IMCO is focused on delivering the returns that help our clients meet their long-term financial objectives. Assessing and managing risk is an integral part of how we meet our fiduciary duty. Incorporating environmental, social and governance (ESG) factors in the investment process helps to better manage risk and contributes to required long term performance. We believe ESG factors must be considered across asset classes. We also support ESG initiatives that seek improved corporate disclosure, which in turn empower investors to make more effective evaluations of risk and return.
We consider ESG factors alongside other factors when making investment decisions, because they can affect risk and return. For example, we can evaluate how our external fund managers have integrated ESG into their management processes. In our direct investments, including infrastructure and real estate, ESG factors are evaluated, where applicable, in the due diligence process and monitored over the life of the investments.
Role of Engagement
We believe that being an engaged investor, including actively voting shares, helps us to better manage risk and contribute to long-term performance.
IMCO, or our external managers, can discuss concerns with corporate boards or management teams. We can also collaborate with other institutional investors to have a more pronounced impact on ESG practices, such as advocating for improved corporate disclosure. Or, we can participate in domestic and international discussions regarding standards and best practices in responsible investing.
IMCO is developing a track record for putting our responsible investing approach into action. We continue to look at ways to manage ESG factors and to collaborate with asset management peers.
One of our real estate partners, Cadillac Fairview, is an industry leader in their commitment to environmental sustainability. We are currently working with Cadillac Fairview to build a new 32-storey office tower to LEED platinum specifications, one of several properties that IMCO manages on behalf of its clients that have obtained or are working towards LEED certification.
30% Club Canada
We recently became members of the 30% Club Canada and joined our peers in signing a joint investor statement that calls for 30% representation of women on the boards and executive management teams of S&P/TSX composite index companies by 2022. The 30% Club is a global initiative comprised of regional groups. The 30% Club is not seeking mandatory quotas. It supports a voluntary approach to meaningful, sustainable change.
Canadian Coalition for Good Governance (CCGG)
IMCO recently became a member of the Canadian Coalition for Good Governance (CCGG). In doing so, we have joined leading pension funds and asset managers from across Canada in promoting good governance practices in Canadian public companies and the improvement of the regulatory environment to best align the interests of boards with those of their shareholders, and to promote the efficiency of Canadian capital markets. IMCO will support CCGG’s direct engagement with Canadian public companies and CCGG’s public policy submissions, guidance and research.
Investment Management Corporation of Ontario
200 King Street West, Suite 2300
Toronto ON M5H 3T4
Toll Free: 844-383-4626