Working to change the investment landscape in order to allocate capital more efficiently

Addenda Capital plays an active role in promoting sustainable financial markets with the ultimate goal of further optimizing long-term investment returns for our clients. We support the integrity and sustainability of financial markets through collaborative investor initiatives and public policy, regulatory and standards submissions.

Consult our article on Promoting Sustainable Financial Markets

Submissions and Statements

DateDetails
October 1, 2020 Canadian Investor Statement on Diversity and Inclusion

We were a founding signatory to the Canadian Investor Statement on Diversity & Inclusion, which the Responsible Investment Association (RiA) prepared with the input of the Sustaining Members. The Statement is focused on the role we can play, as an institutional investor, in addressing the inequities and discrimination that exist in Canada by taking intentional steps to promote diversity and inclusion across our portfolios and within our organization.

September 7, 2020 Investor Letter to Ontario Capital Markets Modernization Taskforce

We, along with institutional investor peers, wrote to the Ontario Capital Markets Modernization Taskforce to respond to their draft recommendations. In particular, we addressed:

  • Board and executive diversity disclosure and target-setting for the inclusion of women, as well as Black, Indigenous  and People of Colour (BIPOC)
  • Regulation of proxy advisory firms  
  • Annual advisory vote on executive compensation  
  • Shareholder proposal appeals process  
  • ESG disclosure for listed companies
July 28, 2020 Letter to U.S. Department of Labor Regarding ESG-Related Proposed Rule Change

We wrote to the U.S. Department of Labor to provide comments on the proposed rule entitled “Financial Factors in Selecting Plan Investments”. We recommended that the Department refrain from introducing a new rule and urged it allow the existing guidance to remain in effect. The proposed rule mischaracterizes ESG integration and fails to distinguish between ESG integration and economically targeted investing and could lead to confusion for ERISA fiduciaries and costs for plan savers.

June 15, 2020 Investor Letter to TMX Group Encouraging Facilitation of ESG Disclosure

Together with NEI Investments, Addenda wrote and sent a letter to TMX Group encouraging it to move forward with a platform to facilitate ESG disclosure by issuers. The letter encourages TMX Group to use the Sustainability Accounting Standards Board (SASB) and Task Force on Climate-related Financial Disclosures (TCFD) frameworks as its basis for disclosure. 26 other major Canadian institutional investors also signed the letter. An encouraging response was received from TMX at the end of June.

March 26, 2020 Investor Statement on Coronavirus Response

We signed the Investor Statement on Coronavirus Response which acknowledges the challenges companies are experiencing and recommends a long-term focus in workforce and governance decisions to manage the crisis. The statement encourages companies to prioritize paid leave, health and safety measures, preservation of employment, supplier/customer relationships, and financial prudence in managing the crisis.

Collaborative Investor Initiatives
 

Joining forces with other like-minded investors and stakeholders can significantly enhance our effectiveness in the promotion of sustainable financial markets. We have joined the investor initiatives below, as they allow us to:

  • Leverage our internal resources
  • Lend our credibility and gravitas to the good work of others
  • Share tools and pool resources
  • Gain access to enhanced sustainability related data and insight

Initiatives

Initiative Benefits

Initiatives

INCR Logo
  • Regular communications on US and global climate change and sustainability issues relevant to investors.
  • Access to stakeholder engagement meetings with large publicly traded companies. Opportunities to provide input to the working groups that advance members’ priorities like enhanced sustainability disclosure and improved public policy.
Canadian Bond Investors' Association / Association canadienne des investisseurs obligataires
  • Market information and expertise for fixed income investors.
  • A forum for discussion of key issues and ideas relevant to the Canadian fixed income market.
  • Access to educational opportunities on important fixed income issues.
  • Opportunities to provide input on position statements regarding developments in the Canadian fixed income market.
CDP Driving Sustainable Economies
  • Access to all corporate responses to CDP that detail information on the risks and opportunities that companies face and management discussion and analysis on strategies to address climate change, water-related issues, deforestation related issues and emissions-reduction performance.
PRI
  • Access to implementation tools and capacity building offered by the PRI Secretariat including listed equities and fixed income work streams.
  • Annual benchmarking of implementation of sustainable investing activities.
  • Access to webinars and seminars on important ESG issues provided by investment specialists.
PRI
  • Promotes the practice of sustainable investing in Canada.
  • Opportunities to interact with like-minded investors regarding important sustainable impact investing issues.
  • Support for initiatives like the Toronto Responsible Investing Working Group that promote and enhance sustainable investing practices in Canada.

Public Policy, Regulatory and Standards Submissions
 

We also try to improve the methods, structures and regulations that hinder the performance of the entities we invest in. As a result, we actively participate in the development of policies, regulations and standards that support sustainable financial markets and help our clients meet their objectives. Our submissions ultimately help the companies we invest in to strengthen their financial performance over the long term and remain competitive.

Consult our most recent submissions to regulators