Our approach to responsible investing
We seek to balance a sustainable approach to investing with creating real value for our clients.
At Triasima, we believe that integrating environmental, social, and governance (ESG) factors into stock selection and portfolio construction creates long-term opportunities to optimize the risk-return and generate positive social and environmental impacts. As a signatory to the United Nations Principles for Responsible Investment (PRI), we consider the creation of shared value to be an integral part of our fiduciary duty.
The motivations of responsible investors have evolved from purely moral or ethical to more social and environmental ones. Responsible investing has been refined to include a variety of approaches such as negative screening to exclude certain industries, ESG integration, and active ownership. Incorporating ESG factors into our investment decisions involves identifying companies that demonstrate significant or increasing efforts towards sustainability. Being inclusive of those companies that can excel financially by adopting ESG best practices is at the heart of responsible investing.
Triasima's approach to responsible investing is consistent with the six United Nations Principles for Responsible Investment (PRI). We believe that the adoption of these Principles is likely to better align the interests of investors with the social and environmental interests of society.
Take ESG issues into account in our investment and decision-making process
Be an active investor and consider ESG issues in our voting and active shareholding policies
Request entities in which we invest to disclose relevant information on their ESG practices
Promote the acceptance and application of these Principles among the asset management community
Work together to improve our efficiency in implementing the Principles
Provide an account of our activities and progress in implementing the Principles
Withholding investing in certain companies or industries deemed controversial, such as tobacco, cannabis or weapons to satisfy the specific preferences and ethical values of our clients.
Consideration of ESG factors in the investment process is embedded in the fundamental pillar of our Three-Pillar ApproachTM. ESG criteria are integrated to capture the growth profile of companies and their exposure to ESG risks and opportunities. If the ESG risk is deemed too high, the company may be rejected. It should also be noted that the relevance of ESG issues differs from one sector or industry to another.
Engaging is viewed as a constructive dialogue with the entities in which we invest. Our goal is to better understand the most relevant ESG issues for the growth of these entities, to better assess their ESG risks and opportunities, and to inform our investment decisions.
Promoting awareness among these entities of the importance of adopting ESG best practices, targeting ESG issues specific to their core business, and reporting on their ESG performance and initiatives is at the heart of our responsibilities as active investors.
Voting is another important element of active shareholding. In accordance with its responsibilities as an investment fund manager, Triasima has established voting policies and procedures with respect to the proxies it receives. These policies are available upon request.
The application of our voting policies by our service providers is monitored. Special attention is given to non-traditional proposals, including those related to ESG issues. Analysis and review of these proposals are performed to ensure that voting is aligned with the best long-term ESG interests.
The Sustainable Development Goals (SDGs) launched by the United Nations in 2015 are considered a global reference guide for responsible investors. Investing in line with one or more of the 17 SDGs helps investors to better understand the real impacts of their investments and to target investment opportunities aligned with the most promising economic, social, and environmental issues.
At Triasima, we consider the alignment of our investments with two of the SDGs, namely climate action and gender equality, issues that are of great interest to many of our clients, consultants, and partners.
Triasima will revise its policy on a biannual basis or more often if deemed necessary.
Several ESG reports, including the carbon footprint of our portfolios, their ESG ratings, and their alignment with the SDGs, are provided to our existing and potential clients and consultants, both on request and on a regular basis.
Oversight and accountability are the responsibility of Triasima's Management Committee, with ultimate responsibility resting with the Board of Directors.
While integrating ESG factors into our investment activities and processes is an integral part of a responsible investor's responsibilities, it is also essential that we lead the way in adopting best practices by promoting an inclusive and equitable workplace and reducing our own environmental footprint.
We have designed strategies specifically to address climate change issues, namely our Canadian Equity Ex-Fossil and All Country World Equity Ex-Fossil strategies, which exclude securities of issuers with fossil fuel reserves or that use coal for energy production. These strategies are designed for investors who are concerned about the carbon footprint of their portfolio.
Reducing plastic pollution and encouraging greater circularity of materials is at the heart of the Principles of Responsible Investment. According to the United Nations Environment Programme, the world is only 8.6% circular, and less than 10% of plastic is recycled. The rest either ends up in the environment and the oceans causing problems related to microplastic and the reduction of biodiversity, or in incineration sites causing toxic emissions and risks to human health.
Solutions to plastic pollution require long-term policies such as a global treaty on plastic pollution. Such an initiative has the potential to leverage funding for innovative solutions, reduce investment risk, and have a positive impact on the environment and society.
Our support for the establishment of an international treaty against plastic pollution - adopted by the UN Environment Assembly in March 2022 and to be developed by 2024 - stems from our belief in the importance of investing in a responsible, sustainable and circular way.