Park Foundation's Investment Portfolio Water Analysis
This report was prepared in 2015 as an internal document for discussion by the Park Foundation Board of Directors. This version is being published as a public document for the purposes of helping others understand Park Foundation’s consideration of the Foundation’s explorations on the issue of further integrating water risk and values into our investment portfolio.
The report looks at the relationship to water risk and impact of the Park Foundation’s entire investment portfolio. In this analysis, the authors examine how each of the portfolio managers analyze water, identify potential challenges, areas of mission alignment, and possible opportunities for reducing risk and increasing impact. Overall, findings include:
- The Park Foundation has already taken significant steps to reduce water risk through its current ESG (Environment, Social and Governance) screens and the addition of public-sector water solutions investments.
- While there are a few analytical tools available for assessing water risk at the company level, the field is still in development.
- Nonetheless, additional opportunities exist for the Foundation to increase the sophistication of its risk assessment and water solutions investing.
- The Foundation should continue to examine the portfolio to ensure investments fit the Foundation’s mission.
- There are opportunities for the Foundation to initiate shareholder resolutions that highlight water risk in select sectors.
- The Foundation has opportunities to educate other foundations and investors on water investing.
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