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 videoA commitment to sustainability
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.
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Top scores from the Principles
for Responsible Investment (PRI)1For strategy and governance
For equity integration
For SSA fixed income (sovereign, supranational, and agency debt)
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Stewardship
Engagement interactions globally in 2020 – up from 940 in 2019 (across public markets)
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Climate action
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
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Global collaboration
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)
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Award winning team
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
Our PRI scores
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Manulife Investment Management’s scores in the Principles for Responsible Investment (PRI) annual responsible investment assessment report for 2019
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A+
- Strategy and governance
- Equity integration
- SSA fixed-income integration (sovereign, supranational, and agency debt)
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A
- Real estate
- Listed equity active ownership
- Fixed-income integration (corporate financial, corporate nonfinancial, and securitized)
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B
- Infrastructure
- Private equity (in our first filing for both modules)
Download our latest PRI assessment report for details on our:
- Peer-relative SRI scores
- Year-over-year performance across SRI categories
Please visit the PRI website to learn more about the
assessment methodology or to see our transparency report
Important disclosures
1 PRI has notified respondents that the 2021 assessment report will be delayed.
2 As of September 18, 2020. PRI has announced that the 2021 PRI Leaders’ Group on Stewardship has been postponed.
Our approach
Sustainability as standard in every strategy¹
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.
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ESG integration
We integrate ESG analysis into the investment process across asset classes
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Stewardship
We have strong stewardship practices to both help protect the health of individual investments and to foster the strength and sustainability of the systems on which those investments depend
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Collaboration
We work with regional and international organizations to address the sustainability issues our world faces
Our commitment to sustainability
Download our brochure to learn more about Manulife Investment Management’s commitment to sustainability.
Download now
Thematic investment
Our approach to sustainability extends to investments that target specific sustainability themes and objectives such as climate change.
Learn more about Manulife Climate Action Fund
Important disclosures
1 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. For illustrative purposes.
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
Stewardship
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
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
Download our stewardship report to learn more about our culture of stewardship and how we’re encouraging action to mitigate and adapt to systemic risks through our global engagement efforts.
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
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Environmental
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
- Biodiversity
- Energy efficiency
- Deforestation
- Waste management
- Water scarcity
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Social
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
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Governance
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
- Lobbyings
- 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
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Up 48%
Assets in Canada managed with at least one RI strategy 2018-20201
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62%
Of professionally managed assets in Canada is in responsible investments1
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75%
Of surveyed investors in Canada want their financial advisors to inform them of sustainable investing options2
Important disclosures
1 Global Sustainable Investment Review 2020 – Global Sustainable Investment Alliance.
2 2020 RIA investor opinion survey.
Our sustainability resources
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Download2020 sustainable and responsible investing report
Download our report to get a comprehensive view of Manulife Investment Management’s sustainability-focused research capabilities, active ownership practices, and climate related strategy and risk management.
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DownloadClimate change statement
Download our statement to get a comprehensive view of Manulife Investment Management’s approach to climate change in investing.
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DownloadOur commitment to sustainability
Download our brochure to learn more about Manulife Investment Management’s commitment to sustainability.
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Download2022 Stewardship report
Download our stewardship report to learn more about our culture of stewardship, our focus on risk management, and how our active ownership practices are driven by our client and stakeholder focus.
Important disclosures
The reports are limited to addressing the in-house investment capabilities of Manulife Investment Management and does not assess the sustainability-focused activities of any unaffiliated asset managers.
Related viewpoints
April 16, 2021
A climate-friendly approach to investing
New investment solutions favour companies with strong strategies to reduce carbon emissions.
February 11, 2021
The Paris Agreement as a long-term investment framework
Investors have a vital part to play in ensuring corporations help meet the required reductions in carbon emissions set out by the Paris Agreement and in doing so, can also enhance returns.
February 1, 2021
What is ESG investing? A spectrum of approaches
In a wide-ranging interview, two environmental, social, and governance (ESG) investment leaders from Manulife Investment Management discuss how ESG is transforming investing globally and how their active approach sets them apart.
Important disclosures
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.