April 27, 2006
The CPP Investment Board announced today that it has signed a global set of Principles for Responsible Investing published by the United Nations Environment Programme Financial Initiative (UNEPFI).
The Principles provide a best practice framework to help integrate consideration of environmental, social and governance (ESG) factors into investor decision-making and ownership practices, thereby improving long-term returns to beneficiaries. The CPP Investment Board was one of 20 leading institutional investors with combined assets under management of $1.8 trillion invited by the UN Secretary General to address the issue of responsible investing from an investment fiduciary perspective. ”The UNEPFI Principles for Responsible Investing provide a clear framework to address the impact environmental, social and governance factors can have on long-term financial performance,” said David Denison, President and CEO of the CPP Investment Board, speaking at today’s launch of the Principles for Responsible Investing at the New York Stock Exchange. ”The publication of a common set of principles for responsible investing is an important step forward. We hope more investors embrace these and help develop the research, tools and methodologies needed to incorporate ESG factors into the investment process. We are proud to have been involved in the formulation of these principles,” he added. The belief that ESG factors can generally have a positive influence on long-term financial performance is central to the CPP Investment Board’s own Policy on Responsible Investing. Published in October 2005, the Policy outlines the CPP Investment Board’s commitment to create an engagement capability to promote improved disclosure of and performance on ESG factors. Last month, the CPP Investment Board became the first Canadian investor to join the Enhanced Analytics Initiative, an international collaboration of asset owners and fund managers aimed at encouraging investment research that considers the impact of extra-financial issues on long-term company performance. The CPP Investment Board is also a signatory to the Carbon Disclosure Project and has participated in the Investor Network on Climate Change.
CPP Investment Board The CPP Investment Board invests the funds not needed by the Canada Pension Plan to pay current benefits. With a mandate from the federal and provincial governments, the CPP Investment Board is accountable to Parliament, to the federal and provincial finance ministers who serve as the stewards of the CPP and to 16 million contributors and beneficiaries. Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. Its fiscal year is from April 1 to March 31. For more information about the CPP Investment Board, visit www.cppib.ca.
For further information contact:
CPP Investment Board
John Cappelletti, Manager, Communications
Paul Clements-Hunt, Head of Unit, UNEP Finance Initiative (Geneva)