We believe that organizations that manage Environmental, Social and Governance (ESG) factors effectively are more likely to create sustainable value over the long-term than those that do not. As we work to fulfill our mandate, we consider and integrate ESG risks and opportunities into our investment decisions.
At CPPIB we consider responsible investing simply as intelligent long-term investing. Over the exceptionally long investment-horizon over which we invest, ESG factors have the potential to be significant drivers - or barriers - to profitability and shareholder value. For these reasons we refer to what many call ‘Responsible Investing’ activities simply as Sustainable Investing.
Given our legislated investment-only mandate, we consider and integrate both ESG risks and opportunities into our investment analysis, rather than eliminating investments based on ESG factors alone. As an owner, we monitor ESG factors and actively engage with companies to promote improved management of ESG, ultimately leading to enhanced long-term outcomes in the companies and assets in which 18 million CPP contributors and beneficiaries have a stake.
As a founding signatory, CPPIB commits to and continues to be guided by the United Nations-supported Principles for Responsible Investment (PRI).
For more information on the policies, resources and strategies CPPIB uses to integrate consideration of ESG into our investment decisions, please see Our Approach to Sustainable Investing in our 2015 Report on Sustainable Investing.
