RII Tools and Research

Although Canada is often charged with lagging behind the US and Western Europe, Canadian institutions have made significant progress in their responsible investment initiatives over recent years. There is a need to gauge this progress in order to determine where efforts should be directed in the future. With this goal in mind, this research project sets out to document the incorporation of environmental, social and governance (ESG) factors into the investment policies and procedures of several Canadian institutions, including public and private pension funds, banks and credit unions, insurance companies, mutual funds and university pension and endowment funds.

There are a number of actions an institution can pursue as a responsible investor, including shareholder engagement, proxy voting, negative and positive screening and economically targeted investing in community development loan funds and renewable energy for example. To gather evidence of institution engagement in one or more of these activities, this report relies on an internet based search of news articles, institution websites, statements of investment policies and procedures, annual reports and investment philosophies and mandates. The report also includes information on internal programs and policies related to sustainable business practices; however the focus is on responsible investing.

The results of the mapping exercise find emerging and diverse examples of responsible investing activity in Canada, particularly with public pension funds adopting and updating responsible investing policies, banks and credit unions establishing proxy voting guidelines and participating in targeted investing and mutual fund companies offering SRI funds. Some of the larger universities are also beginning to move on this front through the adoption of responsible investing policies and funds. These results are encouraging, although there is still significant room for expansion of these initiatives in Canada.

Individual Reports:
(please click on the titles to access the reports)

Canadian Pension Plans (Public and Private)

This report includes a scan of the fifteen largest pension funds in Canada. It provides an overview of the policies and programs related to incorporating ESG factors into investment policies and procedures.

Canadian Banks and Credit Unions

The report provides a snapshot of the responsible investment practices of banks and credit unions from across Canada. It gathers evidence from a number of internet sources including websites, news articles, financial statements, annual reports and SIP&Ps. The report includes a brief description of each organization’s structure, specific examples of attempts made to incorporate ESG factors into investment and lending practices, social and environmental programs, identification of responsible investment policies and SRI funds, proxy voting guidelines, membership in social and environmental organizations, and the impact of the recession on asset sizes of the capital pools.

Canadian Insurance Companies
Insurance Excel Map

This review of ten Canadian insurance companies provides some insight into the progress they have made on responsible investing. Insurance companies are behind other Canadian institutions in their efforts to incorporate ESG into investment practices. As a result, this report will be updated as more information becomes available. There is less focus on responsible investing policies and more on programs that encourage sustainable business practices.

Canadian Mutual Funds

This resource is a synthesis of evidence collected on the responsible investing practices of Canadian mutual funds, including shareholder engagement, proxy voting and screening. It draws on a number of internet sources such as mutual fund websites, news articles, financial statements, annual reports and SIP&Ps. The report includes a brief description of each mutual fund’s organizational structure, specific examples of attempts made to incorporate ESG factors into investment practices, identification of responsible investment policies and funds, proxy voting guidelines, membership in social and environmental organizations and the impact of the recession on asset sizes of the capital pools.

Canadian University Pension and Endowment Funds

This resource scans over thirty Canadian universities for evidence that their pension and endowment funds are incorporating ESG considerations into investment decision-making. It draws on a number of internet sources including university websites, the Green Report Card, news articles, financial statements, SIP&Ps, and annual reports. Findings from this study include responsible investing policies and funds, divestments from tobacco and Darfur and a few examples of economically targeted investments such as community development loan funds. The report includes a brief description of each university’s pension and endowment fund, specific examples of attempts made to incorporate ESG factors into investment practices, identification of responsible investment policies and funds, proxy voting guidelines, identification of key drivers such as student action groups and advisory boards, and the impact of the recession on asset sizes of the capital pools.

NO SMALL CHANGE
Pension Funds and Corporate Engagement

In No Small Change, Tessa Hebb examines the ability of pension funds, now the largest single driver of financial markets around the world, to use their ownership position to change corporate practices for the sake of the bottom line and, perhaps, change the world for the better in the process.

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NO SMALL CHANGE Pension Funds and Corporate Engagement

In No Small Change, Tessa Hebb examines the ability of pension funds, now the largest single driver of financial markets around the world, to use their ownership position to change corporate practices for the sake of the bottom line and, perhaps, change the world for the better in the process.

NO SMALL CHANGE
Pension Funds and Corporate Engagement