Engagement conducted with companies that are currently held in the portfolios
For certain mandates including those with an ESG focus, portfolio managers may engage companies on a case by case basis.
The ESG integration process includes the following elements: 1) We make sure to be well aware of ESG issues and we adjust our understanding of potential risks; 2) We analyse the issues that may have potentially material impacts on profitability, future business growth, risks to the company and sustainability of the business; 3) Based on our judgment, we discuss the issues with the company's management in order to raise awareness to key ESG issues.
When meeting with companies, portfolio managers will address ESG issues on a reactive basis, looking at issues that have already occured to understand how the management coped with the situation.
That being said, some of our management teams are proactive in addressing ESG issues. As long term investors, some teams are active in raising awareness to ESG issues of companies within their portfolio. Being able to assess the ESG risk is an important component of their risk management process.
We are members of the Canadian Coalition for Good Governance (CCGG). The CCGG is the pre-eminent corporate governance organization in Canada and is uniquely positioned to effect change as the voice of Canadian Institutional shareholders.
Representing the interests of institutional investors, CCGG promotes good governance practices in Canadian public companies and the improvement of the regulatory environment to best align the interests of boards and management with those of their shareholders, and to promote the efficiency and effectiveness of the Canadian capital markets.
This relationship is beneficial to us as it allows us to identify priorities primarily related to governance issues and work alongside other key industry players to promote both active ownership and the appropriate disclosure on ESG issues as well as engage with board of directors of 40 to 50 companies per year.