ESG Newsletter

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)

Established in 1974, Temasek Holdings is the Sovereign Wealth Fund of Singapore. Temasek had S$ 306 billion (US$ 214 billion) of assets under management, as at March 31, 2020.

As a generational investor, Temasek integrates ESG considerations throughout its investment process when assessing thematic, sector, and company-level information. Additionally, with regards to Climate Change strategy, Temasek conducts scenario analysis on portfolio companies to better understand their exposure to climate risk in line with the Taskforce for Climate-related Financial Disclosure. As part of this process, the Sovereign Wealth Fund will engage with companies to achieve net zero carbon emissions by 2050. Furthermore, Temasek is active in industry-wide initiatives such as the United Nations Development Programme’s Steering Group of SDG Impact and the Sustainability Accounting Standards Board (SASB).

Annual Review 2020

Sustainability Journey

PKA is responsible for managing the pensions of Denmark’s healthcare professionals, nurses and social workers. With more than 325,000 members, the Danish public pension fund had 330 billion Danish kroner (USD49.5 billion) in assets under management as at December 31 2019.

As a responsible investor, PKA has implemented screening criteria around tobacco, weapons and coal, as well as the UN Global Compact’s principles. With regards to Climate Change, PKA allocated 10% of its assets to climate solutions. Additionally, as part of its active ownership strategy, PKA pushes companies from the coal, oil and gas sector to incorporate the Paris Agreement’s objectives into their business strategy. As such, the organization joined Climate Action 100+ to engage with their peers and increase their influence on portfolio companies.

Active Ownership Policy (available in Danish only) 

Statement of Active Ownership 2019 (available in Danish only) 

UN PRI Transparency Report 2020  

The Bureau of Labor Funds is responsible for various labor funds in Taiwan, including the Labor Pension Fund, the Labor Retirement Fund and others. With around USD156 billion of total assets under management as of May 2020, the Bureau of Labor Funds is the largest public pension fund in Taiwan.

As Taiwanese society contributes to the Bureau of Labor Funds, they have adopted socially responsible investment strategies to not only improve labor rights and benefits, but to also push corporates to perform social responsibilities, benefiting the entire society. 

CSR Report 2014-2015