This quarter, Addenda Capital launched the Climate Transition Equities Strategies, which follow an investment approach whose objectives are to achieve compelling financial returns, while aligning with the transition to a resilient, net-zero emissions society by 2050. The Climate Transition Equities Strategies extend beyond integrating environmental, social and governance (“ESG”) considerations utilized in all of Addenda Capital’s investment decision processes; the strategies will invest in companies that clearly demonstrate their alignment with climate transition through their disclosure and performance.
Roger J. Beauchemin, President and Chief Excecutive Officer, was a panelist at a webconference addressing the issues and challenges related to responsible investing organized by the Cercle Finance du Québec. During this virtual event, Roger explained the difference between calibration and screening and how Addenda seeks to create performance gains and extra-financial results through a more inclusive approach, which includes impact investing and transition as levers for change.
Photo: Cercle Finance du Québec, March 31, 2021
Brian Minns, Vice-President, Sustainable Investing at Addenda Capital, spoke at the Responsible Investment Association’s ESG Symposium on a panel entitled, Emerging ESG Standards & Policies: What Canadian Investors Need to Know. He provided an update on the CFA Institute ESG Disclosure Standards for Investment Products and discussed the impact of emerging standards on Canadian investors. Brian was appointed to the CFA Institute’s ESG Technical Committee in 2020. The CFA Institute plans to issue the Standard in May 2021. (CFA Institute: Environmental, Social, Governance (ESG) Committees)
In March, Samantha Cameron, Analyst, Sustainable Investing at Addenda Capital, ran a virtual workshop at the Queen’s University Commerce and Engineering Environmental Conference (CEEC). During the workshop, students were introduced to the Future-Fit Business Benchmark, and how it can be used to evaluate the true sustainability of a company.
PROMOTING SUSTAINABLE FINANCIAL MARKETS — RAISING STANDARDS
Sustainability Accounting Standards Board (SASB) Human Capital Management Review
Addenda submitted comments to the SASB’s review of the human capital coverage in its reporting standards. SASB initiated the review of its human capital in late 2019 in recognition of the evolving evidence of its financial impacts as well as investor interest in more complete coverage. Addenda supports this review and expanded requirements for human capital disclosure, having identified workforce related issues as potentially material across most industries. We will incorporate the results of SASB’s work into our own investment analysis and stewardship.
Ontario Capital Markets Modernization Taskforce — Final Recommendations
In January 2021, the Ontario Capital Markets Modernization Taskforce released its final recommendations on reforms to the Ontario capital markets system. These final recommendations included several sustainable markets reforms that Addenda submitted to the Taskforce members in a joint investor submission, including: enhanced requirements for board and executive diversity disclosure and targets for women; mandatory annual advisory shareholders’ votes on executive compensation at listed companies; and, formal climate disclosure requirements in line with the Task Force on Climate-related Financial Disclosure (TCFD).