Effective Date: March 13, 2025
Role and Goals
Responsibilities as defined in Canadian Bar Association (CBA) Investment Committee Mandate remain.
The CBA is cognizant of its responsibility to make decisions in the best interests of its beneficiaries and seeks all funds to be invested to achieve attractive risk-adjusted returns. Accordingly, it will seek to invest in the enterprises, sectors and funds that may achieve this end in Canada and globally. At the same time, the CBA places significant importance on companies and investments that follow or may improve responsible environmental, social and governance practices.
Beliefs and Approach to ESG
The CBA recognizes the importance of its fiduciary responsibility for the long-term viability of CBA. It also acknowledges that environmental, social and governance factors can impact the current or future value of an investment and risk management of the funds and portfolios.
In seeking to achieve its goals, the CBA believes that engagement and promoting better behaviour or practices from its investee companies or investment funds is an effective approach. Engagement enables the CBA to maintain its presence and influence through its investment managers.
ESG Policy
The CBA expects that each of its investment managers (the “managers”) will integrate ESG criteria into their investment analysis to the extent these factors are deemed material to investment performance. This expectation is independent of whether or not the managers are signatories to the Principles for Responsible Investment (PRI).
While this policy does not impose specific constraints on portfolio investments, ESG factors are to be taken into consideration by managers to the extent possible when acting on behalf of the CBA, where relevant and material to the assessment of investment value or mitigation of investment risk, and appropriate ESG metrics shall be reported to the CBA.
The Investment Committee will bring this position to the attention of the managers and its investment consultants.
Annual ESG Assessment and Feedback
The investment committee of CBA will monitor its current investment portfolios with respect to ESG factors. On an annual basis:
- Each investment manager will be asked to provide a record of its proxy voting and identify any active engagements or stewardship undertaken;
- Each investment manager will be asked to identify any ESG developments and issues that may impact the CBA’s investments and related risks;
- The CBA’s investment committee will monitor evolving standards, methodologies, and investment options with respect to ESG investing on a regular basis; it will ask its investment managers or others to report on these topics.
Managers will be informed of the result of this assessment and may be asked to discuss any investments that conflict with the CBA’s consideration of ESG with the investment committee or its designate.
Annual Review
This Policy will be reviewed on an ongoing basis as needed by the CBA’s investment committee.
Investment Policies of CBA
Nothing in this policy is designed to override or be in conflict with CBA’s Statements of Investment Policies and Goals, which apply to the CBA's investments, consisting of pooled funds, also known as indirect investments.