Environmental, Social, Governance (ESG)
ESG investing considers environmental, social and governance factors alongside financial factors in the investment decision-making process.
In 2021 the Office of the Treasurer led the issuance of the first externally verified dual-certified Sustainability and Climate Bond Certified bond in U.S. higher education, and possible worldwide. These certifications are promulgated by the International Capital Market’s Association (ICMA) and the Climate Bonds Initiative (CBI). ICMA provides guidelines for Sustainability bonds used to finance or re-finance a combination of both green and social projects, while CBI provides a labeling schema with rigorous science-based criteria consistent with the goals of the Paris Climate Agreement to limit global warming to 1.5 degrees. This funding will support various eligible projects included in Stanford's capital plan.