Investing in the Energy Transition
Articles
by David Caron on October 11, 2023
Sustainability
A firm-wide investment philosophy that creates long-term value both for investors and society.
Why do we treat ESG factors as a priority?
Because we believe that sustainable investing isn't just the right thing to do – it's the best path to financial success.
Watch our video to learn more about our beliefs.
Our sustainable investing pillars
Risk-based approach
We consider material ESG risks across our investments to deliver the best risk-adjusted returns to our clients.
Theme-based approach
We focus on strategic sustainability themes to guide our investment strategies and stewardship plan.
Our sustainable investing approach is guided by three principles
ESG integration
We incorporate ESG issues into our investment analysis and decision-making processes.
Stewardship
We are active investors. We encourage improvement of ESG practices by engaging with companies and voting at shareholder assemblies.
Advocacy
We work with other investors whenever such collaboration is the most effective way to achieve our objectives.
How we integrate ESG factors
Seeking to provide superior risk-adjusted returns by combining both financial and ESG factors
Value and risks related to sustainability are created in the real world, but they also influence the returns on financial assets. Therefore, it is our ambition to incorporate material ESG factors in our fundamental risk framework.
While our sustainability approach is applied across all our portfolios, we use different types of ESG strategies in order to meet the needs and primary considerations of investors.
Read our Sustainable Investment Policy| Active stewardship Engagement with issuers and proxy voting. | ESG Exclusions Divestment from industries that impact our ecosystem. | ESG integration Integration of material E, S and G issues with the objective of optimizing returns and mitigating ESG risks. | ESG themes Exposure to specific ESG themes with a focus on best-in-class stock selection. | |
|---|---|---|---|---|
| iAGAM Responsible Fossil Fuel Free Bonds | ||||
| iAGAM Sustainable Canadian Equities | ||||
| iAGAM Sustainable Balanced |
* | |||
| Other iAGAM Strategies |
* Exclusions apply to the fixed income portion of the portfolio.
Focussing on strategic sustainability themes to promote strong stewardship
Active ownership is an effective mechanism for mitigating risk, increasing returns, and raising investment value. Our portfolio managers and analysts engage with investee companies on material ESG-related issues.
Strong stewardship provides us with a better understanding of our investee entities and their governance structures and approach to ESG issues, which drives more well-informed investment decisions. Where engagement does not prove to be successful, we escalate the matter, potentially in conjunction with other investors.
Our stewardship priorities
Climate change
We expect companies to ensure compliance with environmental regulations and aim to reduce the environmental footprint of our investments with respect to pollution, climate change, energy, water, and waste management.
Biodiversity loss
The rapid degradation of ecosystems is a threat to the stability and prosperity of our economies. The transition to carbon neutrality must also address the biodiversity crisis.
Inclusive capitalism
We support initiatives that promote diverse and inclusive representations at all levels of our economic system as a means towards effective decision-making, innovation, sustainable wealth creation, and shared prosperity.
Exercising shareholder voting rights on behalf of our clients
Proxy Voting is a key component of our active ownership approach with publicly listed investee entities. We believe that exercising our voting rights is one of the most effective mechanisms for guiding issuers toward sustainable practices. It is our duty to vote on the proposals submitted at our investee companies’ shareholder meetings, in accordance with our responsible investment principles.
Building trust and improving through transparency
Our mission is supported by a commitment to the values of transparency and accountability. To that end, we publicly report our commitments and progress regarding sustainable investing on an annual basis. By sharing transparent and accurate information, we continuously improve our approach and support our long-term sustainable investment ambition.
Read our latest Sustainability Report
iAGAM is a proud partner and signatory of various initiatives
We believe that collaboration is a powerful way to deliver positive outcomes. iAGAM is a signatory and member of several global sustainability initiatives.
Strong ESG leadership
“I take great pride in collaborating with a formidable team of managers and investment professionals to achieve our shared ambitions in terms of responsible investment. With a long-term horizon, these ambitions support the generation of attractive returns and sound risk management, while advancing the important cause of a greener economy and its impact on society.”
- Alain Bergeron, President and Chief Investment Officer, iA Global Asset Management
Read Alain’s bio