As one of Canada’s largest asset managers, Scotia Global Asset Management Canada places the highest priority on the stewardship of our clients’ assets. We believe ESG considerations are a key component in delivering long-term value to clients.
Our ESG approach
As active managers, we consider ESG factors in our approach, engage in deep proprietary research and employ a thorough approach to risks and opportunities with dedicated support from our ESG Investment Committee. Our products span traditional mandates with risk and return investment objectives where ESG factors are not a primary focus, but are considered when deemed material, through the lens of how they could impact risk and return, to ESG-focused mandates that incorporate specific ESG considerations into the investment objectives alongside risk and reward.
Our investment teams use proprietary fundamental research along with various external data sources, including third-party ESG research, to formulate an independent internal assessment of ESG-related factors.
Engagement with management
Meetings and direct engagement between our investment professionals and the entities in which they invest provides the opportunity to communicate views and concerns to management, while also fostering a deeper understanding of specific companies and issues. As active managers, we analyze and push for more regular disclosure from issuers.
Proxy voting is an important part of our best practices when managing our client's assets, and an essential component of the investment process. Our formal proxy voting guidelines ensure that all proxies, including those concerning ESG-related matters, are considered in a manner consistent with the best interests of our clients.
ESG Investment Committee
1832 Asset Management L.P. has a dedicated ESG Investment Committee that provides oversight and guidance on all our ESG initiatives.
Diversity, Equity and Inclusion
Scotia Global Asset Management is committed to bring about a more diverse and inclusive investment landscape and community in Canada now – and in the future. As a leading investment firm in Canada, Scotia Global Asset Management recognizes that it has a responsibility to take a leadership role in the advancement of Diversity, Equity, and Inclusion (DEI). Inequities exist globally with respect to race, gender, sexual orientation, age, disability, religion, and socioeconomic status. To address this, we are committed to furthering DEI – in our corporate culture, in the communities in which we operate, and in the companies in which we invest.
Our DEI efforts include:
- Expanding our efforts internally to address barriers to entry by adopting hiring practices that create and systematize a more diverse pool of candidates;
- Improving DEI practices internally by collecting and monitoring DEI data, heightening awareness across the organization, and providing ongoing education opportunities;
- Expanding our reach to build and sustain a robust pool of diverse and inclusive professional talent that engages employees throughout their career journey; and
- Reviewing the diversity disclosures across the companies in which we invest, as we recognize a connection between diversity and long-term company financial performance over time.
Why ESG considerations matter
Companies with robust ESG practices can have lower risks, reduced costs and stronger price performance versus companies with weak ESG-related practices.
A better understanding of risk. Considering ESG factors into the investment process provides a deeper understanding of an investment’s risk profile and its potential value over the long term.
Poor ESG performance can be costly. Potential ESG-related controversies can erode shareholder value across a wide range of sectors and industries.
ESG factors: Key considerations
What efforts has a company undertaken to reduce their carbon footprint or environmental impact? Are they exposed to fines or penalties over issues, such as pollution or excessive waste?
- Greenhouse gas emissions
- Renewable power
How well does a company treat its employees? Are there concerns about human rights violations, lack of diversity or health and safety issues? How well do they safeguard their customers’ data?
- Diversity, equity and inclusion
- Labour standards
- Cyber security
Is the company’s board of directors independent and responsive to shareholder concerns? Is executive compensation aligned with shareholder interests?
- Board independence
- Shareholder rights
- Bribery and corruption
Our commitment to ESG
Signatory to the United Nations-supported Principles for Responsible Investment and regularly submits transparency reports to the agency.
Proud founding participant of Climate Engagement Canada, a finance-led initiative that drives dialogue between the financial community and corporate issuers to promote a just transition to a net zero economy.
Proud member of the Canadian Coalition for Good Governance (CCGG) and serves on the group’s Environmental and Social Committee.
Proud member of the Responsible Investment Association's leadership council, Canada’s membership association for responsible investing.
Proud member of CDP, a not-for-profit that runs a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.