Ethical and responsible investment

The Endowment has an eminently social character in that all its returns are allocated to research projects and scholarships, so as to promote academic and social development.

The Foundation is aware of the environmental, social and good governance (ESG) risks arising from aspects as varied as sustainability, human rights, discriminatory practices, child labor, bribery, corruption, etc. It also understands the ethical implications of some decisions related not only to investment practices, but also to the principal activity of some companies and its impact on society.

However, the Endowment does not make investments through direct participation in the share capital of companies, but rather by channeling it through ETFs and funds. For this reason, it has not established a list of excluded companies (negative screening) based on ethical criteria, ESG or responsible investment. However, in selecting these vehicles, the Investment Committee tries to fulfill those criteria, and as part of the prior due diligence, it has a list of questions for the managers that it employs as a further element of the selection.

In addition, it expects external managers to engage with companies through judicious and transparent exercise of voting rights and informal dialogue to encourage ethical behavior and a better management of ESG risks and opportunities.