Our approach to sustainability combines a macro perspective on ESG risks, opportunities, and imperatives with the depth of local market expertise. As both an asset manager and owner/operator, we have a unique perspective on navigating sustainability's systemic challenges and opportunities. These facets of our identity help us develop and synthesize innovative global frameworks for sustainability analysis and asset management that work in the local context.
For strategy and governance
For equity integration
For SSA fixed income (sovereign, supranational, and agency debt)
Engagement interactions globally in 2019 – up from 276 in 2018 (across public markets)
Named to PRI Leaders’ Group 2020 for excellence in climate reporting
In 2020, we published our first climate-related financial disclosure report (TCFD)
Invited by the Japanese government to join the TCFD consortium—the world’s first-ever summit on the implementation of the TCFD
Founding member of Climate Action 100+
Joined the SASB’s Investor Advisory Group
Joined the 30% Club Canadian Investor Group
Joined the Responsible Investment Association
Joined the World Business Council for Sustainable Development (WBCSD)
Winner of 2019 SDG Canadian leadership awards from the Global Compact Canadian Network
Public markets ESG team won “Best ESG Team: North America” award from Capital Finance International — 2019 and 2020
Sustainability as standard in every strategy¹
We believe that active management and sustainable investing go hand in hand. As active managers, we’re able to research and strategically allocate capital to the companies and issuers that we believe are most resilient to ESG risks and/or best positioned to take advantage of ESG opportunities.
We believe that ESG risks contribute to an investment’s overall risk and return profile and that managing those risks and harnessing the opportunities can lead to positive returns for investors over time.
We actively engage with the companies in which we invest to assess their resiliency to sustainability risks and their ability to adapt to future opportunities.
Through the due diligence process, informing decisions about which companies to buy, hold or sell.
Through ongoing risk monitoring at the company and portfolio levels.
Through active ownership, informing engagement and proxy voting strategies.
We carry out extensive research and due diligence on the sustainability practices of third party managers to be able to offer you a range of investing solutions from leading investment managers
Engaging with the companies in which we invest and exercising voting rights on behalf of our clients are at the center of our approach to sustainable investing.
We engage with publicly traded companies worldwide, and we often engage with a company on more than one ESG issue. Through this practice, we learn about how our investee companies are managing sustainability risks—and we encourage them to address issues we've identified that may affect their long-term value creation potential.
In 2019 we engaged in a broad range of environmental, social, and governance issues.
Top 10 engagement topics² |
E, S, G |
Number of engagements |
|---|---|---|
Board structure and practices |
G |
248 |
Shareholder rights |
G |
196 |
Market opportunity: environmental business/sustainable finance |
E |
115 |
Market opportunities |
G |
92 |
Customer preference and shift |
S |
86 |
Other governance topics |
G |
79 |
Other social topics |
S |
62 |
Climate change vulnerability |
E |
55 |
Other environmental topics |
E |
47 |
Greenhouse gasses |
E |
41 |
Alongside engagement, we see proxy voting as a key tool to influence companies to adopt sustainable business practices that promote stable, long-term growth and reduce sustainability risks over time. In addition, we frequently support shareholder proposals that address material ESG risks pertaining to a given issuer.
In 2019, our support for shareholder proposals was particularly evident in socially focused proposals touching on human rights, lobbying payments and policy, and employment diversity.
1 Investments managed by Manulife Investment Management
2 Manulife Investment Management, as of December 31, 2019. Table reflects the largest single-factor topics. ESG due diligence and disclosure, which crosses all factor categories, was the most common engagement topic, numbering 275 engagements.
Sustainable Investing refers to the incorporation of environmental, social and governance (ESG) factors into the selection and management of investments. By systematically integrating these factors across every stage of the investment process, sustainable investing seeks to improve a portfolio’s risk-adjusted return potential.
How a company's operations affect the natural environment, and how the natural environment affects the company.
The relationship between a company and its employees, suppliers, and communities.
The structures or systems a company has put in place to ensure effective direction and control.
The rise of sustainable investing has been well documented and shows no sign of slowing down. As of 2018, over $30 trillion¹ was invested globally in sustainable and responsible strategies, while in Canada over half of professionally invested money was allocated to these types of strategies. While it began as a specialist approach, sustainable investing is now a powerful and enduring megatrend that’s transforming how people and institutions are investing around the globe.
Assets in Canada managed with at least one RI strategy 2016-20182
Of professionally managed assets in Canada is in responsible investments2
Of surveyed investors in Canada want their financial advisors to inform them of sustainable investing options3
1 2018 Global Sustainable Investment Review – Global Sustainable Investment Alliance. 22019 RIA investor opinion survey. 2 Global sustainable investment alliance, 2018 global sustainable investment review. 3 2019 RIA investor opinion survey.
February 11, 2021
February 1, 2021
September 22, 2020
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund facts as well as the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
