CLEANING UP
An ESG approach can help plan sponsors invest for the long term
A decade ago, it was easy enough for institutional investors to ignore socially responsible investing — after all, fiduciary duty is about the pursuit of the best sources of return, not changing the world. Today, however, that paradigm is shifting. Environmental, social and governance (ESG) factors are a growing part of the investment decision-making process, as long-term asset owners, like pension funds, realize the dramatic impact governance failures and climate change can have — not only on individual companies, but on the global economy as a whole.
The growing importance of ESG factors has even been enshrined in new Ontario regulations — on
January 1, pension plans in Ontario will be required to address ESG in all of their statements of investment policies and procedures.
In this expert roundtable, we bring together members of Canada’s pension investment community to discuss the evolution of ESG, how plan sponsors in Canada and around the world are addressing it, and the opportunities and risks they face today on the ESG front.
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