Contact Info

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Contact Info

• Laetitia Tankwe
• Extra financial risks Manager
• 1 514 525 5740 p 2426
• laetitia.tankwe_at_batirente.qc.ca

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PRI Implementation by small funds a realistic
challenge

• Bâtirentes approach

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Constraints to small funds

• Resources issues
• Cost of ESG research
• Cost of commercial voting service providers
• Voting and engagement is time consuming
• Limited staff and internal expertise
• Power to influence
• Lack of leverage (companies, fund managers,
  media)
• Poor capacity to engage in different legislations
• Use of Index or mutual funds

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Who are we ?

• Québecs Confederation des syndicats nationaux
  (CSN) labour sponsored pension fund (DC)
• Near 750 M USD of AUM (listed equities Canadian
  and Global, Canadian bonds incl. corporate, real
  estate, commodities)
• 6 external assets managers
• Staff of 7 persons
• A true commitment to ESG integration as part of
  our fiduciary duty (PRI Board member, involvement
  in different working groups)

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How do we do ?

• Key words Collaboration, communication, dialogue
• Two conditions for success
• Strong support from the Board of Directors and
  the Direction
• Involvement of our stakeholders (participants,
  Trade unions, portfolio managers, employees)

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• A 3 steps process

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Step 1 Elaboration of Bâtirentes RI policy

• Collaboration between a dedicated staff and
  external expertise (consultant)
• Support of the Direction and involvement of
  Bâtirentes stakeholders who took part into the
  elaboration process

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Step 2 Implementing our policy

• 2  strategies
• Bottom up ESG analysis of the companies in our
  portfolios, corporate engagement, proxy voting.
• Purpose Domino effect (Microsoft)
• What about our constraints ?
• Negotiation of an agreement with our portfolio
  managers and an ESG research provider
• Access to some services of a commercial voting
  service company (governance and proxy analysis)
• Emblematic companies higher impact if we have
  to go to the media
• Networking with other investors in Canada and
  abroad (mutual funds, institutional investors,
  Faith based, SRI) and NGOs on common objectives

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Step 2 Implementing our policy

• Top down Be involved in targeted initiatives to
  send a strong signal to the market as a whole.
• Purpose leverage effect with limited resources.
• Examples UN PRI, EAI, EITI, CDP, GRI, CBI, CWC
• What about our constraints ?
• Find a balance between international and local
  initiatives
• IT as a way to reduce travelling expenses
• Collaboration with other signatories / members as
  a way to exchange experience and to learn faster

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Step 3 Reporting

• Triple bottom line (GRI) Production of a
  sustainable and annual report on a yearly basis.
• Purpose
• A way to be in compliance with what we ask from
  issuers
• A way to keep our network informed and mobilised
• A tool to exchange experiences and to learn from
  the past
• What about our constraints ?
• Cost of reporting reduced by gathering info all
  along the year,
• Limited number of printed copies, report
  accessible on our website.

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Our objectives

• Expand our ESG factors integration
• More asset classes (Tool EAI and ?)
• Geographic diversification (Tool Clearinghouse,
  CWC and ?)
• Discussion on how to improve small funds
  capacities.

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Contact Info

• Laetitia Tankwe
• Extra Financial Risks Manager
• 1 514 525 5740 p 2426
• laetitia.tankwe_at_batirente.qc.ca