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HOOPP

Sustainable Investing

Sustainable Investing

Sustainable investing leverages insights from environmental, social and governance (ESG) factors to enhance investment performance. ESG factors can take the form of risks or opportunities and can be relevant to an individual investment or the broader investment strategy throughout the investment life cycle.

Sustainable investing at HOOPP is about achieving our mission – i.e., to continue delivering on our pension promise – in a way that aligns with our values and promotes strong relationships with our stakeholders.

While HOOPP has invested this way for years, sustainable investing remains a growing area of focus. In 2019, we established a dedicated Sustainable Investing team and, in 2020, we launched a formalized Sustainable Investing approach to guide us moving forward. Our approach to sustainable investing is built upon our sustainable investing beliefs, which describe how we see our role in the world, and our framework, which provides a guide for what sustainable investing looks like at HOOPP. Both are outlined below.

sustainable investing

Our Sustainable Investing beliefs

We believe, as a large global investor operating in an increasingly interconnected world, our sustainability is linked to the health of the societies and environments we invest in.

We believe we have a fiduciary duty to deliver on our pension promise and a responsibility to do so in a way that considers the perspectives of our stakeholders.

We believe that helping to shape sustainable communities, ecosystems and capital markets is part of being a good corporate citizen and a prudent long-term investor.

We believe the cornerstone of effective investing is assessing returns against risks, and these can be positively or negatively impacted by environmental, social and governance factors.

Our Sustainable Investing framework

1. We integrate ESG factors in our investment strategy and activities 2. We are responsible stewards of our investments 3. We foster the sustainability of our communities, ecosystems and markets 1. We integrate ESG factors in our investment strategy and activities 2. We are responsible stewards of our investments 3. We foster the sustainability of our communities, ecosystems and markets

We integrate ESG factors in our investment strategy and analysis.

When HOOPP evaluates new investment opportunities, our investment teams integrate ESG factors into their analysis and decision making. This integration helps broaden the investment teams’ view of the risks and opportunities inherent in each investment. Learn more about our Sustainable Investing Policy.

Organizations like TCFD, SASB and CDP help investors, like HOOPP, access valuable ESG information.

Maple 8 media releaseIn 2020, HOOPP’s CEO joined the CEOs of Canada’s leading pension plan investment managers, including AIMCo, BCI, Caisse de dépôt et placement du Québec, CPP Investments, OMERS, Ontario Teachers' Pension Plan, and PSP Investments to issue a collective statement calling for companies to provide standardized Environmental, Social and Governance (ESG) data in order to strengthen investment decision-making and better assess and manage their collective ESG risks. Read the statement.

TCFD logo

HOOPP formally supports the Task Force on Climate-related Financial Disclosures (TCFD) which developed a voluntary framework for climate change reporting. 

SASB logo

As a member of the SASB Alliance, we believe that standardized, industry-specific and materiality-based standards are critical to sustainable investing. SASB standards enable businesses around the world to identify, manage and communicate financially-material sustainability information to their investors.

CDP logo

Since 2005, HOOPP has been an investor signatory of CDP. CDP encourages investors, companies and cities to build a sustainable economy by measuring and understanding their environmental impact.

We are responsible stewards of our investments.

Once an investment is made, we continue our sustainable investing approach through our stewardship activities, which include proxy voting, active engagements with companies to promote improved management of ESG factors and asset management activities.

Public investments

As an investor in public companies, HOOPP has the right to vote on certain company matters, such as the election of directors. As an active steward, we designed our own custom Proxy Voting Guidelines to promote long-term shareholder value, which helps generate the investment returns needed to pay pensions. Learn more about our Proxy Voting Guidelines.

Beyond voting proxies, our investment teams also meet with companies to encourage positive change on ESG matters. We engage with companies on a one-to-one basis, as well as collaboratively with other like-minded investors.

Typically, we engage with public companies, but we also include private companies that may pursue initial public offerings.

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Private investments

ESG considerations are embedded into asset management activities for private investments. For example, our real estate team has developed an industry-leading sustainability program that is a core part of its portfolio management activities. The team works closely with its partners to advance sustainability across its portfolio.

HOOPP's real estate sustainability program has also received multiple awards, including three 2020 Investment and Pensions Europe (IPE) Real Estate Global Awards in the categories of Portfolio Construction, Direct Strategy and Sustainable Strategy. Learn more about our real estate portfolio and read our latest Real Estate Sustainability Report.

We foster the sustainability of our communities, ecosystems and markets.

As a large global investor, our long-term success is connected to the sustainability of the communities, ecosystems and capital markets we operate in.

HOOPP is proud to have partnered with organizations such as the Canadian Coalition for Good Governance (CCGG), the 30% Club, Tobacco Free Portfolios and Principles for Responsible Investment (PRI).

CCGG logo

HOOPP is a member of the Canadian Coalition for Good Governance (CCGG), which promotes strong governance practices in Canadian companies. We endorse the CCGG's Stewardship Principles which align with HOOPP’s strategies for sound governance in how we manage the Plan.

30 Percent Club logo

HOOPP is a member of the 30% Club Canada Investor Group, which promotes greater gender diversity on company boards and management teams.

Tobacco-Free Portfolios logo

HOOPP is proud to be a signatory of the Tobacco-Free Finance Pledge. We have partnered with the not-for-profit Tobacco Free Portfolios to make a public commitment to sustainable finance and global health. In our pledge to tobacco-free investments, we are joined by over 130 leading financial organizations, across 22 countries.

PRI logo

 

Since 2011, HOOPP has been a signatory to the United Nations-supported Principles for Responsible Investment (PRI). PRI is the world’s leading proponent of responsible investment, with signatories representing over $100 trillion USD assets under management.

Climate change

Our changing climate may alter risks and opportunities facing the Plan, both through physical impacts as well as social, technological, economic, legal and policy responses to climate change. Managing climate-related risks to the investment portfolio is part of the Plan's risk-based approach to investing. For example, HOOPP conducted a climate risk assessment of its real estate portfolio and, after identifying flooding as the top risk, we shared best practices for flood resilience with our property managers.

The Plan will continue to deepen its focus on climate change as investors, governments, companies and communities work to address the climate crisis.

The ESG landscape is continually changing, as new risks and opportunities emerge. HOOPP is committed to featuring sustainable investing as an integral part of how the Plan invests, and we are excited to continue evolving our approach in a way that delivers ongoing and long-term value to our members.

This document provides a simplified overview of HOOPP's benefits based on the terms of the HOOPP Plan Text at the time of publication. From time to time, HOOPP may amend the HOOPP Plan Text. In cases where the information provided in this document differs from that contained in the HOOPP Plan Text, the HOOPP Plan Text will govern. More details, including the full HOOPP Plan Text and a complete description of the Plan and its benefits, can be found on hoopp.com.