The IA Clarington Inhance SRI Funds, sub-advised by responsible investing pioneer Vancity Investment Management Ltd. (VCIM), can help you achieve your wealth-creation goals while meaningfully contributing to a more sustainable future.
VCIM does more than invest in companies with attractive return potential and exceptional environmental, social and governance (ESG) practices. Central to the VCIM investment process is a robust program of shareholder engagement designed to ensure that companies held in the Inhance SRI Funds continuously strive to elevate and expand their ESG commitments.
2023/Q2–2024/Q2 Engagement Activities
58 Engagements
45 Companies engaged
26 Engagement topics
11 Shareholder resolutions filed
10 Investor statements of support signed
Seven impact areas drive VCIM’s engagement activities. Click on each for a snapshot of the team’s work and download our annual Dialogue to Action report for a comprehensive look at their industry-leading program of ESG advocacy.
Biodiversity & Nature
Biodiversity & Nature
We filed a shareholder proposal with Starbucks asking the company to conduct an analysis of their financial exposure and potential contribution to biodiversity loss in coffee supply chains. We also requested that they publicly disclose the results of this assessment. As a result, Starbucks made the commitment to publicly report on its Arabica coffee bean supply chain in accordance with the Taskforce on Nature-related Financial Disclosures (TNFD) framework. In response, we voluntarily withdrew the proposal.
Governance & Disclosure
Governance & Disclosure
Interest in artificial intelligence (AI) has exploded in recent years, and it has become an exciting growth story for the market. However, AI can present potential risks, including bias and discrimination, invasion of privacy, identity theft, and child predation. This year we signed the World Benchmarking Alliance’s Investor Statement on Ethical AI and reached out to Microsoft as part of the alliance to have an in-depth discussion on these issues and the company’s ongoing commitment to addressing them.
Other engagements within this focus area centred on the CEO-to-median-employee-pay ratio. We have filed shareholder resolutions with several of Canada’s largest banks, asking them to publish their ratios. Scotiabank acknowledged the value of disclosure and began publicly reporting the information in 2023.
Climate, Energy & Just Transition
Climate, Energy & Just Transition
We submitted climate-related shareholder proposals to RBC, TD and Scotiabank. Scotiabank developed a Net-Zero Preparedness Score to assess their clients’ transition readiness, and committed to providing additional reporting on specific metrics in October 2024. RBC reported insights from their assessment of energy-sector clients and agreed to continue reporting on these clients’ progress over time. As a result, we withdrew our proposals from both banks.
We had productive discussions with TD; however, a withdrawal agreement did not come to fruition. The proposal went to a vote at TD’s annual general meeting (AGM), receiving significant support with almost one-third of shareholders going against management’s recommendation and supporting our proposal.
Human Capital Management
Human Capital Management
This year we filed shareholder proposals asking Canadian National Railway (CN Rail) and Canadian Pacific Kansas City (CPKC, formerly CP Rail) to negotiate paid sick leave (PSL) policies with all unions representing their American workforce. We presented proposals at the companies’ AGMs in April 2024 and received 11.6% support on average, a strong result for a proposal in its first year.
Since our proposal, CN Rail and CPKC have come to additional PSL agreements with select unions representing part of their workforce. However, we plan to continue engaging with them to work towards PSL for their entire workforce.
Financial Resilience & Diversity, Equity, Inclusion and Reconciliation (DEIR)
Financial Resilience & Diversity, Equity, Inclusion and Reconciliation (DEIR)
We engaged with U.S. value retailer Five Below to discuss the benefits of paying living wages to their full- and part-time staff, encouraging them to work towards this goal. As a result, they committed to taking the information we provided to their ESG committee and board. Following this review, Five Below has committed to continuing the dialogue. We look forward to working with their senior leadership next year on how they can improve their wage practices to benefit their workers, and ultimately, the company.
VCIM does not invest in companies whose primary line of business includes:
-
Fossil fuels
-
Tobacco
-
Nuclear power
-
Military weapons
-
Adult entertainment
-
Gambling
VCIM team
Learn more about the ESG and portfolio management team:
Inhance SRI Funds
Explore the Inhance SRI suite of standalone mutual funds and all-in-one portfolios:
Mutual funds
- IA Clarington Inhance Bond SRI Fund
- IA Clarington Inhance Monthly Income SRI Fund
- IA Clarington Inhance Canadian Equity SRI Class
- IA Clarington Inhance Global Equity SRI Class
- NewIA Clarington Inhance Global Small Cap SRI Fund
All-in-one portfolio solutions
Resources
Read our suite of brochures to learn more about VCIM’s approach to responsible investing: