Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced paper usage/printing for both internal and external documents
• Banned single-use plastics in the office
• Removed all coffee pods from Calgary office and implemented water stations

Social Achievements

• Formed the Council for Diversity and Inclusion (CDI)
• Joined the North American chapter of the Diversity Project
• Provided over $2 million of support across more than 150 charitable organizations
• Implemented employee programs such as “More and Mawer” Community Giving program

Governance Achievements

• Formalized commitment to improving ESG-related activities by forming the Mawer ESG Committee in 2019
• Encouraged several portfolio companies to incorporate capital efficiency metrics into their executive compensation plans (Croda, Air Liquide, Wolters Kluwer)
• Engaged with Dye & Durham on governance matters, advocating for a single share structure and improved board composition

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic on some portfolio companies (e.g., Richards Packaging)
• Transition to electric vehicles potentially reducing demand for lubricants (Fuchs Petrolub)
• Trend away from single-use plastics impacting Bunzl's business

Mitigation Strategies

• Fuchs Petrolub planning to create CO2-neutral products
• Monitoring changing customer behaviors for Bunzl
• Richards Packaging's decision to not increase prices despite increased demand

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Transition to electric vehicles impacting demand for lubricants

Opportunities

• Development of CO2-neutral products

Reporting Standards

Frameworks Used: PRI signatory

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Diversity, Equity and Inclusion (DEI)
• Community Giving

Environmental Achievements

• 91% of invested companies have explicit disclosures on environmental impact and sustainability targets.
• Initiatives to push companies like Stella-Jones and MTY Food Group to better quantify and disclose environmental impacts and waste reduction plans.
• Improved environmental disclosures and targets from Bravida.

Social Achievements

• Introduced an annual learning stipend for employee development.
• Launched the 'myCAREER' program for career development.
• Increased investment in leadership development with the 'Coaching for Success' program.
• Introduced a flexible vacation policy.
• Doubled mental health practitioner benefits for employees and dependents.
• Provided training to People Leaders on mental health support.
• Partnered with First Nations communities through Nuna Logistics.

Governance Achievements

• Formalization of Mawer’s ESG Committee in 2019, restructured and expanded in 2021.
• Voted against management on 143 out of 465 (31%) compensation-related proposals in 2021.
• Successfully engaged with Intertek to include ROIC in their incentive plans.
• Engaged with companies to prevent changes to articles of association that would reduce shareholder voting control.
• Engaged with a hospitality company to prevent discretionary pandemic-related compensation adjustments.

Climate Goals & Targets

Environmental Challenges

• Lack of adequate disclosure on ESG matters from some companies.
• Difficulties in obtaining sufficient data on supply chain practices, particularly regarding forced labor in Xinjiang province.
• Inconsistencies between stated safety policies and actual accident rates in some companies.

Mitigation Strategies

• Engaging with management teams to improve disclosures and practices.
• Using proxy voting to influence corporate governance and compensation.
• Monitoring and engaging with companies on safety concerns.
• Refusing investments in companies that lack adequate disclosure on material ESG risks.

Supply Chain Management

Responsible Procurement

• Engagement with companies to improve disclosure on supply chain practices, particularly regarding forced labor.

Climate-Related Risks & Opportunities

Opportunities

• Investment in companies driving the transition to sustainable energy (e.g., Kingspan, Sika, Legrand).

Reporting Standards

Frameworks Used: PRI signatory

Certifications: Caring Company status from Imagine Canada

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, SASB, PRI

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion (DEI)
• Governance
• Human Rights
• Supply Chain Sustainability
• Community Engagement
• Water Stewardship
• Waste Reduction
• Energy Transition

Environmental Achievements

• Lower carbon intensity across equity portfolios than respective benchmarks.
• Significant reduction in waste going to landfills by CCL Industries (target 90% by 2025).
• 100% of CCL Industries facilities in North America and Europe to be net zero by 2030.
• Sleep Country diverted more than 165,000 mattresses from landfills.
• Essity achieved 80% of packaging from renewable or recycled materials (goal of 85% by 2025).
• TerraVest installed a water recycling system reducing water usage in safety testing.
• Kingspan reduced energy intensity in its processes by 90% over the past decade.

Social Achievements

• Launched firm-wide online DEI education program.
• Established a talent acquisition working group to expand diverse talent pipeline.
• Reviewed hiring practices from a DEI lens.
• Increased proportion of coffee purchases with sustainability certifications (JDE Peet's).
• Expanded Common Grounds initiative to help small-scale coffee farmers (JDE Peet's).
• Prioritizing Indigenous procurement (Hydro One).
• Fostering Indigenous community partnerships (Pembina Pipeline).

Governance Achievements

• ESG committee now reports to the Risk Management and Audit Committee (RMAC), strengthening board-level oversight and accountability.
• Refreshed Responsible Investing Policy to clarify engagement definition and processes.
• Introduced portfolio-level ESG metrics in quarterly investment reviews.
• Closely reviewing climate-related risk management frameworks (TCFD).
• Engaged with companies to improve ESG disclosures and compensation plans.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on various sectors (wildfires, energy transition).
• Lack of capacity to meet Indigenous procurement demand (Hydro One).
• Risks associated with fuel sales and merchandise categories (Alimentation Couche-Tard).
• Lack of ESG disclosures in some portfolio companies.
• Potential for negative impacts on investments due to ESG issues.

Mitigation Strategies

• Underweighting high-emitting sectors (energy).
• Engaging with companies to understand and address ESG risks and opportunities.
• Incorporating ESG factors into investment decisions and risk assessments.
• Developing and implementing mitigation strategies for climate-related and non-climate risks.
• Improving ESG disclosures through engagement with companies.

Supply Chain Management

Responsible Procurement

• Sustainability certifications for coffee purchases (JDE Peet's)
• Prioritizing Indigenous procurement (Hydro One)

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Climate change impacts on various sectors

Transition Risks

• Energy transition risks
• Declining fuel volumes (Alimentation Couche-Tard)

Opportunities

• Investing in renewable energy
• Developing sustainable products and services

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• SDG 2
• SDG 6
• SDG 7
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15

ESG considerations address various SDGs on a case-by-case basis.

Sustainable Products & Innovation

• Fireproofing materials (Stella-Jones)
• High-performance insulation products (Kingspan)
• Sustainable packaging materials (Essity, Winpak)
• Electric vehicle components (BorgWarner)

Awards & Recognition

• Canada’s Top Employers for 2024
• Alberta’s Top Employers for 2023 and 2024
• Caring Company status from Imagine Canada