ESG Newsletter

Bâtirente was founded in 1984 by the Confederation of National Syndicates in Québec, Canada to manage the pension of affiliated labor unions. The Non-corporate pension fund had US$ 499 million of assets under management as at December 31, 2018.

As a founding signatory of the United Nations' Principles for Responsible Investment, the Manager has been committed to investing sustainably. As such, 92% of its assets are managed by firms that integrate ESG criteria to their management process and that are PRI signatories. Furthermore, Bâtirente, in partnership with the "Regroupement pour la responsabilité sociale des entreprsies", founded Æquo in 2016 to manage its shareholder engagements and offer these services to other institutional investors in Québec. Finally, the asset owner collaborates with peers to influence company practices through collaborative engagements through PRI groups and Climate Action 100+, as well as through engagements with policymakers on issues like Supply Chain Modern Slavery. 

Annual Report – 2018

PRI Report – 2019

VicSuper was established in 1994 as a Victorian Public Sector Fund. In July 2000, the Superannuation Fund became open to all eligible Australians. Today, VicSuper manages over AUD 23 billion of assets on behalf of 250,000 members as at July 1, 2019.

VicSuper believes responsible investment leads to better investment outcomes, as such it became a signatory to the UN PRI in 2006. The Super Fund applies a negative screen on Tobacco companies for all of its assets, and offers particular screens depending on investor's preference. Furthermore, ESG issues are incorporated throughout the investment process – from the security selection to corporate engagements and voting. The VicSuper has formalized a Climate Change strategy, which seeks to incorporate Climate Change into their Investment Governance Framework, investing in line with a just transition towards a low carbon economy, as well as engaging companies to improve their management of climate-related risk.

Responsible Investment Policy

Engagement and Proxy Voting Policy

Climate Change Report – 2019

Annual Report – 2019

The Trust Waikato was established in 1988 by the Government of New Zealand to hold and manage the shares of Trust Bank Waikato – a trustee bank to increase community access to banking services. In 1996, Trust Waikato left banking and sold their shares. The proceeds from the sale were invested, using a portion of the profits to provide grants to community groups and projects in the Waikato region. As at March 31, 2018, the organization had US$ 269 million of assets under management.

The Trust believes it has a responsibility to consider the positive and negative externalities of its investments on the Environment and Society. As such, the Trust became a signatory to the UN PRI in February 2007. The Trust Waikato invests solely through external managers. For direct mandates, it has implemented a screening criteria on armaments, tobacco, gambling and liquor. When selecting and monitoring managers, the Trust researches their capacity to consider environmental, social and governance issues throughout the investment process.

Strategic Priorities

Statement of Responsible Investment

PRI Transparency Report 2019

Established in 1991, the Church Pension Fund is responsible for ensuring the pension payments to the employees of the Evangelical Lutheran Church of Finland. As at December 31st, 2018, the Church Pension Fund had US$ 1.6 billion of assets managed mostly by external managers.

The Church Pension Fund has been committed to responsible investing since its launch, becoming a signatory to the UN PRI in 2008. In 2014, the organization adopted Responsible Investment guidelines. Depending on the asset class, External Managers are required to apply norm-based screens to comply with the UN and OECD international norms, negative screens on companies involved in tobacco, alcohol, weapons, adult entertainment and fossil fuel, ESG integration, engagements where possible, and impact investing. Finally, in 2016, the asset owner implemented a Climate Change strategy formalizing its approach to managing the carbon footprint of its portfolios.

Guidelines for Responsible Investing

Climate Change Strategy

The Joseph Rowntree Charitable Trust is a Quaker trust founded in 1904 to support people who address the causes of conflict and injustice through grants applied for by applicants. In 2018, the Charitable Trust awarded 100 grants for a total of GBP 7.2 million in organizations dealing with Peace and Security, Power and Accountability, Rights and Justice, Sustainable Future and other causes.

To fund its grant-making activities in the long-term, the Joseph Rowntree Charitable Trust invests its endowment with external managers whose strategy matches the aim of the organization. As such, the Trust only invests in enterprises aligned to the organization's mission and encourages business to be ethical, socially responsible and to protect the environment. Consequently, the Trust has implemented an exclusion criteria on companies whose primary business is the extraction of fossil fuels, armament, gambling, tobacco and new generation nuclear power stations. The exclusion also applies to bonds from governments with high military expenditure or oppressive regimes. Additionally, the Joseph Rowntree Charitable Trust expects from all of its external managers to strive to achieve a good gender balance within the teams that are managing the funds in which they are invested.

Annual Report – 2018

Investment Strategy

Voting Strategy

Engagement Policy

Gender Balance – Statement of Expectations of Fund Managers

Ircantec is a French public sector supplementary pension scheme managing pensions for over 4.9 million pensioners and active public-sector employees. As at December 31st, 2018, Ircantec had US$ 12.5 billion of assets under management.

In December 2008, the pension scheme adopted an SRI approach based on the six principles for responsible investing developed by the UN PRI. In April 2016, Ircantec adopted a 4-year roadmap to further develop its approach to responsible investing by aligning its portfolio with a 2°C scenario by integrating climate issues, and financing the transition to a low carbon economy. Since 2017, the entirety of its assets are managed using ESG integration, Proxy Voting, Corporate Engagement and Negative Screening on companies manufacturing controversial weapons, tobacco, and coal.

SRI Charter (available in French only)

Shareholder and Institutional Engagement Policy (available in English)

Voting Policy (available in English)

Annual ESG and Climate Report 2018 (available in French only)

The Church of Sweden maintains assets at the national level as a buffer against future needs. Internal regulations of the Church Order state that asset management must take a long-term perspective. As such, the entirety of its assets under management (US$ 930 million as at December 31, 2018) are invested using sustainability criteria.

The Church of Sweden only uses external managers that have proven to incorporate sustainability into their investment process. Every year, the institutional investor hires consultants to review all of its holdings and ensure external managers comply with the Church's responsible investment policy. This document states that all portfolio companies must comply with the International Labor Organization Conventions, the OECD Guidelines for Multi-National Enterprises, the UN Universal Declaration of Human Rights, the UN Global Compact's ten principles and the UN Guiding Principles for Business and Human Rights. Furthermore, as an active owner, the Church of Sweden seeks to influence public opinion, engage with portfolio companies, their peers and policymakers through industry groups like the UN PRI, the Institutional Investor Group on Climate Change and others.

Responsible Investment Policy

Report on Sustainable Investments – 2018

Folketrygdfondet is an investment manager whose task is to manage the Government Pension Fund Norway (GPFN) on behalf of the Ministry of Finance. Contrary to the Government Pension Fund Global, also known as the "oil fund", the GPFN's capital base originates from surpluses in the national insurance scheme and is invested in Norway and the other Nordic countries. As at June 30th 2019, Folketrygdfondet had US$ 28.6 billion of assets under management.

As an investor with a long-term perspective, the Manager recognizes the links between sustainable development and financial returns. As such, it considers ESG risks in both its Equities and Fixed Income portfolio. Additionally, as part of its Equity strategy, Folketrygdfondet exercises its ownership rights and engages regularly with companies to enhance their value, either individually or as part of collaborative initiatives like Climate Action 100+.

Ownership Report 2018

Mistra, the Swedish foundation for strategic environmental research, seeks to promote the development of research for a good living environment and sustainable development. Every year, the foundation invests around US$ 20 million in research initiatives from both the public and the private sector. To fund its grants, MISTRA manages an endowment of about US$ 335 million as at June 30th, 2019.

In its asset management activities, Mistra has the ambition of being a model for other asset owners wishing to further sustainable development. As such, the research foundation only invests for the long term in securities whose issuers' operations relate to the UN SDGs, operate in accordance to the Paris Agreement, do not violate international conventions signed by Sweden, and seek to boost their positive and minimize their negative impacts. All of their assets are managed by external managers which are annually assessed. Furthermore,  Mistra has joined investor initiatives such as the Montreal Pledge, the UN PRI, and Climate Action 100+ among others.

Investment Policy

Norm and Sector-based Screening in 2018

Carbon Footprint in 2018

Ethos, the Swiss Foundation for Sustainable Development, was founded in 1997 to promote Socially Responsible Investments as well as a stable and prosperous socio-economic environments.  It is composed of more than 200 Swiss pension funds. To achieve its objectives, the Foundation created Ethos Services to offer asset management and advisory services. Ethos had US$ 1.43 billion of assets under management as at December 31st, 2018.

Ethos' approach to socially responsible investments applies a sector-based exclusion criteria (weapons, nuclear energy, tobacco, gambling, adult entertainment, coal and GMO agrochemical activities) and exclusions based on major controversies related to human rights violations or serious harm to the environment. Furthermore, Ethos prioritizes companies and debt issuers with above average ESG assessments and lower carbon intensity. Finally, the organization systematically exercises its shareholding voting rights and seeks to engage in dialogues with companies, notably through collaborative initiatives such as Climate Action 100+.

Ethos Charter

Socially Responsible Investment Principles

Exclusion Criteria

Proxy Voting Guidelines

Engagement Policy