As a former business leader, I learned early in my career that the true value of a company cannot be captured on a balance sheet alone. Over the long term, businesses succeed or fail not only because of the assets they own or the revenue they generate, but because of how they treat their employees, how they engage with the communities in which they operate, and how effectively they adapt to a rapidly changing natural and economic environment. These factors are not peripheral to value creation -they are central to it.

At MassPRIM, our responsibility is to ensure that the PRIT Fund is positioned to generate strong, sustainable returns over decades. To do that well, we must look beyond traditional financial metrics and pay close attention to risks that arise from non-traditional sources. Identifying, understanding, and responding to these risks when they could materially impact the long-term performance of the Fund is not only part of our fiduciary duty—it is common sense for a long-term investor.

That is why, in 2022, I proposed the creation of the Stewardship & Sustainability Committee: a dedicated body to advise the PRIM Board and staff on leading practices for systematically addressing these risks across the portfolio.

Since its formation at the end of that year, the Committee has worked alongside with MassPRIM staff to make significant progress in developing a rigorous, research-based, and forward-looking stewardship framework. These efforts are intentionally designed to complement and strengthen MassPRIM’s investment processes, all in service of long-term value creation for the PRIT Fund and the pensions it supports.

In a moment marked by political, regulatory, and economic volatility, having a disciplined and methodical approach to stewardship is more important than ever. Long-term investors must be clear-eyed about the risks and opportunities that will shape markets in the decades ahead. The work of the PRIM Board, the Stewardship & Sustainability Committee, and MassPRIM staff, positions the organization to meet this challenge —and reinforces our commitment to leadership, prudence, and resilience on behalf of the Commonwealth.