To invest or not to invest... / Investir ou ne pas investir...

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That is the question members of the EIG Equities Trading Committee asked themselves when a proposal to invest in Brookfield Asset Management (BAM) obtained marginal approval from EIG members following a lively discussion on fossil fuels (see previous post, Fossil fuels: divestment vs transition). While the vote on BAM led to a positive average score of +0.34 (scoring options from +2 to -2) meaning approval in principle, it also garnered one veto, with many members weighing in, expressing concerns in their comments about the appropriateness of such an investment for EIG. Happy to see so many members engaged with investment decisions in this way, the committee gave serious thought to their opinions and ultimately decided not to invest in BAM at this time.

Seeing our investment $$ at work

The great thing about investing locally is being able to see first-hand how our investment dollars help a community improve its quality of life. EIG members had this experience recently on the occasion of a return visit to Bâtiment 7, a project owned by the non-profit Collectif 7 à Nous, in Pointe-St-Charles. Bâtiment 7 is a 90,000 square-foot former CNR maintenance building progressively being converted into a shared community space.

Fossil fuels: divestment vs transition

 A question in the minds of many responsible investors these days involves the extent to which they should divest from companies with links to the fossil fuel industry, as opposed to supporting those that are making concrete efforts to transition to a carbon-neutral society by 2050, the goal set out in the Paris Agreement. Clearly, divestment is appropriate when considering companies directly involved in fossil fuel exploration, extraction or production. But what about those that support the fossil fuel industry indirectly with, for example, financing, and transportation? Attempts to find answers to this complex question formed the theme of a recent EIG event.

Expanding local community support to Toronto

EIG has long supported communities in Quebec by investing in local microcredit organizations, which provide financing and business support to aspiring entrepreneurs who do not have access to conventional financing. 

Proactive engagement by Scotiabank

Heidi Monk

EIG has been very pleased with the responsiveness and willingness to engage by Scotiabank (see a summary of our engagement on climate change and diversity in 2021). This August Scotiabank took their engagement with EIG to a new level, by reaching out to us to offer to have a phone call where they could update us on recent progress. Two Senior Vice Presidents spent about 45 mins speaking with me on behalf of EIG: Julie Walsh, SVP, Corporate Secretary and Chief Corporate Governance Officer, Meigan Terry, SVP, Chief Communications and Social Impact Officer.

Banking on diversity

In addition to its efforts on climate change (see The role of banks in addressing climate change) EIG has also been engaging on diversity and racial equity with the two banks in its portfolio (Scotiabank and Desjardins).

There have been some encouraging developments on this front as awareness of systemic racism throughout our organizational structures has grown.

The role of banks in addressing climate change

There has been a flurry in the media this spring about climate risks for banks and their role in reaching net zero by 2050 in order to align with the Paris Agreement[i]. So what does it mean, to commit to reaching net zero?

What do we mean by "antiracist investment"?

In September 2020 EIG members who responded to a survey noted that identifying antiracist investment opportunities was a priority for the group (see Self-reflection and next steps on Diversity, Equity and Inclusion). But what exactly do we mean by “antiracist investing” and how, concretely, does committing to it affect EIG’s investment philosophy? This was the question posed by members of EIG’s Executive Committee when they pointed out that the survey did not define “antiracism” in relation to investment, and that it likely meant myriad things to the different respondents.