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Fonds de solidarité FTQ

PRI reporting framework 2020

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

As a long-term investor, the Fonds provides patient capital to local businesses creating jobs and generating wealth in Quebec. The Fonds’ approach to growth is in line with the inclusive growth approach: it places people at the centre of its decisions and concerns. Its main activities consist in supporting local SMEs’ development and fostering healthy saving habits among the working-age population. The Fonds actively promotes an economy at the service of people, distancing itself from short term profit seeking investment practices. It aims at generating a reasonable return for all its savers.

The Fonds is mandated by law to invest 64% of its assets in development capital investments, the majority of which must be directed towards SMEs that generate tangible economic impacts in Quebec. Remaining assets can be invested in other categories of assets and geographies for diversification purposes.

The Fonds has adopted a Sustainable Development Framework Policy, which overarches its investment and integrated asset management policies. The Sustainable Development Framework Policy frames its investment and active ownership approaches, while specifying its exclusion criteria.

The Fonds’ approach is tailored to the specific nature of its two main portfolios: Development capital investments portfolio (mainly mission-driven private equity) and Other assets portfolio.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

The Fonds’ Sustainable Development Framework Policy applies to all its assets. It was most recently updated in 2016, by the Fonds’ board of directors. Its main principles consist in:

  • Offering patient capital to Quebec’s SMEs, with the objective of creating, maintaining and protecting jobs;
  • Offering economic training to workers;
  • Complying with the highest labour relations and human rights standards;
  • Favouring local sourcing;
  • Supporting social purpose NGOs;
  • Elaborating an environmental action plan.

The Fonds has adopted voting principles, which apply to all its investments in listed equities. It also either directly engages with targeted companies on ESG themes, or via an external service provider.

01.6. Additional information [Optional].


SG 01 CC. Climate risk (Private)

SG 02. Publicly available RI policy or guidance documents


02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.








02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.






02.3. Additional information [Optional].

The Fonds’ Sustainable Development Framework Policy covers most of the above subject matters: definitions and guidelines, ESG integration and active ownership approaches, governance structure and sharing of responsibilities.

Also included above are the Fonds’ voting principles. Please note that many of the documents referred to in the above sections are only available in French.

As for reporting, the Fonds annually files its Operations and Sustainability Report, along with its GRI Index.

SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

The Fonds de solidarité FTQ has two Codes of Ethics and Conduct that stipulate essentially the same obligations. The first is for managers and unionized employees while the second is geared to officers and directors of the Fonds’ Committees and Boards. Defining the rules of conduct, these Codes are designed to, among other things, avoid conflicts of interest.

The Codes also set out a whistleblowing procedure for reporting cases of non-compliance. Moreover, all employees, officers and directors must complete an annual declaration of interests and a statement of compliance.

The Act constituting the Fonds de solidarité FTQ provide a section on conflicts of interests on the investment process.

03.3. Additional information. [Optional]

SG 04. Identifying incidents occurring within portfolios (Not Completed)