Last month, we had the opportunity to speak about methane and ESG (Environmental, Social and Governance) investing with Michael Cappucci, Senior Vice President of Compliance and Sustainable Investing at Harvard Management Company (HMC). An early leader in ESG investing, HMC was the first U.S. university endowment to sign the UN-supported PRI ESG investing initiative in 2014.
HMC manages the university’s $37 billion endowment and believes ESG risks can have indirect and direct impacts on a company’s performance. Part of HMC’s work with Principles for Responsible Investment (PRI) includes co-leading a group of institutional investors examining the global efforts underway to limit methane emissions and the opportunities to increase their effectiveness. As HMC’s representative to that group, Michael explains below why methane is a risk for all investors and how far the industry has come in just a few short years.