Ethical Investing Statement

 

Statement of Principles for Investment Portfolio

 

As a core public institution, the Lewiston Public Library plays an essential role in the economic, social, and human development of the community.  Toward that end, its investments should be guided by the same concern for human rights, human health, diversity, equity, and inclusion, and ecological sustainability that underlie its community mission.  Whenever possible, investments will not be made in companies that violate these principles.

While recognizing that there is an obligation to seek appropriate returns on investments in support of the library’s broader mission, the Library’s endowment investments will be regularly reviewed for environmental, social, and governance (ESG) factors that conflict with our values.

Investments will be guided by the following principles:

When possible, investments in companies whose activities constitute a significant affront to ecological sustainability, human rights/values, and/or ethical management will be avoided;

A lower ESG risk investment, as documented by the Library’s investment advisor through an ESG rating system widely accepted within the investment industry,  is generally preferred to a higher risk investment;

Where appropriate, investments in Certified B Corporations or corporations with certified subsidiaries, will be prioritized;

All else being equal, investments in Maine-based companies and/or in companies that are major employers of Lewiston residents are to be prioritized, recognizing the library and its endowment should invest in the community it serves.

 

Toward these ends, the Library’s investment advisor shall provide the trustees:

An explanation of each risk factor included in its ESG evaluation: for example, what is specifically included in the environmental risk factor.  Is it a measure of environmental risk to the company’s bottom line or of the contribution of the company to environmental degradation?

A periodic report on any high risk investments specifying the risk factors resulting in an overall high risk score and an analysis of other comparable investments with lower risk scores that could be considered.

Data supporting the financial return benefit of investing in companies with higher risk scores.

 

At least annually, the Trustees shall review the endowment’s investments to ensure they align with the principles outlined above.  Specifically, the Trustees shall review with the investment advisor the five holdings considered highest risk in accordance with the advisor’s ESG rating system.

 

In addition to the above statement of general principles, there are a number of investments that, are excluded due to their inherent nature. These include companies that are primarily engaged in:

• fossil fuel extraction and refining;
• tobacco and alcohol manufacture and production;
• weapons manufacturing; or which
• employ immoral employment practices including child or forced labor.

 

Inquiries about investments:

• The Library Director and/or Board of Trustees will respond to written inquiries from members of the Lewiston community relating to specific investment holdings within the endowment.
• When a questionable investment exposure does arise, the Board of Trustees, in consultation with our Investment Advisors and the Library Director, will apply the principles of fiduciary and ethical stewardship in its consideration of what actions, if any, it may take. The LPL is a long-term investor and does not take extraordinary actions based on day to day political fluctuation; however, there may be instances where a particular exposure is concerning enough such that the LPL will choose to take extraordinary action to mitigate or eliminate the exposure.