Scenario analysis – Benefits Canada.com

RESTing the case on climate change

mschmit — Wed, 02 Dec 2020 04:24:39 +0000

A lawsuit settlement on the other side of the world is reverberating around the globe as it increases the environmental, social and governance standards for a US$41 billion pension fund and potentially encourages similar legal action elsewhere. The lawsuit, filed against the Australian Retail Employees Superannuation Trust, known as REST, by one of its members, […]

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The slow burn of climate change in heat of pandemic

mschmit — Wed, 24 Jun 2020 03:41:10 +0000

Meeting a deadline in the midst of a pandemic seems like a good test of corporate resiliency and, according to a recent survey of Canadian Principles for Responsible Investment signatories that I conducted on behalf of my consulting firm Real Alts, the majority of respondents likely passed. The survey found that almost 80 per cent […]

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PRI reporting deadline: A race to the finish line in 2020

mschmit — Thu, 27 Feb 2020 03:54:48 +0000

There is nothing like a deadline to focus the mind. Asset owners and managers who are signatories of the United Nations-supported Principles for Responsible Investments have just five weeks left to complete their annual report on their environmental, social and governance metrics, with the filing deadline being March 31. The challenge in the 2020 report […]

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ESG tongue-twisters to become everyday language in 2020

mschmit — Thu, 16 Jan 2020 03:08:34 +0000

Have you ever noticed that the language of sustainable investment is rife with acronyms? In my opinion, 2020 will see some of the worst tongue-twisters become popularized parlance. Yet an increase in investors learning these bad alphabet jumbles will be a good thing as it will reflect increasing consensus on what’s important in the rapidly […]

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Fixing the mismatch between risk management and asset allocation time horizons

mschmit — Mon, 25 Nov 2019 04:53:22 +0000

Many pension plans use risk systems to test how different scenarios would affect their portfolios. Traditionally, risk models use thousands of scenarios. The likelihood that these scenarios will occur is weighted equally and generally reflects short-term asset characteristics. On the other hand, pension plans also use asset-liability models for long-term portfolio construction. This could result […]

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Canadian DB pensions share experiences implementing TCFD recommendations

mschmit — Mon, 30 Sep 2019 04:21:30 +0000

A group of institutional investors, including numerous large Canadian defined benefit pension plans, has released a handbook outlining their experiences implementing the recommendations from the task force on climate-related financial disclosures. The Canadian plans include the Alberta Investment Management Corp., the Caisse de dépôt et placement du Québec, the Canada Pension Plan Investment Board, the […]

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