ESG Newsletter

Established in 1997, the Government Pension Fund of Thailand ("GPF") is a mandatory defined-contribution pension fund managing retirement incomes for Thai government officials. As at December 31, 2019, they had USD 31.8 billion of assets under management. 

As a UN PRI signatory, GPF integrates environmental, social and governance issues into its investment research and decision-making. Additionally, the firm applies negative screening criteria on controversial weapons, gambling, sex and pornography. Moreover, as part of its commitment to be a "leader in ESG investing and initiatives in Thailand", GPF has initiated and led the development of the Negative List Guidelines of Thailand and made publicly available its GPF-ESG Weights and Scores: Asset Valuation Methodology© in collaboration with the World Bank Group. 

ESG Standard Criteria

GPF-ESG Weights and Scores: Asset Valuation Methodology© 

Established in 2011, the Commonwealth Superannuation Corporation (“CSC”) provides superannuation services to employees of the Australian Government and members of the Australian Defence Force. As at December 31, 2019, they had $US 36.5 billion of assets under management.

As a UN PRI signatory, CSC integrates environmental, social and governance (ESG) issues in its decision-making processes and active ownership practices. With regards to Climate Change, CSC measures and discloses the carbon footprint of its public market equities portfolio, in line with the Montreal Carbon Pledge, and conducts stress and scenario analysis. Additionally, they engage with investee companies on climate change issues with other investors as part of their involvement with the Investor Group on Climate Change (IGCC), the Carbon Disclosure Project (CDP) and the Taskforce for Climate-related Financial Disclosures (TCFD).

Annual Report 2018-2019

Stewardship Factsheet

Climate Investment Risk Factsheet

Established in 1990, the State Pension Fund of Finland (VER) is responsible for balancing the country’s pension expenditure. As at December 31, 2019, they had € 20.5 billion ($US 22.7 billion) of assets under management.

As part of its responsible investment approach, VER considers environmental, social and governance (ESG) factors in its investment decisions (including monitoring). Additionally, it applies norms-based and negative screening based on the UN Global Compact and companies with significant portions of revenues derived from weapons, alcohol, tobacco, gambling or adult entertainment. Moreover, as part of its commitment with the UN PRI, VER engages with external asset managers to promote the implementation of the UN's Principles for Responsible Investment.

Responsible Investment Policy

Investment Beliefs

Established in 1962, the Ontario Municipal Employees Retirement System (“OMERS”) is responsible for the pensions of over half a million employees from local agencies across Ontario. As at December 31, 2019, they had $CAD 109 billion of assets under management.

As part of its responsible investment approach, OMERS integrates specific environmental, social and governance (ESG) considerations when assessing potential new investments and monitoring investee companies. With regards to Climate Change, OMERS works to mitigate this issue by pricing climate-related financial risks. Further, they engage with portfolio companies to improve their reporting and transparency in order to improve their understanding of climate risks. Finally, OMERS supports the Task Force on Climate-Related Financial Disclosures (TCFD) and collaborates with peers through the Investor Leadership Network (ILN).

Sustainable Investing Policy

Statement of Investment Beliefs

Established in 2006, Future Fund is Australia’s sovereign wealth fund. It is responsible for investing for the benefit of future generations of Australians and managing six public asset funds. As at June 30, 2020, it had AUD205 billion of funds under management.

As part of its responsible investment approach, Future Fund integrates environmental, social and governance (ESG) issues when considering investment proposals, and selecting and monitoring investment managers. Additionally, the investor applies negative and norms-based screening on companies directly involved in manufacturing tobacco products, the 2008 Convention on Cluster Munitions and the 1997 Anti-Personnel Mines Convention. With regards to Climate Change, Future Fund considers carbon price, transition and physical risks in its investment processes. Further, it supports the Taskforce on Climate-related Financial Disclosures (TCFD) and engages with investee entities, either directly or in partnership with investment managers, to advocate for the adoption of TCFD recommendations.

ESG Policy

Exclusion List

2019-20 Annual Report 

Finland’s largest pension provider, Keva (previously named the “Local Government Pensions Institution”) administers the pensions of the local government, the State, the Evangelical Lutheran Church and Kela, the country’s Social Insurance Institution. As at December 31, 2019, Keva had € 56.2 billion ($US 62 billion) of assets under management.

As a UN PRI signatory, Keva integrates environmental, social and governance (ESG) criteria to support its traditional investment analysis. Additionally, they apply norms-based screening on the UN Global Compact and the ILO Labour Conventions. With regards to Active Ownership, Keva engages with peers through the CDP’s Non-Disclosure Project, Climate Action 100+ and an initiative to persuade G20 countries to mitigate Climate Change.

Responsible Investment Beliefs

Responsible Investment by Asset Class

Keva’s Responsibility KPIs 2019

Established in 2005, Établissement de retraite additionnelle de la fonction publique (“ERAFP”) is responsible for investing the French public service additional pension scheme. As at December 31, 2019, they had € 34.7 billion ($US 38.3 billion) of assets under management.

As a UN PRI signatory, ERAFP integrates environmental, social and governance (ESG) considerations in its investment process. For example, they have developed an internal rating based on their Socially Responsible Investment (SRI) Charter to favour best in class investments. With regards to Active Ownership, the investor participates in collaborative engagement initiatives on corruption, labour relations and working conditions. Finally, it is a member of the Institutional Investors Group on Climate Change (IIGCC) and the Extractive Industries Transparency Initiative (EITI).

SRI Charter

Guidelines for ERAFP’s Shareholder Engagement

Khazanah Nasional Berhad (“Khazanah”) is a sovereign wealth fund in Malaysia. As at December 31, 2019, Khazanah had RM 131.5 billion (USD 31.3 billion) of assets under management.

As a part of its responsible investment approach, Khazanah considers ESG risks and opportunities throughout its investment process. For example, the firm applies negative screening criteria on controversial weapons, gambling operations and the production of alcohol and tobacco. With regards to Active Ownership, Khazanah engages with management on ESG issues and exercises its shareholder rights to improve portfolio companies’ responsible business practices. Finally, Khazanah is a signatory to the UN PRI, the Malaysian Code for Institutional Investors and the Santiago Principles.

Investment Policy Statement

Responsible Investment Policy

Voting Policy

Established in 2008, Alberta Investment Management Corporation (“AIMCo”) is responsible for investing the pension, endowment and government funds of Alberta. As at December 31, 2019, they had $CAD 118.8 billion of assets under management.

As a UN PRI signatory, AIMCo integrates environmental, social and governance (ESG) issues into its investment decision-making processes and across the investment cycle. For example, AIMCo applies negative and norms-based screening criteria on controversial weapons, tobacco companies, the UN Global Compact and the OECD Guidelines for Multinational Enterprises. With regards to Climate Change, AimCo aligns with Canada’s commitment to reduce greenhouse gases by 30% by 2030. Additionally, they advocate for uniform and comparable climate-change disclosures through the Investor Leadership Network (ILN).

Responsible Investment Policy

Exclusion Guidelines

Strategic Response to Climate Change

Established in 1816, Caisse des Dépôts et des Consignations (“Caisse des Dépôts”) is a French public pension fund. As at December 31, 2019, the financial institution had 177 billions euros of assets under management.

As part of its responsible investment practices, Caisse des Dépôts integrates ESG considerations in their internally managed portfolios. Additionally, Caisse des Dépôts excludes controversial weapons, tobacco, thermal coal and regions with money laundering or terrorism financing from its investment universe. With regards to Climate Change, the financial institution adopted a group-wide strategy resting on 7 pillars to decarbonize its portfolios by 2050. As part of this commitment, the Caisse des Dépôts became a member of the Net-Zero Asset Owner Alliance.

Charter for Responsible Investment

Responsible Investment Report 2019 (Available in French only)