{"id":19708,"date":"2020-09-29T15:00:25","date_gmt":"2020-09-29T19:00:25","guid":{"rendered":"https:\/\/www.benefitscanada.com\/news\/cppib-formally-sets-out-esg-expectations-for-portfolio-companies-150395"},"modified":"2020-09-29T15:00:25","modified_gmt":"2020-09-29T19:00:25","slug":"cppib-formally-sets-out-esg-expectations-for-portfolio-companies","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2020\/09\/29\/cppib-formally-sets-out-esg-expectations-for-portfolio-companies\/","title":{"rendered":"CPPIB formally sets out ESG expectations for portfolio companies"},"content":{"rendered":"
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Staff <\/span> | September 29, 2020 <\/p>\n

The Canada Pension Plan Investment Board has formally outlined its expectations for portfolio companies when it comes to environmental, social and governance issues in a new section of its latest annual report on sustainable investing.<\/p>\n

\u201cTo build trust with portfolio companies, we find it helpful to share our expectation of them with respect to considering ESG factors, as they exercise their fiduciary responsibilities to both preserve and grow shareholder value,\u201d the report said.<\/p>\n

In particular, the CPPIB highlighted it expects companies have effective boards, align incentives, adhere to its proxy voting principles and guidelines, disclose material climate change impacts, clearly articulate how integrating ESG factors has informed strategy and enhanced returns or reduced risk and have a culture that proactively identifies emerging risks and opportunities and seeks solutions to reduce or capture their potential.<\/p>\n

Read: CPPIB sustainability report shows increased investments in renewable energy<\/a><\/strong><\/p>\n

The CPPIB also noted it supports companies aligning their reporting with recommendations from the Sustainability Accounting Standards Board and the Financial Stability Board\u2019s task force on climate-related financial disclosures.<\/p>\n

In addition, the sustainability report said the CPPIB more than doubled its investment in renewable energy companies to a total of $6.6 billion as of June 30, 2020, updated its policy on sustainable investing and raised $2.2 billion through two green bonds in fiscal year 2020. As well, it engaged in numerous collaborations and partnerships, including as a signatory of the BlackNorth Initiative.<\/p>\n

\u201cLeveraging partnerships and collaborations significantly increases CPP Investments\u2019 impact on matters that improve ESG-related practices,\u201d the report said. \u201cOur collaborative efforts include, but are not limited to, seeking to improve transparency and standards on ESG, conducting research, participating in ESG-related regulation consultations, promoting governance practices and advocating for long-term thinking in the investment and corporate worlds.\u201d<\/p>\n

The sustainable investing report also shared a glimpse into the CPPIB\u2019s ESG priorities for the coming year, including continuing to develop a sustainable equities pilot program and further developing its ESG due diligence and climate change security selection framework.<\/p>\n

Read: CPPIB updates sustainable investing policy<\/a><\/strong><\/p>\n

\u201cThis new century has fundamentally changed the nature of business, with the heightened expectations of stakeholders helping to bring ESG issues to the forefront,\u201d said Mark Machin, president and chief executive officer of the CPPIB, in a press release. \u201cWe believe that by fully considering ESG risks and opportunities, we become better investors and are able to enhance returns and reduce risk for the fund\u2019s more than 20 million contributors and beneficiaries. Addressing sustainability is not just pressing for society and the planet \u2014 it is a business imperative.\u201d<\/p>\n

Read the full article at BenefitsCanada.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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