Kalamazoo College
Endowment Fossil Fuels Dashboard
Kalamazoo College has a climate aware portfolio with minimal exposure to fossil fuels producers and climate risk measures that are superior to those of the market.
Find what you need:
- Exposure to Fossil Fuels Producers – Learn how K College is making a difference regarding exposure to fossil fuels producers.
- Climate Risk Indicators – Understand how K College measures up to climate risk indicators.
- K College Endowment Invested with Sustainable Managers – Gain insight into the College endowment portfolio’s sustainable and traditional manager composition.
- Key Climate Risk Metrics – Access the explanation of the metrics provided within this dashboard
- Point of Contact – Reach out to the Vice President for Business and Finance for questions on this page.
Note: the data presented on this page is as of December 31, 2023
Exposure to Fossil Fuels Producers
Limited fossil fuel exposures
K College has limited exposure to fossil fuels producers, with the majority of the investments in these companies being part of low-cost index funds that have daily liquidity, and are not direct holdings rather companies that the managers have invested in.
Higher climate risk indicators
When examining a wide range of climate risk indicators the College scores well with: less emissions than the market index, a higher proportion of companies with science-based targets for emissions reduction, and a lower amount of climate value-at-risk.
Seeking sustainable management
The College also seeks investments with asset managers that account for material sustainability factors in their process, strategy, and portfolio construction; over the last 6 years the majority of new investment decisions have moved capital to sustainable managers.
Total Public Equity Exposure
Notes for Total Public Equity Exposure
- MSCI ACWI – The acronym for the Morgan Stanley Capital International All Country World Index
- Climate data calculated with manager holdings as of 4Q23. Market value calculations based on Kalamazoo College total NAV as of 1/31/2024
For more details on the metrics provided, visit the section on Key Climate Risk Metrics Explained.
K College
(%)
3.0
K College
($)
$4.8 M
MSCI ACWI
(%)
4.5
MSCI ACWI
($)
$7.1 M
Top 10 Companies Public Equity Exposure
| Top 10 Companies | K College (%) | K College ($) | MSCI ACWI (%) | MSCI ACWI ($) | Manager |
|---|---|---|---|---|---|
| 1. Exxon Mobil | 0.3 | $0.5M | 0.6 | $0.9M | R1K Value |
| 2. Chevron Corporation | 0.2 | $0.3M | 0.4 | $0.6M | R1K Value |
| 3. Shell PLC | 0.1 | $0.2M | 0.3 | $0.5M | Artisan |
| 4. Conocophillips | 0.1 | $0.2M | 0.2 | $0.3M | R1K Value |
| 5. Reliance Industries Limited | 0.1 | $0.2M | 0.1 | $0.2M | MFS Int’l Growth |
| 6. Green Plains Inc. | 0.1 | $0.1M | 0.0 | $0.0M | GMO Climate, R2K Index |
| 7. Clean Energy Fuels Corp. | 0.1 | $0.1M | 0.0 | $0.0M | GMO Climate, R2K Index |
| 8. TotalEnergies SE | 0.1 | $0.1M | 0.2 | $0.4M | Artisan |
| 9. EOG Resources, Inc. | 0.1 | $0.1M | 0.1 | $0.2M | R1K Value |
| 10. Phillips 66 | 0.0 | $0.1M | 0.1 | $0.1M | R1K Value |
| Top 10 Companies Total | 1.2 | $1.9M | 2.0 | $3.2M |
Climate Risk Indicators
Notes for Climate Risk Indicators
- VAR – The climate value-at-risk
- SBTi Targets – Science Based Targets initiative and
For more details on the metrics provided, visit the section on Key Climate Risk Metrics Explained.
Portfolio Emissions
| Key Climate Risk Indicators | K College | ACWI Index | Difference |
|---|---|---|---|
| Carbon Intensity – tons CO2/$ million sales | 101.2 | 120.9 | 16%< Index |
| Carbon Emissions – tons/$ million | 67,255 | 84,105 | 20%< Index |
Company Transition Plans
| Key Climate Risk Indicators | K College | ACWI Index | Difference |
|---|---|---|---|
| Companies with any emissions reduction target | 78.5% | 83.6% | 6%< Index |
| Companies with SBTi approved targets | 38.8% | 36.6% | 6%< Index |
| Proportion of emissions covered by SBTs | 40.0% | 20.8% | 92%> Index |
Climate Value-at-Risk (VAR)
| Key Climate Risk Indicators | K College | ACWI Index | Difference |
|---|---|---|---|
| Transition Risk | -1.1% | -4.6% | 76%<Index |
| Physical Risk | -10.9% | -10.8% | 1%> Index |
| Total Climate VAR | -12.0% | -15.4% | 22%<Index |
K College Endowment Invested in Sustainable Managers
Notes for the K College Endowment Portfolio in Sustainable Managers
- NAV – Net Asset Value
- For cumulative new managers (since 2018) – If total public equities ($158.8M as of 1/31/2024) were proportionally invested in the passive MSCI ACWI index
For more details on the metrics provided, visit the section on Key Climate Risk Metrics Explained.
$106.4M of the $259.4M portfolio is sustainably aligned
36 new investments since 2018.
Out of the 36 new investments, 19 are sustainable
Key Climate Risk Metrics Explained
| Metrics | What is it? | How do we use it? | Role & Effectiveness |
|---|---|---|---|
| MSCI ACWI | The Morgan Stanley Capital International All Country World Index (MSCI ACWI) is a stock index designed to track broad global equity-market performance and is comprised of approximately 3000 companies. | Allows us to benchmark our performance and progress against a standard index. | N/A |
| Fossil Fuel Reserves (MSCI) | A metric that explains direct & indirect exposure to fossil fuel reserves and is not limited to energy sector companies alone, but also identifies companies in other sectors that have reserves on balance sheet. | It helps us explain the % of the portfolio invested in underlying companies that have proved and probable thermal coal, oil, and/or gas reserves used for energy purposes. | A holdings-based analysis that screens for a company that may derive revenue from owning Fossil Fuel businesses or reserves. |
| Weighted Average Carbon Intensity | A metric that explains the level of carbon emissions and carbon-intensive companies within the portfolio. | It allows us to assess the efficiency of the portfolio in terms of emissions per unit of output. We normalize the metric across managers by tying it to revenue to reasonably gauge gross carbon emissions. | An insightful analysis, that will only improve as emission disclosure increases; it provides a measure of emissions that is useful for comparisons with peers & benchmarks and tracking alignment with Net Zero objectives. |
| Climate Value-at-Risk (VAR) | A metric that represents the present value of aggregated future policy risk costs, technology opportunity profits, and extreme physical scenarios (weather events). | In modeling out a world 2.0-degree scenario, the analysis allows us to understand where companies are making positive paths forward through technology opportunities and where funds have exposure to negative consequences due to policy implementation or extreme weather events. | The most comprehensive analysis to date; it allows us to monetize the risk of a given security, manager, or portfolio. |
| SBTi Targets | A company’s carbon emissions reduction target has been approved by the Science Based Targets initiative (SBTi). | Allows us to assess and align ourselves with companies that have made formal targets to reach Net Zero by a certain year, and/or have made deliberate carbon emission reduction targets via Scope 1-3. | A useful way to assess company targets in the energy transition towards a net zero world. |
| Net Zero Targets | A target for companies that have made formal pledges or plans for: reaching -95% or higher reductions in aggregate Scope 1, Scope 2 reported or estimated and -67% (NZ 2030) or -90% (NZ 2050) of Scope 3 estimated absolute emissions by target year. | Allows us to assess and align ourselves with companies that have made formal targets to reach Net Zero by a certain year, and/or have made deliberate carbon emission reduction targets via Scope 1-3. | A useful way to assess company targets in the energy transition towards a net zero world. |
Point of Contact
For questions, please contact Lisa VanDeWeert, Vice President for Business and Finance at Lisa.VanDeWeert@kzoo.edu.