Please refer to LEI 01.2 for our proprietary approach to ESG integration
We also consider ESG factors for internally-managed Socially Responsible Investment (SRI) mandates (a.k.a as Ethical investment), under which we apply a 'negative' screening approach to companies incompatible with clients' beliefs. The screening for these mandates is based on products, certain activities, environmental and social practices and performance and corporate governance as detailed below. No broad sector or country/region is explicitly and systematically screened out, yet we may "positively screen" specific activities or industries (for instance renewable energy within the energy sector).
These strategies shall not contain any securities of companies whose primary activity or a major part thereof contributes to: a) significant negative impact on the environment; b) impairing the quality of life of individuals through its involvement in the tobacco, alcohol, gambling or adult entertainment industries; c) promoting conflict between individuals through its involvement in the military and weaponry sector; d) significant issues with the governance of the company; e) Not respecting human rights.
In the case of a), d) and e), the decisions are mostly made according to our ESG assessments. For b) and c) we currently use a limit of 10% of the revenues of a company to come from involvement in these activities for the issuer to be acceptable. Based on those criteria, an internally-generated preliminary Social Responsible Investing (SRI) Approved list of securities considered acceptable is updated twice a year. The list update is followed by a discussion to analyze the new additions to and exclusions from the list within a list-review internal committee before becoming final. To communicate the evolving information, this final list is then provided by CIBC AM to the clients as of March 31st and September 30th.