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PRI reporting framework 2019

You are in Strategy and Governance » Objectives and strategies

Objectives and strategies

SG 05. RI goals and objectives

05.1. Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities.

05.2. Additional information. [Optional]

The Investment and extrafinancial risk management committee reviews our shareholder engagement services provider activities (quarterly report). This report specifically aims at identifying milestones achieved  in the ongoing engagements over the last period covered. Both parties discuss and adjust the objectives of any given company engagement.

Moreover, various activities that are run on a continuing basis, for example, annual carbon footprinting of equity portfolios, the SDG impact review that we ran recently, provide us with renewed opportunities to review the progress of our objectives.

One must understand that our engagement service provider reviews its engagement programs on an annual basis. That is to say each company is reviewed and is either dropped or renewed when the program is confirmed. New companies may be added. The objectives set for any given company as well are reviewed and reconfirmed with confirmation of the program.


SG 06. Main goals/objectives this year

06.1. List the main responsible investment objectives that your organisation set for the reporting year.

Responsible investment processes

Key performance indicator

          Incorporate a review of ESG integration in the overall asset manager monitoring process.

Progress achieved

When we adopted our RI policy in 2005, we chose to assign responsibility for monitoring this policy to a specialized committee of the Board. Thus, the investment committee had no control over ESG issues and the RI committee had no control over investment issues.

In December 2017, our Board merged the two committees into one (IRIC) responsible for both dimensions of the investment activity. Since this committee meets ten times a year, rather than four times in the case of the RI committee, ESG and RI issues are now addressed twice as frequently.

As a result, we expect ESG integration by our portfolio managers to be taken more seriously by them as their ESG performance is monitored by the same group that monitors their financial performance.

Persuant to the implementation of this merger, we notice that every IRIC meeting covers both financial and extrafinancial themes. As well, committee members have developed a culture and a narrative about investment management and ESG integration. This has facilitated the strong support demonstrated by the IRIC when the expansion of our impact investments was put forward and had to be decided upon.

Financial performance of investments

ESG characteristics of investments

Key performance indicator

          ESG investment weighting.

Progress achieved

We have made progress in three areas:

  1. Increased size of the green bond mandate representing 15% of our bond portfolio;
  2. Increased size of assets allocated to the global equity mandate focused on sustainable growth from 6% to 10%;
  3. Negotiations with the investment manager with a view to migrating from a listed global real estate mandate to a listed sustainable global real estate mandate.

Since the end of 2018, we can say that approximately 12% of Bâtirente's assets are directly directed into investment strategies that promote the energy transition. This is well above the target indicated by Cristina Figueres in her speech at the PRI in Person Conference in Berlin in September 2017.

Other description (1)

          Carbon footprint

Key performance indicator

          Carbon footprint of our equity portfolios.

Progress achieved

Since 2015, Bâtirente has been measuring the carbon footprint of its equity portfolios on an annual basis. After four years of carbon footprinting, we have gained a better understanding of how our investment practices impact the footprint of our portfolios. We now feel confident we can undertake a new step in this ambition by developing a consistent climate policy that will be the occasion to set footprint reduction targets, distribute our carbon budget amongst our equity asset managers, better define the objectives of our engagement policy with regards to climate impact, continue to expand the scope of our alllocations to impact dedicated assets and assess the extent to which we could incorporate our fixed income portfolio into this climate policy. We expect to adopt our climate policy before the end of 2019.

Other description (2)

          SDGs Impact footprint

Key performance indicator

          SDGs Impact footprint of our global equity portfolios.

Progress achieved

In 2018, we measured the impact of our global equity portfolios in terms of sustainable development and the UN SDGs. We profited from the Impact-Cubed offer to participate in their pilot measurement of that impact through their just launched new tool. We were keen to know what outcome we would observe for our various global equity portfolios, especially regarding our Sustainable Growth Fund. In aggregate we were satisfied with the very strong performance of the latter. Another of our funds did very well through that SDG lens. SDGs would definitely represent a next step once we're done with the climate policy and its implementation.

Other activities

Key performance indicator

          Hours spent on RI initiatives. Vivacity of the Quebec PRI Network.

Progress achieved

We have maintained, and even increased, the high level of our involvement in the Réseau PRI Québec, where our CEO remained a member of the Advisory Committee and Chair of the Public Policy Committee (PG). Our Marketing Manager has joined the Network's Events Committee. 

In 2018, the PG Committee was very active. It developed a questionnaire addressed to the main political parties standing as candidates in the October 2018 provincial legislative elections. This approach aimed to raise political parties' awareness of responsible finance issues. The committee also collaborated with the London PRIs to enrich the representations made to the Federal Expert Panel. 

The Réseau PRI Québec's annual conference in November 2018 was a resounding success with more than 360 participants.

The Francophonie PRI committee began its activities in 2018 and already has several achievements to its credit, including a side event at the PRI in Person in San Francisco.

Key performance indicator

          Hours spent promoting RI to other investors.

Progress achieved

Our CEO met with a number of potential signatories. Just to name a few: the Bank of Canada Pension Fund and the Chagnon Foundation.

Key performance indicator

          Disseminate Batirente's knowledge in the RI field.

Progress achieved

The CEO of Bâtirente co-authored an article entitled "The United Nations Principles for Responsible Investment (UN PRI): A look back at ten years of promoting responsible investment (RI)" in the collective book entitled "Elements of Responsible Finance: A Multidimensional Perspective" published under the auspices of the Université de Sherbrooke in Québec.

He also modareted the workshop dedicated to shareholder engagement during the Québec PRI Network RI Conference in November 2018.

06.2. Additional information.