Caisse publishes first stewardship investing report

The Caisse de dépôt et placement du Québec published its first “Stewardship Investing Report” to demonstrate its focus on environmental, social and governance (ESG) factors.

The report discusses the institutional fund manager’s work on climate change, corporate governance, women in business and international taxation. The institutional fund manager also provides an overview of its stewardship investing.

The report comes as more investors place a priority on ESG factors. Between 2006 and 2015, Canada’s responsible investing assets grew to $1.5 trillion, up from $460 million, says the Responsible Investment Association’s latest trends report. A report from Natixis Investment Managers in February found that institutional investors are increasingly integrating ESG factors into investment analysis to manage risk and enhance returns.

Read: Why and how to address clients’ ESG values

In October, the Caisse joined a group of 30 financial institutions and pension funds managing assets of roughly $1.2 trillion to call on Canadian companies to disclose their exposure to climate change risks.

Highlights of the Caisse’s report include:

Climate change

The Caisse will reduce the carbon intensity of its portfolio by 25% by 2025. It will also increase its environmentally friendly investments by 50% by 2020. The report shows the carbon intensity of the Caisse’s portfolio for 2017, the breakdown of its emissions by sector and their weight, in terms of value, in the portfolio.

As of 2017, the fund manager also decided to implement the final recommendations of the Task Force on Climate-related Financial Disclosures.

Women in business

The Caisse joined the 30% Club, which calls upon companies to make appointments to achieve a minimum of 30% women on their boards.

The full report (currently only available in French) can be read here.

Also read:

Why ESG investing provides competitive advantage

Sustainable ways to offer responsible investing