Western University’s Board of Governors has approved a stand‑alone Responsible Investing Policy, strengthening how the university governs its investments and setting out a more robust approach that has evolved over decades.
Western’s governance-led approach to investing dates to the 1980s, with formal responsible investing practices in place for more than 15 years. Over that time, Western has emerged as a sector leader, integrating environmental, social and governance (ESG) factors into investment policy and decision-making.
As Western’s responsible investing practices have evolved, the university has also strengthened how it engages with the broader investment community. In 2022, Western joined the University Network for Investor Engagement, which works directly with companies in its portfolio to drive measurable progress on sustainability and carbon reduction, and in 2023 it became a signatory to the Principles for Responsible Investment (PRI), a global initiative promoting stewardship, transparency and collaboration among investors. Since 2021, Western has been one of only a few universities to publish annual responsible investing reports.
Previously embedded within Western’s broader Investment Policy, the Responsible Investing Policy now stands alone, complementing the Investment Policy and aligning with current best practices for responsible institutional investing.
“By approving a stand-alone policy, the board has made Western’s investment framework clearer and more consistent,” said Lynn Logan, vice-president (operations and finance). “It reflects long-standing practice, aligns with industry standards and incorporates community input, while staying focused on strong governance, fiduciary responsibility and the university’s long-term financial sustainability in support of its academic mission.”
The updated policy reflects Western’s continued advancement of responsible investing practices. In January of this year, the policy was the subject of two months of consultation with the Western community, including town halls, meetings and an online survey.
The approved policy includes the six PRI, sets out proxy voting guidelines that outline how investment managers are expected to vote on Western’s behalf and increases the sustainable investment target to 15 per cent (up from 10 per cent, after reaching its previous target in 2024). Sustainable investments draw on strategies designed to deliver financial returns alongside measurable social and environmental benefits, aligned with the United Nations Sustainable Development Goals and verified through independent third party certification or recognized standards bodies. To date, Western has made six allocations totaling approximately $255 million CAD to the sustainable investing strategy, representing 10.2 per cent of the fund.
The updated policy reaffirms that the university engages with its managers and collaborates with other investors to encourage ESG practices as part of its stewardship activities. It also clarifies Western’s approach to divestment with our managers.
“Western is committed to advancing responsible investing practices, and engagement is a key part of that commitment,” said Logan. “Engaging with our managers on ESG issues, and now through proxy voting guidelines, uses our voice to help advance industry practices.”
In response to a recommendation from Senate, Western reviewed its approach to defence‑related investments specifically and confirmed it does not apply a blanket divestment approach, instead relying on external investment managers to integrate ESG factors into their decisions.
“Many of Western’s research partnerships involve technologies that have both civilian and defence applications,” said Penny Pexman, vice-president (research). “These collaborations support research and student opportunities across many disciplines and contribute to areas that are important for Canada’s security and sovereignty. It’s important that the university’s investment approach remains consistent with that research mission.”
Western manages about $3.5 billion in investments across its short‑term, mid‑term and operating and endowment funds. As of December 2025, Western’s endowment funds delivered 10‑year annualized returns of 9.5 per cent, placing the university consistently among top‑performing peers. This year, the endowment payout will provide $53 million for the university, up from $47 million last year, with that support expected to grow in the years ahead.
“Our investments are essential to Western’s long-term financial health, which is why we manage them with strong policies and oversight,” said Logan. “As a long-term investor, the university uses these funds to sustain our academic mission by supporting student financial aid, endowed chairs and professorships, graduate fellowships and research. Safeguarding them ensures we can continue to support students and programs for generations to come.”
