Ontario Teachers’ fund joins PRI and outlines ESG views via video

The Ontario Teachers’ Pension Plan (OTPP) has joined 15 other Canadian asset owners and become a recent signatory to the United Nations-backed Principles for Responsible Investment Initiative (PRI).

OTPP, which is regarded as a leader in corporate governance issues, is a relative latecomer to the PRI, with the organisation already attracting 916 signatories world wide since it was launched in 2006 . President and chief executive officer Jim Leech (pictured) says that many of its investment practices are already aligned with the principles.

“Our investing practices were already aligned with most of the principles and PRI reflects the increasing importance of responsible investing to our members and potential partners,” Leech says.

“As a natural extension to our long record of leadership on matters of corporate governance, PRI is consistent with our core values of championing accountability and risk consciousness.”

With $107.5 billion in assets as of December 31, 2010, Teachers’ is the largest single-profession pension plan in Canada. It invests the pension fund’s assets and administers the pensions of 295,000 active and retired teachers in Ontario.

Sponsored Content

OTPP says it attempts to integrate environmental, social and corporate governance (ESG) factors into its risk management processes and is also a signatory to the Carbon Disclosure Project and the Water Disclosure Initiative.

The fund’s largest timberland investment manager also participates in the Sustainable Forests Forestry Initiative.

Its corporate governance work has been its most significant contribution to the development of ESG policies and practices among institutional investors.

This has included being a founding member of the Canadian Coalition for Good Governance.

The fund has a policy of voting at every opportunity it has as a shareholder and publishes an annual letter to the companies it invests in outlining its corporate governance views.

Along with these initiatives, OTPP publishes all its voting records on its website.

The fund also uses research providers Sustainalytics and MSCI ESG research to analyse environmental, social and corporate governance risks for companies in major stock indices.

Leech says that the fund will look to share its own ESG experience with other funds involved in the PRI.

“We are pleased to endorse PRI and look forward to sharing best practices and collaborating with like-minded investors from around the world as we analyse the financial implications of ESG risks and opportunities,” he says.

Approximately 900 investment institutions and service providers, with assets under management of approximately US$25 trillion, have become signatories.

The fund has recently outlined its responsible investing principles and policies through publishing a video, Responsible Investing – An Evolving Story, on its website.

Leave a Comment

Sort content by

World Economic forum identifies global risks

The World Economic Forum’s 2014 Global Risk report, has implications for investors.   The report, released ahead of next week’s meeting in Davos, highlights how global risks are not only interconnected by also have systemic impacts. The risks were broken down into economic, environmental, geo-political and social. The seven economic risks were: fiscal crises in

Focusing on the long term: asset owners need to step up

Asset owners must step up and “join the fight” to end the focus on short-term results by companies and investment firms. Four practical steps to make this happen are outlined by president and chief executive of the Canada Pension Plan Investment Board, Mark Wiseman, and global managing director of McKinsey, Dominic Barton, in the most recent

Free advice: Mercer’s 10 tips for DC plans in 2014

As the growth of defined contribution plans continues to outpace the defined benefit sector, the focus for those running defined contribution plan sponsors should be on meeting objectives, good governance and investment risk management. Consulting firm, Mercer, has some advice for the DC sector. According to Mercer establishing best practices across all areas of defined

Cardano and Monty Python collaborate on the crisis

Chief executive of Cardano UK, Kerrin Rosenberg, is a Monty Python fan. In the same eccentric vein as the famous satirists he has a healthy disrespect for the status quo and a quirky view of how pension assets should be managed, which for most funds includes a radical change in asset allocation. In 2010 Cardano,

New era for Barra risk modelling

MSCI’s risk management tool, BarraOne incorporated 31 private real estate models and a macro-factor asset allocation model in 2013 and this year will add global private equity analysis giving it coverage across all asset classes. BarraOne, which is widely used among investors for risk analysis and management, started as an equities analysis tool, but now

A new model of liquidity

The risk-adjusted benefit of being able to rebalance a portfolio is worth tens of basis points, according to new research that assigns risk and return measures to liquidity so it can be analysed alongside other portfolio decisions. The award-winning research is now being used by large sovereign wealth funds, to determine the value they should

Previous