| Overall Rating | Gold |
|---|---|
| Overall Score | 68.02 |
| Liaison | Maxine Dandois-Fafard |
| Submission Date | Nov. 10, 2023 |
Institut National de la Recherche Scientifique (INRS)
PA-10: Sustainable Investment
| Status | Score | Responsible Party |
|---|---|---|
|
3.00 / 3.00 |
Caroline
Painchaud Finance director Administration |
"---"
indicates that no data was submitted for this field
Part 1. Positive sustainability investment
10,561,129
US/Canadian $
Value of holdings in each of the following categories:
| Value of holdings | |
| Sustainable industries (e.g., renewable energy or sustainable forestry) | 0 US/Canadian $ |
| Businesses selected for exemplary sustainability performance (e.g., using criteria specified in a sustainable investment policy) | 5,280,565 US/Canadian $ |
| Sustainability investment funds (e.g., a renewable energy or impact investment fund) | 4,984,853 US/Canadian $ |
| Community development financial institutions (CDFIs) or the equivalent | 0 US/Canadian $ |
| Socially responsible mutual funds with positive screens (or the equivalent) | 0 US/Canadian $ |
| Green revolving funds funded from the endowment | 0 US/Canadian $ |
If any of the above is greater than zero, provide:
INRS currently works with two fund managers:
- 50% of our investments are with AlphaFixe Capital, a UN-PRI (Principles for Responsible Investment) signatory who won the Fixed Income category of the ESG Grand Canadian Championship in 2022. They report annually on responsible investment. Our investments with this manager are in the Green Bonds Fund: Green bonds are financial instruments that finance or re-finance, in part or in full, green projects which are aligned with the four core components of the Green Bond Principles. For nearly a decade, these securities have allowed investors to participate in the development of a low carbon economy. The AlphaFixe - Green Bonds fund is a dedicated impact investment fund. Impact investing is generally defined as any form of investment aimed at creating a positive environmental or social impact, while generating a financial return. Green bonds are intended, among other things, to finance projects to reduce greenhouse gases (GHGs) or adapt to climate change. Social bonds finance projects that provide access to basic services or healthcare, to name but a few, while sustainable bonds enable issuers to contribute to both environmental and social causes. AlphaFixe Capital affirms that our 94.4% of the market value of the “AlphaFixe - Obligations vertes” fund is made up of impact bonds (impact investing is generally defined as any form of investment aimed at creating a positive environmental or social impact, while generating a financial return), and the vast majority of which (91.3%) is green bonds. Therefore, 47.2% or our fund fits the Sustainability Investment Funds category. Out of 133 bonds financing environmental projects in the AlphaFixe - Green Bonds fund, here is the number of bonds contributing to the United Nations (UN) Sustainable Development Goals (SDGs): (6 in SDG 6, 59 in SDG 7, 118 in SDG 9, 132 in SDG 11, 2 in SDG 12, 132 in SDG 13, 8 in SDG 14, and 4 in SDG 15). An obligation can contribute to the achievement of several SDGs. For example, a wind energy project contributes to goals 7, 9, 11 and 13. Contribution to the achievement of the SDGs is only measured for green bonds validated by the AlphaFixe process. More about this fund here: https://www.alphafixe.com/gb. Moreover, according to AlphaFixe: "AlphaFixe excludes all investments in tobacco, gambling, arms, alcohol and cannabis companies, as well as those that employ children. In addition, all companies involved in the exploitation or exploration of proven or probable fossil fuel reserves are excluded from all client portfolios and mutual funds managed by AlphaFixe".
- 50% of our investments are with Jarislowsky Fraser, an UN-PRI signatory, a co-founder of the Canadian Coalition for Good Governance (CCGG) in 2002, and a signatory of both the Canadian Investor Statement on Diversity and Inclusion and the Canadian Investor Statement on Climate Change. The two funds in which we invest with this manager are the JF Fossil Fuel Free Canadian Equity Fund and the JF Fossil Fuel Free Global Equity Fund, two quality-focused, low-carbon portfolios. Jarislowsky Fraser won the Multi-assets category of the ESG Grand Canadian Championship in 2022 by demonstrating in-depth integration of ESG considerations and stewardship activities, which is defined as proxy voting and engagement with portfolio companies. Jarislowsky Fraser’s longstanding commitment to being responsible stewards of its clients’ assets is based on better decision-making practices, stewardship, and rigorous integration processes. The Jarislowsky Fraser unique investment process incorporates ESG considerations and stewardship for all investments, including several indicators for governance, the environment, and social issues, as well as SASB indicators. As a result, sustainability analysis and performance are integral to the decision-making process, as long as the other factors relevant to its well-defined approach to quality. For our two funds, Jarislowsky Fraser excludes the GICS® Energy Sector, with the exception of renewable energy entities as defined by Jarislowsky Fraser, as well as non-energy sector companies that i) own operating businesses with material proven thermal coal, oil or gas reserves, or ii) that have a significant amount of value attributable directly to the extraction and production of fossil fuels, or indirectly through transportation, distribution, equipment and services, or iii) that have significant exposure to power generation from fossil fuels. Exceptions may be made where a company has a clear strategy to meaningfully increase the percentage of renewables. Furthermore, the portfolio carbon intensity in managed to deliver materially reduced emission compared to indexes (the carbon intensity of our two funds, the Canadian and the Global Fossil-Fuel-Free Funds, is 87% and 91% lower than what is found in the S&P/TSX Composite Index and the MSCI World Index, respectively). See more about the two funds in the attached documents below. Jarislowsky Fraser also reports annually on responsible investment. More : https://jflglobal.com/en-ca/sustainable-investing/.
- 50% of our investments are with AlphaFixe Capital, a UN-PRI (Principles for Responsible Investment) signatory who won the Fixed Income category of the ESG Grand Canadian Championship in 2022. They report annually on responsible investment. Our investments with this manager are in the Green Bonds Fund: Green bonds are financial instruments that finance or re-finance, in part or in full, green projects which are aligned with the four core components of the Green Bond Principles. For nearly a decade, these securities have allowed investors to participate in the development of a low carbon economy. The AlphaFixe - Green Bonds fund is a dedicated impact investment fund. Impact investing is generally defined as any form of investment aimed at creating a positive environmental or social impact, while generating a financial return. Green bonds are intended, among other things, to finance projects to reduce greenhouse gases (GHGs) or adapt to climate change. Social bonds finance projects that provide access to basic services or healthcare, to name but a few, while sustainable bonds enable issuers to contribute to both environmental and social causes. AlphaFixe Capital affirms that our 94.4% of the market value of the “AlphaFixe - Obligations vertes” fund is made up of impact bonds (impact investing is generally defined as any form of investment aimed at creating a positive environmental or social impact, while generating a financial return), and the vast majority of which (91.3%) is green bonds. Therefore, 47.2% or our fund fits the Sustainability Investment Funds category. Out of 133 bonds financing environmental projects in the AlphaFixe - Green Bonds fund, here is the number of bonds contributing to the United Nations (UN) Sustainable Development Goals (SDGs): (6 in SDG 6, 59 in SDG 7, 118 in SDG 9, 132 in SDG 11, 2 in SDG 12, 132 in SDG 13, 8 in SDG 14, and 4 in SDG 15). An obligation can contribute to the achievement of several SDGs. For example, a wind energy project contributes to goals 7, 9, 11 and 13. Contribution to the achievement of the SDGs is only measured for green bonds validated by the AlphaFixe process. More about this fund here: https://www.alphafixe.com/gb. Moreover, according to AlphaFixe: "AlphaFixe excludes all investments in tobacco, gambling, arms, alcohol and cannabis companies, as well as those that employ children. In addition, all companies involved in the exploitation or exploration of proven or probable fossil fuel reserves are excluded from all client portfolios and mutual funds managed by AlphaFixe".
- 50% of our investments are with Jarislowsky Fraser, an UN-PRI signatory, a co-founder of the Canadian Coalition for Good Governance (CCGG) in 2002, and a signatory of both the Canadian Investor Statement on Diversity and Inclusion and the Canadian Investor Statement on Climate Change. The two funds in which we invest with this manager are the JF Fossil Fuel Free Canadian Equity Fund and the JF Fossil Fuel Free Global Equity Fund, two quality-focused, low-carbon portfolios. Jarislowsky Fraser won the Multi-assets category of the ESG Grand Canadian Championship in 2022 by demonstrating in-depth integration of ESG considerations and stewardship activities, which is defined as proxy voting and engagement with portfolio companies. Jarislowsky Fraser’s longstanding commitment to being responsible stewards of its clients’ assets is based on better decision-making practices, stewardship, and rigorous integration processes. The Jarislowsky Fraser unique investment process incorporates ESG considerations and stewardship for all investments, including several indicators for governance, the environment, and social issues, as well as SASB indicators. As a result, sustainability analysis and performance are integral to the decision-making process, as long as the other factors relevant to its well-defined approach to quality. For our two funds, Jarislowsky Fraser excludes the GICS® Energy Sector, with the exception of renewable energy entities as defined by Jarislowsky Fraser, as well as non-energy sector companies that i) own operating businesses with material proven thermal coal, oil or gas reserves, or ii) that have a significant amount of value attributable directly to the extraction and production of fossil fuels, or indirectly through transportation, distribution, equipment and services, or iii) that have significant exposure to power generation from fossil fuels. Exceptions may be made where a company has a clear strategy to meaningfully increase the percentage of renewables. Furthermore, the portfolio carbon intensity in managed to deliver materially reduced emission compared to indexes (the carbon intensity of our two funds, the Canadian and the Global Fossil-Fuel-Free Funds, is 87% and 91% lower than what is found in the S&P/TSX Composite Index and the MSCI World Index, respectively). See more about the two funds in the attached documents below. Jarislowsky Fraser also reports annually on responsible investment. More : https://jflglobal.com/en-ca/sustainable-investing/.
Percentage of the institution's investment pool in positive sustainability investments:
97.20
Part 2. Investor engagement
Sustainable investment policy
Yes
None
A copy of the sustainable investment policy:
---
None
The sustainable investment policy:
https://inrs.ca/wp-content/uploads/POL-Placement-Fonds-dotation-VFP.pdf
None
Does the institution use its sustainable investment policy to select and guide investment managers?:
Yes
A brief description of how the sustainable investment policy is applied:
The investment policy refers to an investment strategy that states the following:
A first fund manager responsible for the entrusted funds will use investment vehicles with the following characteristics:
50% of the Endowment Fund to be invested in "green" bonds. This mutual fund must meet ESG (environmental, social, governance) requirements.
Minimum threshold = 40%
Maximum threshold = 60%
A second fund manager responsible for the entrusted funds will use investment vehicles with the following characteristics:
50% of the Endowment Fund in a global equities fund comprising 25% Canadian equities. This mutual fund must meet ESG (environmental, social, governance) requirements and not contain any stocks of fossil fuel companies.
Minimum threshold = 40%
Maximum threshold = 60%
A first fund manager responsible for the entrusted funds will use investment vehicles with the following characteristics:
50% of the Endowment Fund to be invested in "green" bonds. This mutual fund must meet ESG (environmental, social, governance) requirements.
Minimum threshold = 40%
Maximum threshold = 60%
A second fund manager responsible for the entrusted funds will use investment vehicles with the following characteristics:
50% of the Endowment Fund in a global equities fund comprising 25% Canadian equities. This mutual fund must meet ESG (environmental, social, governance) requirements and not contain any stocks of fossil fuel companies.
Minimum threshold = 40%
Maximum threshold = 60%
Proxy voting
No
None
A copy of the proxy voting guidelines or proxy record:
---
None
A brief description of how managers are adhering to proxy voting guidelines:
---
Shareholder resolutions
No
Examples of how the institution has engaged with corporations in its portfolio about sustainability issues during the previous three years:
---
Divestment efforts and negative screens
Yes
A brief description of the divestment effort or negative screens and how they have been implemented:
The policy stipulates:
In the pursuit of good governance and sustainable development, INRS chooses to entrust fund management mandates to managers who adhere to Environmental, Social, and Governance (ESG) criteria and whose long-term environmental footprint is minimized by excluding all fossil fuel companies, while still aligning with the investment strategy adopted annually by the Board.
The Committee must ensure on an annual basis that a minimum of 60% of the total funds are invested in primarily Canadian companies, with a minimum of 15% in businesses with significant operations in Quebec.
In the pursuit of good governance and sustainable development, INRS chooses to entrust fund management mandates to managers who adhere to Environmental, Social, and Governance (ESG) criteria and whose long-term environmental footprint is minimized by excluding all fossil fuel companies, while still aligning with the investment strategy adopted annually by the Board.
The Committee must ensure on an annual basis that a minimum of 60% of the total funds are invested in primarily Canadian companies, with a minimum of 15% in businesses with significant operations in Quebec.
Approximate percentage of endowment that the divestment effort and/or negative screens apply to:
100
Investor networks
Yes
None
A brief description of the investor networks and/or collaborations:
INRS currently works with two fund managers who both are UN-PRI (Principles for Responsible Investment) signatories; one of them is also a signatory of the Canadian Investor Statement on Diversity and Inclusion.
Optional Fields
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Additional documentation to support the submission:
Data source(s) and notes about the submission:
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The information presented here is self-reported. While AASHE staff review portions of all STARS reports and institutions are welcome to seek additional forms of review, the data in STARS reports are not verified by AASHE. If you believe any of this information is erroneous or inconsistent with credit criteria, please review the process for inquiring about the information reported by an institution or simply email your inquiry to stars@aashe.org.