PSP Investments' engagement strategy and approach is described in our Responsible Investment Policy.
Public companies are selected for engagement based on a process that takes into account such factors as ability to create shareholder value, prospects for successful engagement and relevance of ESG issues. Many of our engagements are triggered because companies have not provided sufficient information in their disclosures to fully inform our assessment of the quality of their governance practices, including the exposure to and management of environmental and social factors. We may choose to engage with companies directly, through service providers, or collaboratively with other investors. If we conduct individual engagements, our preference is to do so privately. The intensity of our engagements varies depending on the issues at stake. Some engagements entail one or two meetings over several months; others are more complex and warrant multiple meetings with board members and senior management over several years. We establish our engagement objectives based on issues for which we believe behavioural changes are warranted. Often, multiple ESG factors need to be addressed within a given company. Each of them may require varying approaches and levels of engagement, as well as different contact points.