CPP Investment Board, Caisse de depot et placement du Quebec, BC Investment Management Corp., Batirente Inc. and Inhance Investment Management are the first Canadian asset managers to sign on to the United Nations Principles for Responsible Investment.

The Principles, which are voluntary, identify a range of steps investors can take to integrate environmental, social and governance (ESG) factors in several areas, including investment decision-making, active ownership, transparency, collaboration, and gaining wider support from the financial industry. There are six overarching principles, supported by a set of 35 possible actions that institutional investors can pursue.

The Principles are backed by the United Nations, and were launched by UN Secretary-General Kofi Annan at the New York Stock Exchange April 27. As of mid-May, 69 signatories, representing  $5 trillion in assets, had signed on to the Principles.

In addition to the five Canadian asset managers, Mercer Investment Consulting, which helped to draft the Principles, and Innovest Strategic Value Advisors (two consulting companies with large Canadian operations) also had signed on to the principles.

“For the entire financial community, socially responsible investment goes hand in hand with the pursuit of sustainable economic development,” said Henri-Paul Rousseau, President of the Caisse de depot et placement du Quebec. “By bringing together major institutions that endorse these principles, the UN is increasing the overall scope of what these institutions can do individually.”

David Denison: CEO of the Canada Pension Plan Investment Board, said: “The publication of a common set of principles for responsible investing is an important step forward. We hope more investors embrace these and help develop the research, tools and methodologies needed to incorporate ESG factors into the investment process.”

“These are issues which (British Columbia Investment Management Corp.) and other investment professionals believe can affect the long-term performance of investment portfolios,” said Doug Pearce, CEO of British Columbia Investment Management Corp. “The framework provided by the principles is firmly grounded within the bounds of fiduciary duty.”

In a news release announcing participation in the Principles, Batirente Inc. said adherence to the Principles will improve financial practices, and will impact on the security and return of Batirente’s investments.

In a release, Inhance Investment Management announced that it was the first Canadian mutual fund company to sign on to the UN Principles. “The adoption of the UN Principles by mainstream investment managers and firms will benefit all shareowners by encouraging companies to disclose how they are treating relevant non-traditional risks,” said Dermot Foley, Vice President, Strategic Risk for Inhance.

For more information: http://www.unpri.org/.

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