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

Disparity in policy portfolio risk profiles

A policy portfolio is a poor reflection of investor preferences, argued Peter Bernstein. This philosophical question has now been empirically tested by MIT’s Mark Kritzman, who shows the inter-temporal disparity of a policy portfolio’s risk profile. He suggests a simple framework for addressing this deficiency. Kritzman encourages investors to replace rigid policy portfolios with flexible investment policies.

Ventures on the risk spectrum

Hershel Harper received an early education in finance when he used to read Business Week in High School. The 43-year old now at the helm of the $27-billion South Carolina Retirement Systems, investing on behalf of South Carolina’s 350,000 public sector workers, says he knew back then he wanted to manage money: “I really am

Getting the commodities mix just right

While commodities are a controversial and problematic asset class to some investors, for others they are an ideal diversifier looking more attractive than ever. A mini-revival in commodity investing among US pension funds suggests the asset class may be enjoying a resurgence. The Los Angeles Fire and Police Pension System, Municipal Retirement System of Michigan

The end of beauty contest active management?

Designing and implementing concentrated, long-horizon investment mandates would support longer term thinking, align pension organisation’s goals with its stakeholders, and reduce transaction costs. This was one of the recommendations of a two-day workshop in Toronto last month, attended by a delegation of 80 pension fund executives from around the globe. Aimed at uncovering the meaning

Italian fund rides out crisis in style

The wrath of the European sovereign debt crisis may have left its mark on Italy in more ways than one, with both its financial and political scenes regularly sliding into crisis mode for the past year or two. However, the nation’s largest private pension investor, the €7.75-billion ($10.1-billion) Cometa fund, has firmly kept on track

Paul Marsh: live with low returns

The London Business School’s emeritus professor of finance Paul Marsh admits that you have to be slightly mad to embark on the kind of research detailed in the latest edition of Global Investment Returns Yearbook. This year Marsh and colleagues Elroy Dimson and Mike Staunton – Marsh describes the three of them, pictured below, as

Previous