PSP Investments recognizes that a broad range of financial and non-financial considerations can be relevant in terms of making investment decisions. Our Responsible Investment Policy embodies our belief that responsible corporate behaviour with respect to environmental, social and governance (ESG) factors can generally have a positive influence on long-term financial performance. In analyzing the risks inherent in any investment, we look to identify, monitor and mitigate ESG issues that are, or could become, material to long-term financial performance. ESG risks are considered as part of the due-diligence process of potential investments and assessment of the practices of external managers in this area. The monitoring of these risks is part of an ongoing dialogue with external managers, boards of directors and senior management of the private and public companies in which we invest.
With the assistance of a service provider, PSP Investments is actively engaging public companies with a view to improving their ESG practices. Public companies are selected for engagement based on a process that takes into account elements such as a company’s ability to create shareholder value, the prospects for successful engagement and the ESG issues at hand. The intensity of our involvement with public companies evolves over time; some engagements involve one or two meetings over a period of months, while others are more complex and entail multiple meetings with board members and senior management over several years.
