Our Approach to Stewardship

As a long-term investor, MassPRIM recognizes that fund performance is subject to a range of complex issues that evolve over time, including from environmental, social, geopolitical, legal and policy sources. Where such issues affect the risk-adjusted returns of the PRIT Fund, we have the responsibility to assess and address them. In doing so, we will adopt a research-grounded data-driven, and strategic approach that is anchored to our fiduciary duty. This is consistent with MassPRIM’s core belief that every investment must be evaluated based on risk, return, and cost.

MassPRIM’s Stewardship efforts are specifically designed to protect and enhance the long-term sustainability and success of the PRIT Fund. Our Stewardship efforts will be evaluated based on the following objectives:

  • Enhance Risk/Return: Enhance the risk/return expectations of the PRIT Fund.
  • Create Measurable Impact: Create tangible impact by pursuing focused and measurable efforts.
  • Promote Leadership & Innovation: Promote thought leadership and explore opportunities for innovation.

MassPRIM’s Stewardship Program is guided by the Board’s Stewardship and Sustainability Committee, which was established in February 2022. The goal of the Committee is to support the Board in overseeing the Fund’s stewardship approach and efforts and to review recommendations for the Board’s approval.

MassPRIM’s Stewardship Policy and Engagement Policy guide the Fund’s stewardship strategy and efforts, including proxy voting, engagement, advocacy, and integration of material sustainability issues into the investment process.

“PRIM’s focus on stewardship will enhance our ability to deliver strong returns for beneficiaries. The proactive approach will deepen our engagement with companies and investment managers, supporting more sustainable and inclusive practices. We know, and the research supports, that addressing all organizational risks, not just those that appear immediately on a balance sheet, is critical to achieving our long-term financial goals.”—Treasurer Deborah B. Goldberg, Chair of the MassPRIM Board and the Stewardship and Sustainability Committee.

Stewardship Priorities

In August 2024, the MassPRIM Board approved the following stewardship priorities:

  • Climate Transition Planning: Encouraging climate aware strategic plans and business models
  • Fair Pay: Driving uptake of equitable and transparent pay practices
  • Sustainable Forestry: Supporting practices that reduce forest loss and promote resilience
  • Transparency: Encouraging improved disclosure on stewardship priorities

Identifying clearly defined stewardship priorities is central to MassPRIM’s approach to engaging in stewardship efforts in an intentional, focused and outcome-oriented manner.  The priorities were chosen using an objective and analytical process, based on a materiality analysis of the public markets portfolio, an assessment of corporate performance data and industry/ academic research on leading practice in positioning companies for long-term performance.

MassPRIM’s staff will work with the Stewardship Committee and the Board to define specific action steps to operationalize the priorities across the Fund. Actions that MassPRIM will use to implement these stewardship priorities include:

  • Regularly identify and monitor the factors that are most relevant to enhancing the risk/return expectations of the PRIT Fund.
  • Purposefully engage with portfolio companies, including through proxy voting.
  • Actively involve investment managers and consultants across asset classes.
  • Strategically collaborate with aligned groups.
  • Systematically assess and report on progress.

For more information about MassPRIM’s stewardship efforts, please contact Veena Ramani, Director of Stewardship.