Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Responsible Investing

Environmental Achievements

• Several portfolio companies set net-zero GHG emissions targets by 2040 or 2050, with interim reduction targets.

Social Achievements

• Engagement with portfolio companies to improve board diversity, including targets for women and racial/ethnic representation.
• Promoting mandatory Aboriginal awareness training for employees and contractors.

Governance Achievements

• Advocating for improved ESG disclosure standards through participation in CFA Institute and IFRS initiatives.
• Engagement with companies on improving governance structures to support climate oversight and aligning climate lobbying with company views.

Climate Goals & Targets

Environmental Challenges

• Lack of consistent ESG reporting and disclosure among portfolio companies.
• Resistance to ESG integration from some stakeholders.

Mitigation Strategies

• Active engagement with portfolio companies to improve ESG data collection and reporting.
• Advocating for stronger regulatory frameworks for ESG disclosure.
• Providing feedback on proposed regulations and standards.

Supply Chain Management

Responsible Procurement

• Engagement with portfolio companies on their supply chain practices.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, SASB, Future-Fit Business Benchmark

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Investing

Environmental Achievements

• Transitioned to PCAF for financed emissions quantification
• 50% carbon emission reduction target by 2030 from 2019 baseline for portfolios of clients committed to net-zero
• At least 90% of financed emissions from in-scope AUM considered net-zero, aligned, or aligning with a net-zero pathway by 2030

Social Achievements

• Launch of Eco-social Commercial Mortgages Pooled Fund focusing on affordable housing, green buildings, and community development
• Launched Impact Fixed Income Pooled Fund with investments in renewable energy, clean transportation, and energy efficiency
• Deepened engagement with investee companies on climate transition plans

Governance Achievements

• Incorporated Addenda’s United Nations Principles for Responsible Investing (PRI) score in CEO compensation (2021)
• Embedded sustainability goals within Executive Committee compensation plans (2022)
• Established a climate task force and three sustainable investing task forces

Climate Goals & Targets

Environmental Challenges

• Lack of sufficient and comparable climate disclosures from portfolio companies and third-party data providers
• Navigating the bumpy road to net-zero, including energy security concerns and geopolitical tensions

Mitigation Strategies

• Submitted support and recommendations to the U.S. Securities Exchange Commission (SEC) on proposed climate disclosure guidelines
• Developing further climate-oriented sector research and due diligence
• Piloting climate scenario analysis using MSCI’s Climate Value at Risk (CVaR) analytics

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Wildfires

Transition Risks

• Regulatory changes
• Technology shifts
• Carbon price shifts

Opportunities

• Investment in climate solutions
• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• Goal 7 — Affordable and clean energy
• Goal 13 — Climate action

Investments in renewable energy, clean transportation, and energy efficiency

Sustainable Products & Innovation

• Climate Transition Equity Pooled Funds
• Fossil Fuel Free Global Equity Pooled Fund
• Eco-Social Commercial Mortgages Pooled Fund
• Impact Fixed Income Pooled Fund

Awards & Recognition

• Canada’s Clean50 Award (Roger Beauchemin, 2021)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Natural Capital Management
• Human Rights
• Indigenous Rights
• Sustainable Development Goals (UN SDGs)
• Governance
• Social

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Principles for Responsible Investment (PRI)

UN Sustainable Development Goals

• UN Sustainable Development Goals (UN SDGs)

Addenda develops investment products and solutions related to the UN SDGs.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Development Goals (SDGs)
• Biodiversity
• Human Rights
• Indigenous Rights
• Corporate Governance
• Shareholder Rights

Climate Goals & Targets

Environmental Challenges

• Reversal of progress on SDGs due to environmental degradation, COVID-19 pandemic, geopolitical conflicts.

Mitigation Strategies

• Active ownership and stewardship to promote sustainable development and long-term inclusive wealth.
• Engagement with policy-makers, standard setters, and companies to drive positive change.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Principles for Responsible Investment (PRI), International Corporate Governance Network’s Global Stewardship Principles, Canadian Coalition for Good Governance’s Stewardship Principles, Net Zero Asset Owner’s Alliance Elevating Asset Manager Net Zero Engagement Strategies guidance

UN Sustainable Development Goals

• All SDGs

Addenda aims to align investments with positive sustainability outcomes and the SDGs.