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 legislated investment-only mandate, 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 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 Responsible Investing establishes how CPP Investments approaches ESG factors within the context of our sole mandate 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.