What sets us apart?
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. Unless otherwise noted, any references herein to ESG or sustainability reflect the general approach of Manulife Investment Management to integrating sustainability risk considerations into our investment decision making processes, which may not extend to any of the products offered or distributed by Manulife Investment Management where a third-party is involved in the management of the assets of such product.
See our 2021 Summary Scorecard
A demonstrated commitment to sustainability
As supported by our most recent PRI assessment1
Engagement interactions globally in 2021 - up from 1,122 in 2020 (across public markets)
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
1 Manulife Investment Management is a signatory to the Principles for Responsible Investment (PRI) and pays an annual fee. It is compulsory for signatories to report on their responsible investment activities annually.
2 As of September 2020 based on data from 2020 by the Principles for Responsible Investment (PRI) and was based on review of publicly disclosed responses to PRI’s Reporting Framework on Climate Change. Latest available data is shown. For more information on PRI’s Leaders’ Group 2020 award and methodology, please visit https://www.unpri.org/showcasing-leadership/leaders-group-2020/6524.article
We believe that ESG risks and opportunities contribute to an investment’s overall risk and return profile and harnessing the opportunities and managing those risks can benefit investors. As stewards of client capital, we have a responsibility to allocate 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 active management and sustainable investing go hand in hand. We actively engage with the companies in which we invest to assess their business models against sustainability risks and opportunities, with a focus on enhancing and improving their operating strength through the adoption of sustainability best practices.
- Incorporate material ESG considerations throughout the stages of our investment and lending lifecycles3
- Strengthen the potential risk/reward profile of our clients’ portfolios
- Exercise rights to encourage best practices in sustainability factor reporting and management (e.g., proxy voting)
- Engage with companies to mitigate ESG-related challenges and enhance ESG-related opportunities
- Protect and enhance the value of assets we own or operate
- Collaborate with organizations across the world to amplify our impact on global, systemic issues
- Expand the scope of our sustainability-focused activity while helping to build more resilient portfolios
3 Integration is based on Manulife IM’s Proprietary Integration Progression Levels (IPL), which measures investment teams progress in ESG integration. We look to incorporate material ESG considerations throughout the stages of our investment and asset ownership lifecycles, taking into account the characteristics of the asset class and investment process in question, as well as industry and geography, among other factors. Each investment team operates in different markets and with different nuances to its approach to investing. Accordingly, each team integrates ESG factors into its investment process in a manner that best aligns with its investment approach.
Third party partners
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
To us, strong stewardship is inseparable from good investing.
The UK Stewardship Code reflects global principles of good stewardship
Purpose, strategy, and culture
Disclose your purpose and how your strategy benefits clients | Develop a culture that supports purpose and strategy while also supporting best practices in stewardship
Governance, resources, and incentives
Staff resources and expertise to carry out stewardship function | Evaluate staff on stewardship execution | Create an oversight and policy structure to support and guide activities
Conflicts of interest
Train staff on conflicts of interest in stewardship | Maintain policies and processes designed to mitigate conflicts of interest when they may arise
Promoting well-functioning markets
Engage policymakers and standard setters to encourage sustainable and resilient markets | Identify and address emerging systemic risks
Review and assurance
Regularly monitor and analyze stewardship effectiveness and make changes accordingly | Invite independent oversight of stewardship processes, controls, and recordkeeping
Client and beneficiary needs
Develop mechanisms to capture client feedback and amend policies and procedures in response | Regularly report to clients on activities and outcomes achieved
Stewardship, investment, and ESG integration
Consider environmental, social, and corporate governance risks and opportunities through the investment process across portfolios | Tailor integration of sustainability factors and approach to stewardship by asset class
Monitoring managers and service providers
Work with vendors to ensure data and services meet client needs and constantly improve | Monitor services and data to ensure accurate and consistent high quality
Set clear expectations for engagements | Tailor approach to engagement by asset class | Work with stakeholders to achieve outcomes
Partner with peers to encourage specific change | Support initiatives to address systemic risks
Develop processes to alter tactics when stewardship isn’t effective in achieving outcomes | Consider collaboration, public statements, and other means of influencing change
Exercising rights and responsibilities
Strategically use rights associated with asset classes to influence best practices | Protect and enhance rights where possible to maximize influence
What is sustainable investing?
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.
A wide range of factors that can affect investment returns
How a company's operations affect the natural environment, and how the natural environment affects the company.
- Climate change and carbon emission
- Air and water pollution
- Energy efficiency
- Waste management
- Water scarcity
The relationship between a company and its employees, suppliers, and communities.
- Customer satisfaction
- Data protection and privacy
- Gender and diversity
- Community relations
- Employee engagement
- Human rights
- Labour standards
The structures or systems a company has put in place to ensure effective direction and control.
- Board composition
- Executive compensation
- Audit committee structure
- Bribery and corruption
- Political contributions
- Whistle-blower schemes
Sustainable investing: why now?
The rise of sustainable investing has been well documented and shows no sign of slowing down. As of 2020, over USD $35 trillion¹ was invested globally in sustainable and responsible strategies, while in Canada over 60% 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.
Sustainable investing by the numbers
Assets in Canada managed with at least one RI strategy 2018-20201
Of professionally managed assets in Canada is in responsible investments1
Of surveyed investors in Canada want their financial advisors to inform them of sustainable investing options2
1 Global Sustainable Investment Review 2020 – Global Sustainable Investment Alliance.
2 2020 RIA investor opinion survey.
April 29, 2022
November 25, 2021
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.