Pension fund managers calling for stronger ESG disclosure

A group of Canadian pension plan investment managers is calling on companies to standardize their environmental, social and governance disclosure to help them in their investment decision-making and better assess and manage their risks.

Together, the eight fund managers oversee a total of about $1.6 trillion in assets and are committing to strengthening ESG disclosure within their own organizations as well as allocating capital to investments best placed to deliver long-term sustainable value creation.

“How companies identify and address issues such as diversity and inclusion, human capital and climate change can significantly contribute to value creation or erosion,” the group noted in a joint statement.

Read: Pension plans focusing on ethical, responsible investing

However, the investment managers said they require transparency from companies, noting these entities have an obligation to disclose their key business risks and opportunities to financial markets.

It’s an integral part of these companies’ duty to contributors and beneficiaries and will unlock opportunities and mitigate risks, they added.

The statement was signed by the chief executive officers of the Alberta Investment Management Corp., the B.C. Investment Management Corp., the Caisse de dépôt et placement du Québec, the Canada Pension Plan Investment Board, the Healthcare of Ontario Pension Plan, the Ontario Municipal Employees Retirement System, the Ontario Teachers’ Pension Plan and the Public Sector Pension Investment Board.

Read: Canadians named to advisory board on pension plan transparency