Climate Position Statement
At IGM Financial, we are in the business of helping Canadians achieve their financial goals today and tomorrow. Sustainability is integral to who we are and how we do business, and as allocators of capital we can play an outsized role in advocating for the changes we need to see in the world.
Climate change is a defining challenge of our time with transformative, and far-reaching impacts on the global economy and society. A unified and decisive global response to climate change is essential to manage risk to our communities, businesses and ecosystems and build a resilient financial future. It’s also imperative that this transition be led in a way that creates an equitable and prosperous future for all Canadians that does not leave workers or communities behind.
We support the goals of the Paris Agreement and further support the need for a stronger global response to climate change. The UN Intergovernmental Panel on Climate Change urges action to limit global warming to 1.5 degrees, pushing to net zero carbon emission by 2050. Achieving these goals will require new ways in which the world innovates, invests, spends, and manages risk.
Our business operates primarily through three companies:
- As wealth managers, IG Wealth Management (IG) and Investment Planning Counsel (IPC) provide financial advice and distribute financial products and services to retail clients across Canada, through affiliated networks of financial advisors. High quality global investment sub-advisors are hired to provide clients access to a diverse range of investment products and solutions.
- As an asset manager, Mackenzie Investments provides investment management services to a suite of funds distributed primarily through third-party financial advisors, the institutional marketplace, and strategic alliances including certain funds for IG and IPC.
With this climate statement as a north star, our operating companies are empowered to pursue climate risks and opportunities in the way that best represents their distinct identities and business models and where they bring unique value or impact to global climate objectives.
At the heart of it all, it's about engaging to shape the global transition, investing sustainably to achieve competitive long-term returns for our clients and aligning our own operations – all in pursuit of a sustainable, healthy, and prosperous future for all Canadians.
Our Climate Governance
We are continually strengthening governance of sustainability matters in line with international principles and standards. Material climate factors are part of our commitment to responsible management and IGM’s executive level Risk Management and Corporate Sustainability Committees provide oversight on climate issues. The Board provides oversight on sustainability risk and strategy, with key risk insights discussed with the Board Risk Committee.
We have convened an enterprise-wide Task Force for Climate-related Financial Disclosure (TCFD) Working Group of senior leaders who are responsible for taking an active role in driving the integration of climate change risks and opportunities across business strategies and promoting enhanced climate-related disclosures.
Mackenzie has established a Sustainable Investing Centre of Excellence responsible for ESG research and advocacy, sustainable investing solutions and investment stewardship. Our companies also each have sustainable investing committees and working groups comprised of executive leaders who oversee sustainable investing priorities, including climate change.
Our Climate Commitments
We believe our climate commitments align with the diversity of client interests and investment objectives we are trusted with, the financial markets and economies where we operate, and ultimately with international climate goals.
1. We will invest toward a greener, climate resilient economy
Our investment processes and products give us the opportunity to manage climate risks and create innovative solutions to our ongoing climate issues. We are continually enhancing our climate knowledge, capabilities, and product innovation to allow us to meet our clients’ needs and expectations.
- We will design climate focused product solutions and keep looking for more ways to invest toward a greener, climate resilient economy.
- We will train and educate our investment teams to understand and integrate climate risks and opportunities in investment analysis, including training on evolving tools, data and scenario analysis.
- We will work closely with our investment sub-advisors to ensure they integrate material climate factors into their investment analysis and decision-making processes.
- We will measure portfolio investment emissions to track our progress and impact, and enable reporting in line with TCFD recommendations.
- We will commit to setting interim targets for investment portfolios as a first step, consistent with the global ambition to achieve net zero emissions by 2050.
2. We will collaborate and engage to help shape the global transition
As wealth and asset managers, we play a vital role in shaping the global transition to a sustainable, climate-resilient economy by bringing climate-smart investment advice and solutions to clients, helping companies adapt to a net zero, climate resilient economy, and participating in industry and policy advancements.
- We will engage our clients and advisors on their climate hopes, expectations and priorities and apply those insights in building targeted advice, expertise, and investment solutions.
- We will incorporate climate in our engagement and proxy voting activities, including exercising our influence with companies on material climate issues and promoting better climate disclosures.
- We will amplify our voice with the world’s largest emitters and most promising clean companies by leaning into collaborative ventures.
- We will engage in regulatory and policy dialogue, and collaborate to advance science-based approaches, data, and tools for our industry - to help our sector stand as a confident ally in the fight against climate change.
- We will empower our employees to stand as one behind our climate commitments, and will educate and encourage activities in support of climate action.
3. We will demonstrate alignment through our corporate actions
- We will target to be carbon neutral in our corporate offices and travel by 2022 and apply a climate lens to our procurement policies and procedures.
- We will continue our commitment to transparent decision-useful climate disclosures including through our annual CDP and UN supported Principles for Responsible Investment (PRI) submissions and by reporting in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
Pursuing Continuous Growth
Our climate journey will be one of continuous learning and growth. As information amasses and experience deepens, we will continue to build our knowledge and enhance our strategies to ensure that our clients, advisors and investment teams have the tools they need to invest in a healthy, prosperous and resilient tomorrow.