At CPP Investments we consider responsible investing simply as intelligent long-term investing. Over the exceptionally long investment-horizon over which we invest, ESG factors have the potential to be significant drivers – or barriers – to profitability and shareholder value. For these reasons we refer to what many call ‘Responsible Investing’ activities simply as Sustainable Investing.
Given our legislative objective, we consider and integrate both ESG risks and opportunities into our investment analysis, rather than eliminating investments based on ESG factors alone.
As an owner, we monitor ESG factors and actively engage with companies to promote improved management of ESG, ultimately leading to enhanced long-term outcomes in the companies and assets in which more than 20 million CPP contributors and beneficiaries have a stake.
CPP Investments has established governing policies, approved by our Board of Directors, to guide our ESG activities. Our Policy on Sustainable Investing establishes how CPP Investments approaches ESG factors which aligns with our legislative objective to maximize long-term investment returns without undue risk of loss. Our Proxy Voting Principles and Guidelines provide guidance on how CPP Investments is likely to vote on matters put to shareholders and communicate CPP Investments’ views on governance matters.
Our Approach to Sustainable Investing
The most recent triennial report by the Chief Actuary, released in December 2019, again confirmed that the base and additional CPP are sustainable at the legislated contribution rates over the 75-year projection period. While the Chief Actuary’s report was produced prior to the COVID-19 pandemic, it takes into account changes in demographics, the economy and investment environments, including significant financial-market events.