes that climate change is unique among concerns in our society in that it is global in its reach and existential in its threat. In 2016, the Board made specific commitments that have reduced and will continue to reduce fossil fuel investments significantly in the university’s endowment over time without adverse impact on investment returns that provide annual funding for student financial aid, faculty support, and university operations. To benefit from ongoing best practices in investment management, the Board also committed to review its divestment commitment every three years thereafter.

In May 2019, in May 2022, and in May 2025, the Board reaffirmed its commitment to reducing fossil fuel investments and expressed its aspiration to have an endowment entirely free of fossil fuel investments. More specifically, the Board’s commitment:

• Prohibits direct investments in publicly-traded companies that own fossil fuel reserves, as defined by the MSCI Fossil Fuel Reserves list;
• Prohibits new commitments to commingled private funds where the primary strategy is to make investments focused on hydrocarbon extraction, processing, and/or transportation; and
• Provides a fossil-fuel-free endowment option for donors (established in 2017) who want their gifts invested in a portfolio free of companies that own fossil fuel reserves.

The Board’s commitment has had significant results with virtually no impact on investment returns. The endowment’s exposure to private hydrocarbon investments has declined from 11.1% in June 2016 to 5.4% in June 2024 and is expected to further decline to under 2% by June 2026 and to under 1% by June 2032. Fossil fuel exposure within commingled funds managed by the university’s external chief investment officer and consisting of publicly traded securities was 1.7% as of June 2024 and is expected at this time to remain around that level.

The Investment Subcommittee will continue to monitor and report annually on hydrocarbon exposure in the endowment, and the Board will review its divestment commitment again in 2028.

The university also continues to monitor its investments that have a beneficial environmental and social impact. They amounted to 20.4% of the pooled endowment as of June 2024.