What does stewardship mean to us?
Enjoy some highlights of our stewardship work over the past year and discover what it means to our clients, employees, and the communities we serve.
Watch the videoOur 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.
As supported by our most recent PRI assessment1
Engagement interactions globally in 2021 - up from 1,122 in 2020 (across public markets)
Named to PRI Leaders’ Group 2020 for excellence in climate reporting2
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
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.
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.
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
Enjoy some highlights of our stewardship work over the past year and discover what it means to our clients, employees, and the communities we serve.
Watch the videoTo us, strong stewardship is inseparable from good investing.
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
Engagement
Set clear expectations for engagements | Tailor approach to engagement by asset class | Work with stakeholders to achieve outcomes
Collaboration
Partner with peers to encourage specific change | Support initiatives to address systemic risks
Escalation
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
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 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.
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
April 4, 2022
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