The Canada Pension Plan Investment Board is updating its policy on sustainable investing to reflect an increased conviction in the importance of environmental, social and governance risks and opportunities.
“ESG considerations are inextricably linked to our ability to successfully achieve our investment objectives,” said Richard Manley, managing director and head of sustainable investing at the CPPIB, in a press release. “Our policy reflects the growing body of evidence showing that companies that integrate consideration of ESG-related business risks and opportunities are more likely to preserve and create long-term value.”
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The updated policy outlined the CPPIB’s specific support for companies tailoring their reporting with the sustainability accounting standards board and the task force on climate-related financial disclosures. It also highlighted the importance of asset owners engaging with companies on issues of sustainability.
“We believe active ownership through constructive engagement can enhance and sustain returns over time and significantly reduce investment risks,” said Manley. “As a supplier of patient, engaged and productive capital, we are able to work with companies to bring about change, helping them deliver enduring value-building growth.”