Our responsible investing philosophy is guided by our:
Fiduciary Duty
We base our investment decisions on anticipated risk-adjusted performance, but we also consider the positive or negative impact that ESG factors are likely to have on long-term risk and return.
Long-Term Investment Horizon
We focus on the preservation of capital over the long term to enable our clients to meet their financial obligations.
Purpose & Core Values
Our purpose is to help our clients secure a better financial future for the Albertans they serve. Our core values are excellence, transparency, humility, integrity and collaboration.
Our ESG Focus Areas
Climate Change
Climate change has emerged as one of the most pressing systemic risks to date. We recognize the business imperative of integrating climate change considerations into our investment strategies and view the physical, regulatory and reputational risks of climate change as material to our clients’ objectives.
Strategic Response to Climate Change Task Force on Climate-Related Financial Disclosures Report
Environmental Management & Disclosure
We believe that companies exhibiting better disclosure of their environmental mitigation strategies, performance and related material environmental metrics are likely to demonstrate better risk-adjusted performance over the long run.
Water Risk
Access to water is both a fundamental human right and a critical sustainable development challenge. Water stress, flooding and drought can translate into significant risks for businesses, the environment and society at large.
Worker Safety & Human Rights Across the Supply Chain
We expect companies to actively uphold basic human rights, including adopting high standards of occupational health and safety for their direct operations while working to ensure the goods they source from across their supply chain are free from forced or child labour, or human rights abuse.
Data Privacy
Data is becoming one of the most important assets held by companies and is a significant driver of financial value in today’s economy. We seek assurances from companies that appropriate safeguards are in place to uphold data privacy and to protect against operational, financial and reputational risk.
Shareholder Rights
Shareholder support is required for key matters such as the election of directors, approval of financial statements and where fundamental structural changes to the business are being proposed. We believe that exercising shareholder rights promotes shareholder value.
Pay for Performance
We encourage appropriately designed executive compensation practices which can align investor and management interests by awarding pay for performance and encouraging long-term company growth.
Board Diversity
We believe that diverse, competent and independent boards promote board effectiveness, robust risk management, stronger corporate governance and lead to better risk-adjusted performance over the long term.
Our Approach
Build
The governance of responsible investment at AIMCo begins with our Board-approved Responsible Investment Policy which applies to all assets under management. Our Responsible Investment Committee oversees the RI strategy and approves all related guidelines and ESG Focus Areas.
Integrate
Consideration of ESG factors enables better-informed investment decisions and supports long-term stakeholder value. The diversified nature of our portfolios calls for a tailored approach to manage relevant ESG risks and opportunities.
Pre-Investment
We use a responsible investing lens to evaluate potential investments’ governance framework and ESG performance. This informs our voting stance at publicly traded companies and assists portfolio managers in their investment decision-making processes.
Post-Investment
We track ESG initiatives, risks and performance at investee companies and may follow up to engage on key ESG topics or to more fully address company ESG policies and practices.
Influence
We are committed to acting as a responsible steward of our clients’ investments to promote sustainable, long-term value. Our stewardship activities include proxy voting and engagements. We are guided by our “voice over exit” philosophy — we prefer to exert our influence as a shareholder to drive positive change rather than divest from a company and unnecessarily reduce the investible universe.
Engagements
We engage with issuers on topics in our ESG focus areas. Engagements are intended to encourage responsible business practices, foster better corporate governance and advance more sustainable financial markets.
Proxy Voting
Shareholders of a company are entitled to exercise the voting rights attached to their shares. Proxy voting on our publicly held assets is a key responsible investment activity, allowing AIMCo to exercise shareholder voice on behalf of our clients to promote sustainable, long-term value.
Advocate & Collaborate
AIMCo actively contributes to investor dialogue, demonstrating thought leadership and advocacy in alignment with our ESG focus areas. We submit commentary to national and international bodies and regulators and contribute to investor working groups.
Inform
We demonstrate transparency and accountability by publicly disclosing our responsible investing activities and guiding documents to foster client confidence. We report to our clients and internal stakeholders on a regular basis and yearly through the AIMCo Annual Report, Responsible Investment Report and PRI Transparency Report and GRESB surveys.