RESPONSIBLE INVESTING TASK FORCE #005-08-18-06 : Receiving Responsible Investing Task Force Report
https://archives.anglican.ca/link/official10599
- Date
- 2018 June 1-3
- Type
- Resolution 03-18-06 [sic i.e. 03-06-18]
- Seconder
- The Rev. Dr. Lynne McNaughton
- Prologue
- Lead Animator for Public Witness for Social and Ecological Justice, Dr. Ryan Weston, and Mr. Robert Boeckner, member of the Responsible Investing Task Force, updated Council on the work of the task force. Dr. Weston reminded Council why the task force was formed, of its mandate, and membership (see document #004-05-18-06, pages 5-6). Part of the task force’s work included surveying Anglican and Anglican-affiliated funds (e.g., dioceses, theological colleges, foundations) about responsible investing practices. Council was also reminded that the task force’s three areas of focus included theological reflection, examining current investment practices/Anglican investment context, and developing a communications strategy to share what they were learning and the work being undertaken.
- Mr. Boeckner reported on the four primary approaches for responsible investing for church funds, of which a fund would most likely use a combination. The four primary approaches include: integration of environmental, social, and governance factors; active ownership (i.e. trying to influence change from within companies as shareholders; impact investing or making specific investments with social goals in mind; and investment exclusions (divestment). Other considerations expanded on in the task force’s discussions included overseeing investment managers, relevance to climate change, economic reconciliation, and opportunities for collaboration. Mr. Boeckner also reported that the task force developed a draft guide, Investing with a Mission, that offers possibilities for other funds to consider.
- On behalf of the task force, Dr. Weston spoke to the group’s recommendations formed in response to the work undertaken. The task force’s recommendations are that:
- - 1. That General Synod Consolidated Trust Fund and the General Synod Pension Plan explore active ownership strategies, including:
- -- a) Outlining the fund’s approach to proxy voting in its Statement of Investment Policies and Procedures (SIPP), ensuring that where possible the fund's shares are voted in line with the fund's objectives and priorities.
- -- b) Adopting proxy voting guidelines that take into account good ESG [environmental, social, and governance] practices and engage proxy voting service providers or asset managers that will execute votes in accordance with those guidelines; or, where the fund does not have voting rights, seek out managers that have positive ESG components in their voting guidelines and a track record of voting in favour of shareholder resolutions on ESG issues.
- -- c) Seeking opportunities to engage with the companies in which they have invested to encourage the companies to improve their ESG policies and performance while providing desired returns, either directly or through a service provider. Where invested in pooled funds, the fund may still choose to engage an external engagement service provider or to ask the pooled fund manager to do so.
- -- d) Acting in concert with other investors to amplify their effect, for example by associating themselves with third parties that assemble groups of investors to further particular ESG objectives through shareholder engagement.
- - 2. That The Anglican Church of Canada sign on to public policy letters by groups of investors that encourage better regulation of corporate and capital market behaviours.
- - 3. That the General Synod Consolidated Trust Fund and the General Synod Pension Plan consider setting aside a percentage of their assets to be used for impact investing in assets that provide a financial return while furthering an ESG objective such as transitioning to a low carbon economy, Indigenous business development, reducing income inequality, etc. In order to do so, we recommend that the funds:
- -- a) Discuss investment principles and whether there are social or environmental impacts that are relevant to the mandate of the funds.
- -- b) Discuss the fund’s risk tolerance and liquidity needs that may be relevant to investment decisions.
- --c) Retain a consultant to help explore possible investment opportunities that match the social or environmental outcomes above while staying within the financial mandate of the fund.
- - 4. That, if ESG ratings or active engagement efforts indicate that a company's activities will not likely be modified to address material risks or salient ESG concerns, divestment be considered. Before divesting completely from a sector the General Synod Consolidated Trust Fund and the General Synod Pension Plan should consider if best in class companies in that sector would meet the fund’s standards for investment.
- - 5. Recognizing that where the General Synod Consolidated Trust Fund and the General Synod Pension Plan is invested in pooled funds, specific company or sector exclusions may not be possible, the Responsible Investing Task Force recommends that, if exclusions are important to the fund’s mandate, it may select pooled fund managers that are willing to provide products that make those exclusions.
- - 6. That the General Synod Consolidated Trust Fund and the General Synod Pension Plan should include ESG considerations in asset manager selection and oversight processes by:
- -- Including questions about ESG and active ownership in any RFPs or manager selection processes.
- -- Asking fund managers for relevant active ownership policies (for example the manager’s policy and guidelines related to proxy voting).
- -- Seeking funds and advisors who are signatories of the United Nations Principles for Responsible Investing.
- -- Including questions about ESG concerns, including how the manager voted on shareholder proposals, in periodic portfolio reviews; and
- -- Asking managers to present information on the ESG performance of the portfolio when providing regular updates.
- - 7. That the General Synod establish a program for:
- -- a. Communication of the work of the task force and dissemination of future resources, including but not limited to a capacity-building toolkit.
- -- b. The evaluation of the incorporation of Responsible Investing in the General Synod Consolidated Trust Funds and the General Synod Pension Plan.
- -- c. The collection and reporting of any changes in the practices of diocesan funds, ecclesiastical provincial synod funds, and any other church affiliated funds who seek to provide ongoing input that may be of interest to individuals within the church.
- Dr. Weston presented two resolutions from the task force.
- Text of motion
- Be it resolved:
- That the Council of General Synod receive with gratitude and appreciation this report of the Responsible Investing Task Force.
- ADOPTED #03-18-06 [sic i.e. 03-06-18]
- Notes
- Council referred the second resolution to the Resolutions Committee after discussion about its wording. The amended resolution was presented on Sunday.
- Subjects
- Anglican Church of Canada. Responsible Investment Working Group
- Investments - Moral and ethical aspects
- Investments - Religious aspects - Anglican Church of Canada
- Corporate social responsibility - Anglican Church of Canada