Environment, social and governance (ESG) integration
UVic believes responsible investing, and taking environmental, social & governance (ESG) factors into consideration, will reduce long-term risks and improve risk adjusted returns. All our investments are made with full consideration of all factors, including ESG factors.
We will:
- analyse financial information and ESG information;
- identify material financial factors and ESG factors;
- assess the potential impact of material financial factors and ESG factors on economic, country, sector and company performance; and
- make investment decisions that include considerations of all material factors, including ESG factors.
ESG Factors
Environmental
We consider how a company interacts with the physical environment.
Environmental factors include (but are not limited to) climate change; greenhouse gas emissions; biodiversity loss; deforestation; air, water or resource depletion or pollution; waste management; change in land use; ocean acidification; avoiding land degradation; disruption of Indigenous land; and promoting healthy ecosystems.
Social
We consider how business practices impact on the rights, well-being and interests of people and communities.
Social factors include (but are not limited to) human rights; labour standards in the supply chain; child, slave and bond labour; workplace health and safety; freedom of association and freedom of expression; human capital management and employee relations; equity, diversity and inclusion; relations with local communities including Indigenous Peoples; activities in conflict-affected high risk areas; weapons prohibited under international treaties and conventions signed by Canada; health and access to medicine; human security; consumer protection; and maintaining cultural ways of life including Indigenous languages, laws and ways of being.
Governance
We consider the governance of a company.
Governance factors include (but are not limited to) board structure, composition, size, diversity, skills, and independence; executive pay; shareholder rights; stakeholder interactions; transparency; business ethics; bribery and corruption; internal controls; conflicts of interest; support for community organizations; and partnerships with Indigenous Peoples and their businesses.