As a long-term and active investor, Power Corporation believes that value can be best achieved when environmental, social and governance (ESG) considerations are integrated into our investment process.
As part of our active ownership approach, we recognize that the effective management of ESG factors can have a positive impact on the Corporation’s profitability, long-term performance and ability to create value in a sustainable manner.
We view responsible investing as a means to mitigate potential risks and identify valuable investment opportunities. Responsible investing ensures we invest in quality companies that have sustainable franchises and attractive growth prospects, and that are managed in a responsible manner.
ESG Factors We Consider:
Ethics and Integrity
Robust Corporate Governance Framework and Practices
Anti-Corruption and Anti-Bribery
Biodiversity and Conservation
Health and Safety
Diversity and Inclusion
- Continued to engage with our group of companies and investments on environmental, social and governance (ESG) issues through our active ownership approach.
Highlights from our Group Companies
Many of our group companies are signatories to the Principles for Responsible Investment (PRI), including Great-West Lifeco subsidiaries GLC Asset Management Group, Putnam Investments and Irish Life Investment Managers, and IGM Financial subsidiaries Investors Group and Mackenzie Investments, integrating ESG factors into their investment processes. In 2016, Investors Group and Mackenzie Investments completed their first public PRI reporting process.
Sagard Europe, Sagard Holdings and Sagard China, Power Corporation’’s equity investment funds, as well as Pargesa, have formalized their commitment to incorporate ESG considerations into their investment analysis process through their respective CSR Statements.
IGM Financial analyzes the risk of each investment with a focus on identifying, monitoring and mitigating ESG risks and opportunities that are, or could become, material to long-term performance.
Irish Life Investment Managers has appointed a dedicated ESG resource to oversee its responsibilities with respect to responsible investing. They have also established an ESG Governance committee established with key members of their Executive Team, Fund Management, Operations and Client Servicing teams with the responsibility to ensure the adherence to their ESG policy and promotion of ESG considerations within the business. The company works with external providers of research and other ESG related services to analyze its fund companies to identify those with the highest exposure to sustainability risks, and analyze responses to determine whether ESG failings are being addressed.
ACTIVE OWNERSHIP/PROXY VOTING
IGM Financial’s approach to active management of its investments includes engagement with company management as well as proxy voting, which are important value-added practices within their investment processes. In addition, IGM generally adopts a policy of engagement over divesting a holding, believing that ownership enables them to contribute positively to the investee companies’ ESG progress, while divestiture may not allow meeting this goal.
Irish Life Investment Managers monitors company boards for their performance on ESG issues and independence and will generally support shareholder proposals regarding disclosures on social, environmental and labour/human rights issues.