USD Becomes One of the First Universities in the World to Align its Investment Policy with Environmental and Human Dignity Goals

San Diego, CA –  The University of San Diego is delighted to announce that at its September meeting, the University of San Diego Board of Trustees unanimously adopted an amended Investment Policy aligned with Pope Francis’s encyclical on the environment, Laudato Si’-- one of the first universities in the world to do so.

In the 2015 papal encyclical, Pope Francis called for urgent action to care for our common home, the poor, and the vulnerable who are disproportionately impacted by global environmental problems such as climate change, pollution, access to clean water and loss of biodiversity.

Today, the Catholic Church celebrates the feast of St. Francis of Assisi, one of the most well-known and beloved figures in Christianity.  Revered for his compassion for the poor, nature and animals, Francis is considered the patron saint of ecology. 

“This change to the investment policy reflects the university’s commitment to social justice, stewardship of the planet, protection of human life and dignity, and promotion of the common good into its investments, said James T. Harris, president of the University of San Diego.  “This change is part of multiple commitments that USD is making to set the standard to ensure a healthy environment and a sustainable common home for future generations.”

Impactful strides have been made since 2016:

• The University has made no direct investments in fossil fuels and reduced its exposure to this category by approximately 60 percent.
• As of June 30, only three percent of USD’s $818 million long-term investment pool was invested in fossil fuels.
• The university has committed approximately $60 million toward impact investments in all three components of the Environmental, Social and Governance (ESG) practices, a growth of more than 400 percent since 2016.

By 2035, the University will seek alternatives to eliminate its exposure from fossil fuel companies in alignment with its commitment to carbon neutrality.

This landmark decision stems from recommendations made by a Socially Responsible Investing Task Force composed of USD students, alumni, faculty, staff and trustees. 

“The task force carefully considered the concerns of USD’s community members along with the ethical and fiduciary responsibilities of the investment committee and the board.  Ultimately, working together allowed us to reach a set of unanimous recommendations that each stakeholder group was proud to support,” said Leandro Festino, USD Board of Trustees Investment Committee Chair.

“While the university has proactively taken steps to avoid new investments in fossil fuels for many years now, officially approving these policy changes is a significant expression of the alignment of the values of our institution and demonstrates clearly our commitment to our planet,” said Donald Knauss, USD Chairman of the Board of Trustees.

About the University of San Diego

Strengthened by the Catholic intellectual tradition, we confront humanity’s challenges by fostering peace, working for justice and leading with love. With more than 8,000 students from 75 countries and 44 states, USD is the youngest independent institution on the U.S. News & World Report list of top 100 universities in the United States. USD’s eight academic divisions include the College of Arts and Sciences, the Knauss School of Business, the Shiley-Marcos School of Engineering, the School of Law, the School of Leadership and Education Sciences, the Hahn School of Nursing and Health Science, the Joan B. Kroc School of Peace Studies, and the Division of Professional and Continuing Education. In 2021, USD was named a “Laudato Si’ University” by the Vatican with a seven-year commitment to address humanity’s urgent challenges by working together to take care of our common home.