The University of Texas System is one of the most prominent school systems in the country. Mission to “improve the human condition in Texas, our country, and our world.” The system boasts the second largest endowment in the country at $43. a billion However, despite its mission, University of Texas/Texas A&M Investment Management Company Investments (Utimco), the company responsible for managing UT’s endowment; IWe value human rights and consideration for the environment.
This lack of concern leads them to ignore the various beliefs of the UT community through their investments in fossil fuels and weapons manufacturing. According to records from 2011 statement Bruce Zimmerman, former CEO of UTIMCO, said the company does not consider “social or political concerns” in its investments.
UTIMCO’s refusal to consider the harmful effects of its investments shows a lack of social responsibility to the UT community. To reduce the harm caused by the UT system, UTIMCO must practice ethical investing and promote financial oversight.
In 2023, Amnesty International will report As a result, UT’s system received failing scores in investment responsibility, human rights due diligence, transparency, and environmental, social, and governance policies.
UT was one of the two donor organizations with the lowest scores in the report. according to page 37 According to the report, UTIMCO’s policy did not include investment obligations for environmental or human rights concerns.
To remain a top university, UT must promote excellence in all areas, including fiscal policy. UTIMCO’s indifference to societal concerns highlights a failure to uphold the high ethical standards expected of universities.
“UT’s motto is “What starts here changes the world.” ” Thomas Paraima, Robert M. Armstrong Centennial Classics Professor. “But is it a good thing or a bad thing? … I think there are a lot of ways that what’s being done here could be better.”
Paraima said people have been calling for a university study on the social responsibility of endowments for 30 years.
UTIMCO’s lack of interest in financial ethics and failure to submit reports on its investments ignores the concerns of students, faculty, and alumni, who are all stakeholders in UTIMCO’s investments.
“Higher education institutions are social service institutions,” said Nicole Trico, managing director of the Intentional Giving Network. “And (they) have a variety of stakeholders who are committed to supporting them.”
Professor Toriko said institutions need to lead by example and “do their best in terms of how they behave and make sure that is consistent with what they teach.”
In addition to a lack of ethical responsibility, UTIMCO’s inadequate oversight highlights a lack of financial responsibility.
“The value (of stocks) is affected by things that can suddenly reduce their value,” said energy law professor David Spence. “As the climate changes, more and more properties are exposed to risks they did not previously experience.”
The economic results of UTIMCO’s investments in the oil and gas industry include: Base of About world oil prices.Due to recent international promotion away Compared to investments from fossil fuels, UT investments pose more significant financial risks to the university.
Additionally, the value of UTIMCO’s investments in weapons manufacturing companies. Diminished It increased by approximately $28 million between 2021 and 2022. This is a clear sign that these investments are not producing the expected economic returns.
UTIMCO could not be reached for comment.
Utimco We must make a conscious effort to practice ethical investing that aligns with the values of the UT community. By integrating human rights, environmental considerations, and social responsibility into endowment management, UTIMCO upholds its ethical responsibilities to the university community and society at large.
Sanders is a freshman journalism and government student from Wheaton, Illinois.
