Published on: February 1, 2019
From left to right: Milla Craig, Founder and President, Millani; Dr. Ben Caldecott, Smith School of Enterprise and the Environment, University of Oxford and member of the UK Green Finance Taskforce; Kim Thomassin, Executive Vice President, Legal Affairs and Secretariat, CDPQ and member of the Canadian Expert Panel on Sustainable Finance; Sean Kidney, Co-Founder and CEO, Climate Bonds Initiative and member of the EU High Level Expert Group on Sustainable Finance; and Roger Beauchemin, President and CEO, Addenda Capital.
Thought Leadership
Samantha Cameron, Junior Analyst, Sustainable Investing, wrote an article about data security. It was published on the Responsible Investment Association's (RIA) new website: "Phishing for Better Cyber Risk Disclosure".
Speaking Engagements
In November, Brian Minns, Vice-President, Sustainable Investing, participated in a panel discussion on the Evolution of ESG at the Canadian Bond Investors' Association 2018 Conference in Toronto. He took the opportunity to articulate the process used at Addenda to measure and analyze an issuer's ESG risks and opportunities.
Roger Beauchemin, President and CEO, congratulated the RIA for their latest report on Responsible Investing Trends in Canada at their launch event in Montréal in November.
In addition, Mr. Beauchemin was a guest speaker at a World Bank event held at the George Washington University in Washington, D.C. to celebrate the 10-year anniversary of the World Bank's first Green Bond. In the panel discussion "Looking Forward: What's Next? Roadmap for Sustainable Capital Markets", he discussed Addenda's sustainable investing journey, from ESG integration to impact investing.
Barbara Lambert, Senior Portfolio Manager, Fixed Income and Sustainable Investing, participated in a panel on Thematic Investing and Impact Investing at the PRI Québec annual conference in Montréal.
PROMOTING SUSTAINABLE FINANCIAL MARKETS — RAISING STANDARDS
Letter to SEC Regarding Proxy Process
In advance of the U.S. Securities and Exchange Commission (SEC) roundtable discussion on the Proxy Process, Addenda co-signed a letter to the SEC on the matter. Drafted by the Ceres policy working group, the letter outlines arguments in support of SEC rule 14a-8 on shareholder resolutions. Signing on to the letter benefits Addenda and our clients because it supports maintaining the ability of shareholders to file shareholder proposals, which can be an important tool for investors seeking to engage in meaningful dialogues with companies.
Statement of Investor Commitment to Support a Just Transition on Climate Change
Addenda signed on to the Statement of Investor Commitment to Support a Just Transition on Climate Change, recognizing the social dimension of the transition to a low-carbon economy. A just transition is one in which social inclusion, including implications for workplaces and wider communities, are considered alongside climate action. The statement has been endorsed by 126 institutions representing US$6 trillion in assets under management. As part of this work, the final guide on Just Transition was launched in Poland during COP24.
| PRODUCT-SPECIFIC INITIATIVES |
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ESG INTEGRATION — BETTER INVESTMENT DECISIONS
| Company |  | Country | | Issues | Strategies | | Outcome |
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| Major telecommunications company | | Canada | | Various issues, including data security and customer privacy, governance, and energy management board diversity. |  | | Better understanding of Company's risk awareness and related policies, procedures and controls. |
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| Several portfolio companies in Consumer Discretionary, Communication Services, Commercial & Professional Services, and Transportation | | Various | | Various issues |  | | Better understanding of material ESG issues, potential financial impacts and engagement topics. |
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| Most of the corporate issuers held widely in portfolios | | Various | | Special attention to ESG-related controversies |  | | ESG concerns on various issuers were highlighted to Portfolio Managers. |
STEWARDSHIP — TAKING CARE OF YOUR INVESTMENTS |
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| Company | | Country | | Issues | Strategies | | Outcome |
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| Major energy company | | Canada | | Climate Change
CEO Transition | | | Addenda provided feedback on various ESG topics and was assured that the CEO transition will not cause changes to the Company's sustainability strategy. |
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| 20+ portfolio companies | | Various | | Climate Change
(3-year Stewardship Plan) |  | | Addenda hopes to form a better understanding of how a company manages the risks and opportunities presented by climate change and to promote a transition to a low-carbon, climate resilient society. |
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| 10+ portfolio companies | | Various | | Sustainability Accounting Standards Board (SASB) Standards |  | | Addenda hopes to see more companies report using the Standards, which will allow investors to make better-informed investment decisions. |
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| Leading producer of cocoa products and chocolate | | Switzerland | | Sustainable Sourcing
Child Labour
Board Diversity |  | | Addenda learned that the company is planning to add two female directors to the board. |
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| Large industrial gases company | | U.S. | | Energy Intensity Risk | | | Addenda was pleased to see that the company maintains very good relationships with power providers and invests in energy saving improvements. This allows the Company to maintain a competitive cost structure. |
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| 35 portfolio companies | | Various | | Board Diversity
(3-year Stewardship Plan) |  | | By publishing board diversity policies, those companies would allow investors to more effectively evaluate the corporate governance practices they are undertaking as they relate to board diversity. |
Details of ESG integration and Stewardship activities are communicated to clients in the respective strategies.