Executive Summary i Introduction     Delivering Benefits through Sustainable and Responsible Investment Strategies 1 Chapter 1: The Terms and Strategies of Sustainable and Responsible Investing 7   Corporate Governance 7   Proxy Voting 9   Dialogue 13   Shareowner Resolutions 14   Defining an Investment Universe 19   Divestment 27   Community Investing 31 Chapter 2: Fiduciary Responsibilities 39 Financial Performance and Fiduciary Duties 39 Private Pension and Collectively Bargained Plans 42 State and Local Pensions 46 Church Pension Plans 47 Charitable Institutions 47 Chapter 3: Financial Performance of Sustainable and Responsible Investments 51 Theoretical Overview 51 Performance of the Domini Social Index 53 Performance of Socially and Environmentally Screened Mutual Funds 55 Screened vs. Unscreened Composite Returns 57 Focused Examination of a Socially Screened Pension Fund 61 Best-in-Class Investing 64 Chapter 4: Implementing Sustainable and Responsible Investment Strategies 71 Building Consensus 71 Developing an Investment Policy Statement and Proxy Voting Guidelines 73 Asset Allocation 74 Risk Management and Money Manager Selection 76 Monitoring and Evaluating Strategy Implementation 78 Appendices Appendix 1 Decision Trees – Finding the Appropriate Sustainable and Responsible Investing Strategies For Your Organization A-1 Appendix 2 Profiles of Institutions A-14 Appendix 3 Financial Performance Graphs A-27 Appendix 4 Important Fiduciary Responsibility Documents from the U.S. Department of Labor A-31 Appendix 5 Shareowner Resolutions A-49 Appendix 6 Tables of Institutions A-77 Appendix 7 Sustainable and Responsible Investing Policy Guidelines A-86 Appendix 8 History and Principles of Sustainable and Responsible Investing A-113

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