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.

Self-reflection and next steps on Diversity, Equity and Inclusion

Racial justice, an important component of a more general movement for workplace Diversity, Equity and Inclusion (DEI), is an issue which resonates with EIG members, committed as we are to ethical investing. In September 2020 14 EIG members gathered (virtually) to discuss antiracism and reflect on how EIG can integrate it into its investing and ways of working. We discussed possible avenues for engagement, while recognizing EIG’s limited resources (as a reminder, we are a volunteer investment club, entirely member-run). As a first step, we developed a survey that was sent to all EIG members in order to prioritize actions. 

EIG members indicated that:

• The favoured course of action for EIG is to research antiracist investment opportunities.
• It is difficult to prioritise shareholder engagement, as many topics that EIG addresses are important.  Environmental issues are ranked as the most important, with labour rights and antiracism, close behind.
• Members are not particularly interested in holding a public event on antiracism.
• Members have some availability to put time into work towards racial justice at EIG.

Que signifie l'antiracisme pour le GIÉ?

Comme le dit Ibram X. Kendi, « soit nous soutenons des politiques qui conduisent à des inégalités raciales et à l'injustice […] ou bien nous soutenons des politiques et nous poussons pour des politiques qui mènent à la justice et à l'équité pour toutes et tous».

Ces dernières semaines, plusieurs articles au sujet de l'antiracisme pour les investisseurs ont été publiés (par exemple dans Fortune, Forbes, CNBC et Quartz). Dans le même ordre d'idées, un article publié dans le Financial Post donne un aperçu de la diversité (ou de son absence) dans la composition des conseils d'administration au Canada.

Tout cela me fait réfléchir à ce que l'antiracisme pourrait signifier pour le GIÉ. Dans un premier temps, j’ai jeté un coup d’œil à notre portefeuille d’investissements (investissements communautaires et placements boursiers, 30 organisations en tout) pour voir si les organisations dans lesquelles nous investissons parlent de l’antiracisme ou prennent des mesures concrètes. Les résultats de cette enquête rapide sont ci-dessous.

What does antiracism mean for EIG?

As Ibram X. Kendi puts it “We are either supporting policies that are leading to racial inequities and injustice […] or we’re supporting policies and pushing policies that are leading to justice and equity for all.”

In recent weeks several articles on what antiracism means for investors have been published (for example in Fortune, Forbes, CNBC and Quartz). In the same vein, an article published in the Financial Post gives an overview of diversity (or lack thereof) in Board membership in Canada.

All this got me thinking about what antiracism might mean for EIG. As a first step, I’ve taken a look at our investment portfolio (both community investments and equities, 30 organisations in all) to see if the organisations we invest in are thinking about antiracism or taking any concrete actions. The results of this quick survey are below.

We’re now reflecting on whether EIG should engage more actively in this issue as a group and, if so, in what way. We’ve had some ideas, which you’ll find at the end of this article, but would really like to hear your thoughts on this. Let us know what you think.