Responsible Investment - Combine in Wheat Field

Responsible Investment

Doing Business the Right Way

We consider environmental, social and governance (ESG) factors in our investment analysis and decision-making to better capture risk-adjusted returns for our clients.

AIMCo’s approach to Responsible Investment (RI) is guided by our core values, our fiduciary duty to clients, and a long-term investment horizon.

AIMCo encourages responsible corporate behaviour and believes effective corporate governance is fundamental to mitigating risk and achieving sustainable returns.

AIMCo's Responsible Investing Pillars

Structure

AIMCo’s RI governance structure emanates from the Board-approved RI Policy and cascades across the entire organization to all asset classes. The RI team reports directly to the CIO to allow active communication and interaction with the portfolio managers and facilitate greater alignment and integration of ESG principles. The RI committee oversees RI strategy, and approves AIMCo’s proxy voting guidelines, exclusions guidelines and engagement guidelines.

Investment Process

AIMCo enhances shareholder value for our clients by exercising voting rights based on AIMCo’s proxy voting guidelines, and takes unique circumstances and local markets into account. AIMCo’s RI Team considers multiple research inputs and confers with portfolio managers for companies on our strategic watch list before instructing our votes.

Proxy Voting Overview

AIMCo has experienced a steady increase in the number of total ballots and shareholder proposals over the last three years. We supported 91% of ballots and 53% of shareholder proposals in the 2015 calendar year. AIMCo evaluates shareholder proposals conscientiously to consider whether the proposal enhances shareholder value. We generally support proposals which uphold corporate governance principles such as Board quality, independence, diversity and pay aligned with performance.

We do not always agree with management – we voted against 13% of management proposals in 2015.

Year Over Year 2012-2015 Proxy Voting Comparison

- 2015 2014 2013 2012
Shareholder Proposals 424 409 382 265
AIMCo Support SHP 53% 36% 43% 30%
Vote Against Management 13% 16% 16% 18%
Total Ballots 25,505 24,009 22,887 21,983

Responsible Investment

Engagement Process

AIMCo prefers to engage with companies to effect positive change where possible, rather than divest of applicable holdings. RI engages with companies identified by our key ESG focus areas: Climate Change, Worker Rights and Safety across the supply chain, and Shareholder Rights. We engage with select companies to identify best practices, understand trends and advocate for improvements.

Reporting & Communications

AIMCo’s RI guiding documents are available through our website, our annual RI report, and in our United Nations Principles for Responsible Investment (UNPRI) Transparency Report. AIMCo’s voting record is disclosed on our website after the meeting has passed.

Advocacy & Collaboration

AIMCo is an active member of the global RI community and is a member of:

  • Pension Investment Association of Canada (PIAC)
  • Corporate Governance Committee
  • Canadian Coalition of Good Governance (CCGG): Public Policy Committee
  • Responsible Investment Association (RIA)
  • United Nations Principles for Responsible Investment (UNPRI)
  • International Corporate Governance Network (ICGN)
  • Shareholder Responsibility Committee

AIMCo collaborates with like-minded peers on select advocacy initiatives, company engagements, consultations and public policy dialogues to advance best ESG practices and promote Client interests. Concerted collaboration enhances AIMCo’s ability to influence company behaviour and public policy. AIMCo’s advocacy contributions are posted on our website.

GRESB

In 2015 in partnership with GRESB and nine other institutional investors, AIMCo took on a leading role in facilitating a new, global sustainability benchmarking tool for infrastructure assets – GRESB Infrastructure. While infrastructure investments are a good hedge against inflation and offer key societal benefits, they are also highly illiquid, long-term and require large capital investments, necessitating rigorous due diligence and monitoring to appropriately understand, price and mitigate risks, including ESG factors

Investments Over $300M

Corporate and Government Issuers


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