Climate Investing Goals
At the end of June, The Co-operators, together with Addenda Capital, joined the Net Zero Asset Owner Alliance and set their own Climate Investing Goals. The goals include: The Co-operators’ investment portfolios, managed by Addenda, will be net-zero with respect to greenhouse gas (GHG) emissions (scopes 1-3 emissions) by 2050; an interim target to reduce emissions by 20% by 2026 from the 2019 baseline for public equities and publicly traded corporate bond portfolios. Addenda will have a significant role in supporting the implementation of these targets and will draw on experience in working with The Co-operators to support other clients in their efforts to align portfolios for net-zero results.
Participation in Industry Events
Roger Beauchemin spoke at the launch of Millani’s 5th Annual ESG Disclosure study of the Canadian Market about best practices and investor needs for corporate disclosure.
Delaney Greig was a panelist on the U.S. Fixed Income Forum Senior Delegates Roundtable on ESG which covered approaches to ESG integration and sustainable Investing in fixed income markets.
Delaney Greig also spoke at a webinar held by Wealth Professional offering investment advisors guidance on sustainable investment including market dynamics and how to assess the quality of offerings.
Photo: Millani’s 5th Annual ESG Disclosure study
PROMOTING SUSTAINABLE FINANCIAL MARKETS — RAISING STANDARDS
CFA Institute ESG Disclosure Standards for Investment Products
This quarter, Addenda submitted comments on the CFA Institute’s draft ESG Disclosure Standards for Investment Products. Addenda is largely supportive of the approach taken in the disclosure standards. We believe that the standards represent a clear step towards addressing greenwashing and over-selling in the ESG investment market. It will also help to establish common language and communication expectations for investment products between asset managers, consultants and asset owners.
Canadian Bond Investors Association Statement
This quarter, the Canadian Bond Investors Association (CBIA) issued a statement to market participants on ESG disclosure and Sustainable labeled bonds. The statement was developed by ESG committee members, including Addenda, and was approved by the CBIA Board. It provides a consensus position from Canadian bond investors to issuers, advisors and brokers on the need for issuer disclosure of meaningful and comparable information both regarding material ESG risks, controls and governance, and regarding use of proceeds for labeled bonds.