The Optimum Canadian Equity strategy screens several factors, including ESG factors, to better manage active listed equities. Non-financial responsible-investment considerations are among the criteria used to select securities for the portfolio. OAM therefore uses external consultant services to assess the risks related to ESG factors.
The application of these factors varies from one sector of activity to another and will change over time.
Along with the industry, OAM takes part in making issuers aware of ESG factors and distances itself from certain industries by expressly excluding the following from its portfolios:
- Coal: Companies that obtain more than 25% of their revenues from coal-fired power plants. Moreover, any such company must have demonstrated that it has reduced its greenhouse gas (GHG) emissions in recent years and that it plans to continue to do so;
- Tobacco: Companies that obtain more than 10% of their revenues from the manufacture of tobacco products;
- Weapons: Any company involved in the manufacture and sale of antipersonnel mines, cluster munitions or biological or chemical weapons in contravention of international humanitarian law.