For the second year in a row, the University of California ranked highest among universities worldwide in incorporating climate change risks in its investment decision-making, according to the findings released today (May 2) by an independent organization.

Among all investment funds worldwide, UC ranked 17th, jumping eight spots from its position in 2015. The accolades highlight UC’s global leadership in and continued commitment to sustainability.

The Asset Owners Disclosure Project (AODP), a nonprofit organization, determines its “Global Climate 500 Index” by assessing how funds infuse climate change best practices into their investment strategies, using measures such as transparency and low-carbon investment.

“We are pleased to receive this recognition for our work in integrating climate risk in our investment process,” said UC Chief Investment Officer Jagdeep Singh Bachher.

“The work of AODP to highlight this important issue aligns with our goals as long-term investors. We will continue to collaborate with our peers and encourage companies to act in a way that will benefit investors like us with a forward-thinking outlook and a deep commitment to future generations.” 

Said AODP CEO Julian Poulter, “Leadership in the AODP Index is critical to identifying what measures can be taken to manage climate risk and how funds compare with their peers. As UC shows, this leadership is achievable with no discernible impact on returns – and will raise the bar for the rest of the industry.”

The AODP ranking reflects just one aspect of how UC is pioneering a new multipronged approach to combatting global warming. 

Last year, UC launched its framework of sustainable investing. The University is a signatory to the Paris Pledge and has committed to invest $1 billion in climate change solutions over the next five years. UC is also working with Bill Gates and the Breakthrough Energy Coalition to encourage government research and development in innovative energy technologies and to build a network of investors to support climate change solutions.