The California Endowment (TCE) has announced a commitment to go “all in” by aligning its $4 billion in assets under management with its mission and values.

TCE’s leaders believe that the endowment represents the largest “all in” impact investing commitment to date. With the ultimate goal of bringing 95 percent in alignment, as a first step, the endowment is developing a new impact framework to guide it in examining every investment decision for financial returns and social impact. “By committing to invest the $4 billion entrusted to TCE’s oversight towards our mission and values, we are using our mandate and power as an institutional investor to stand with the communities we serve, and to contribute to a more inclusive brand of capitalism,” wrote president and CEO Robert K. Ross, board chair Kurt Chilcott, and investment and finance committee chair Leslie B. Kautz.

In the announcement, TCE describes previous steps that have been taken to guide this action, including the implementation of “negative screens” that were applied to its investment portfolio in order to prohibit certain investments that don’t align with the commitment to racial equity, healing, and wellness, as well as carving-out $350 million for making mission- and program-related investments that tested and proved the model. In November 2023, the endowment’s board resolved to begin the process of transitioning its investment assets to support and more fully align with its vision of a California and nation that supports wellness, inclusion, and shared prosperity.

“In pursuit of this vision, we are committed to being transparent to the communities we serve and to the field of peer institutional investors,” wrote Ross, Chilcott, and Kautz. “We believe that by holding ourselves accountable and by sharing our “lessons learned” from the journey, we will have greater impact in reanimating and fulfilling the promise of America, to reshape new markets for society and to give agency and belonging to all.”