All external portfolio managers must comply with the Fonds’ exclusion list, which includes all companies having been deemed incompatible with the Fonds’ mission and values.
In order to identify those companies, the Fonds annually mandates an external firm to perform an ESG review. Based on this evaluation and following internal discussions, the Fonds determines which companies it will exclude from or reintegrate to its portfolio. The final exclusion list is shared with all external managers and applies to all equity and bond holdings.
In addition to its exclusion list, the Fonds has integrated CAD$1.4 billion of assets to the MSCI World Low Carbon ESG Target Screened Index. Based on the MSCI World Index, the MSCI World Low Carbon ESG Target Screened Index includes large and mid-cap stocks across 23 developed market countries. The base methodology is one of carbon footprint reduction, including standard exclusions of tobacco, controversial weapon, red flag and thermal coal stocks, and is overlaid with an ESG rating improvement.
Finally, the Fonds has mandated an external firm to vote all shares related to its externally managed funds – on its behalf and according to its voting principles.