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 as a way to identify both risks and opportunities to enhance long-term returns for investors.
Sagard Europe, Sagard Holdings and Sagard China, Power Corporation’s equity investment funds, as well as Pargesa and Groupe Bruxelles Lambert (GBL), 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.
ESG aspects are embedded at all stages of GBL’s investment process, including the assessment of investment opportunities and the due diligence phase, and of the monitoring carried out on participations of the portfolios.
At Irish Life Investment Managers (ILIM), a dedicated ESG resource oversees the company’s responsibilities with respect to responsible investing. They have also established an ESG Governance committee comprising key members of the Executive Team, Fund Management, Operations and Client Servicing teams with the responsibility to ensure the adherence to its ESG policy and promotion of ESG considerations within the business. The company works with external research providers and other ESG-related services to analyze its fund companies to identify those with the highest exposure to sustainability risks and also to support its engagement activities, helping ILIM engage in a meaningful way with these companies. Since the inception of its engagement program in 2015, ILIM has contacted 82 companies across six themes including ESG risk management, climate change and human rights, with the objective to work with them to improve their overall performance in these areas.
In 2017, Putnam Investments established a sustainable investing team, as the firm moved to expand its ESG investment capabilities to further serve the institutional and retail marketplaces. Using a highly integrated approach across all of its investment platforms, the firm is committed to identifying and pursuing opportunities in the burgeoning ESG realm through the development and management of new investment strategies, driven by rigorous analysis of current and emerging market trends.
Building on its CSR Statement, Sagard Europe further formalized its ESG commitment and procedures, taking into account ESG factors throughout the entire investment cycle, from the acquisition phase through portfolio management, to divestment, raising its employees’ awareness of ESG issues in parallel. For instance, for majority investments, Sagard Europe works with external service providers to perform an ESG due diligence, systematically reviews ESG assessments at Investment Committee meetings and conduct an annual review of ESG action plan.
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. The company votes proxies in the best interests of its funds and engages in an active two-way dialogue to positively influence company approaches on ESG factors that are material and relevant for each specific circumstance. 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. In 2017, ILIM actively voted in over 4,400 meetings, with over 1,600 individual companies in 61 countries.