NEI Investments Corporate Social Responsibility Report 2009

Transcription

1 NEI Investments Corporate Social Responsibility Report 2009

2 2 The Global Reporting Initiative The Global Reporting Initiative (GRI) has pioneered the development of the world s most widely-used sustainability reporting framework. NEI Investments follows the GRI framework in its own reporting and encourages companies in its portfolios to follow the framework in their own reporting. We also participate in consultations to enhance the framework, and support GRI as an Organizational Stakeholder. This Report contains NEI Investments CSR commitments. The GRI Indicators Report provides details about how our reporting complies with the GRI Guidelines. Read our CSR Report 2009 GRI Indicators: > About NEI > Corporate Social Responsibility Find out more about GRI: NEI Investments Corporate Social Responsibility Report 2009

3 3 NEI Investments A Message From Our CEO We are pleased to present our first Corporate Social Responsibility Report. At NEI Investments, we believe sustainability touches on every aspect of our work and that we can integrate the concept of sustainability across everything we do. This is the basis for our Corporate Social Responsibility (CSR) approach. During 2009 we developed a company-wide CSR Policy, based on six commitments: 1. Pursue the highest ethical standards in the ways we do business. 2. Demonstrate leadership in responsible investing. 3. Minimize the environmental and social footprint of our operations and supply chain. 4. Strive to be competitive with employers in our industry and to have a highly-engaged workforce. 5. Identify and engage with our stakeholders. 6. Contribute to the community. Like many financial services companies, our direct operational footprint is relatively small. By far our biggest opportunity for impact is through the investment decisions we make and our influence on the companies held within our funds. We will continue to be a catalyst for positive change through our proactive program of corporate engagement. Our CSR Policy defines our sustainability priorities. But it is not enough to commit ourselves to action and continuous improvement: we must also report on the results. This first CSR Report is a baseline. As we develop an understanding of our impacts, we will set targets for improvement and disclosure. We hope you will accompany us on our sustainability reporting journey. John Kearns CEO Read our Corporate Social Responsibility Policy: > About NEI > Corporate Social Responsibility

4 4 Our Commitments 1. Pursue the highest ethical standards in the ways we do business. We expect our people to do the right thing so we need to ensure that they know what is expected of them. In 2009, we implemented new ethical business policies and procedures for all employees at NEI Investments. As a mutual fund company, we must also do the right thing for our investors at all times by strictly following all industry regulations and requirements. The design and sale of mutual funds is closely regulated in Canada to protect investors. Learn more about the regulations governing mutual funds in Canada: We believe companies should be transparent about their lobbying positions and political activities. NEI Investments did not make any political contributions in 2009 our Corporate Donations Policy specifically bars us from funding politicians or political parties. As part of our responsible investing commitment, we often raise our voice in policy consultations to advance sustainability standards. We disclose our positions and submissions to industry associations and standards agencies on our website. Industry Recognition for our Mutual Funds At the 2009 Canadian Investment Awards: Ethical Balanced Fund was awarded the Socially Responsible Investment Fund Award Silver Ethical Special Equity Fund was awarded the Canadian Small/Mid Cap Equity Fund Award Bronze The United Nations Principles for Responsible Investment In 2009 NEI Investments made a company-wide commitment to the United Nations Principles for Responsible Investment (PRI) and through its Ethical Funds has subscribed since the initiative was launched in PRI aims to help investors improve long-term returns by integrating environmental, social and governance analysis into investment decision-making and ownership practices. NEI Investments corporate engagement work was featured as a good practice case study in the PRI Report on Progress Find out more about PRI and the Principles for Responsible Investment: NEI Investments Corporate Social Responsibility Report 2009

5 5 2. Demonstrate leadership in responsible investing. NEI Investments commitment to responsible investing is long-established and well-documented. Our ESG Investing Program is based on the thesis that companies integrating best environmental, social and governance practices into their strategy and operations will provide higher risk-adjusted returns over the long term. Our industry-leading program integrates the following elements: Evaluation of companies for material environmental, social and governance risks. Corporate engagement on environmental, social and governance issues with companies in our funds. Proxy voting based on environmental, social and governance guidelines. Public policy and standards work to mitigate systemic environmental, social and governance risks. Research on emerging environmental, social and governance topics. All elements of the program are applied to our Ethical Funds family. Some elements of the program are also applied to the Northwest Funds family, or are provided as services to other investment institutions. Sustainable Investing Program Annual Report 2009 Every year, NEI Investments publishes a report covering all aspects of our comprehensive ESG Investing Program: company evaluations, corporate engagement, proxy voting, public policy, and sustainability research. The most recent report reflects on accomplishments in 2009, and highlights plans for Highlights from the 2009 Report Direct intensive engagement with 46 companies 34 of those 46 dialogues resulted in positive progress 11 shareholder proposals filed we withdrew 4 proposals when companies complied with our concerns Voted on over 7,500 agenda items at international and Canadian company AGMs (voting against management 46% of the time) Read the Sustainable Investing Program Annual Report 2009: > ESG Services > How we work > Accountability In Detail: Lines in the Sands Oil Sands Benchmarking In 2009 NEI conducted a major engagement-focused oil sands benchmarking study. We contacted all the publicly-owned companies operating commercial-scale oil sands projects, met with most of them, and researched their public disclosure. We published highlights of the research as a report, Lines in the Sands, and presented our findings at industry and investor conferences. The research results were used as the basis for intensive dialogue with oil sands companies on our 2010 Corporate Engagement Focus List. Read more about Lines in the Sands and access the report: > ESG Services > Research

6 6 3. Minimize the environmental and social footprint of our operations and supply chain. As an office-based financial services company, our biggest direct environmental and social impacts relate to paper, energy use and travel. Paper: For our printed materials, our Paper & Printing Selection Policy requires that we ask for recycled paper made from 100% post-consumer waste, and sets 30% as the minimum recycled content. We give preference to Forest Stewardship Council certified paper and seek out suppliers who use vegetable-based inks and sustainable energy sources to power their operations. In 2009 we switched from quarterly to semi-annual investor statements resulting in cost-savings and an approximate 30% reduction in paper consumption. Energy Use: We estimate NEI Investments annual energy use at our Vancouver and Toronto offices at 390 MWh. This translates to approximately 52 tonnes of carbon dioxide emissions. In 2009 we refreshed our IT infrastructure, including right-sizing our systems and equipment to reduce energy demand. We also began to explore the possibility of purchasing Bullfrog Power sustainable energy certificates for our Toronto and Vancouver offices, and implemented this in early Travel: In 2009, our employees drove 102,838 km in private cars on company business, producing estimated greenhouse gas (GHG) emissions of just over 25 tonnes of carbon dioxide equivalent. In 2010 we have set up an air travel tracking system that will allow us to calculate GHG emissions resulting from air travel. These measurements provide a starting point as we explore opportunities to reduce and offset our travel emissions. The Vancouver office participated in two green commuting initiatives in 2009: The Commuter Challenge and Bike to Work Week. 4. Strive to be competitive with employers in our industry and have a highly-engaged workforce. In a knowledge-based industry, our people are our biggest resource. In 2009 NEI Investments hired a Human Resources Manager tasked with ensuring that we remain competitive as an employer. We offer our employees a competitive package of compensation and benefits including extended medical and dental insurance, disability and life insurance, family assistance programs and fitness subsidies. We want our employees to develop professionally and provide education reimbursements for job-related training and education. Regrettably, 2009 saw higher-than-usual staff turnover through lay-offs, partly as a result of the integration of our operations post-merger, and partly as a result of cost-cutting in response to the downturn created by the global financial crisis. NEI Investments Corporate Social Responsibility Report 2009

7 7 5. Identify and engage with our stakeholders. Stakeholder engagement is critical to the success of any organization. To identify NEI Investments stakeholders, we consider individuals or groups who affect or are affected by our work. Our diverse stakeholders include our employees, owners, investors, ESG Services clients, the financial advisors who recommend our products, suppliers, regulators and governing bodies. What do Canadians want from responsible investing? In 2009 NEI Investments commissioned Globescan to survey Canadian attitudes on responsible investing. The results suggested the most influential factors for selecting responsible investing products were financial performance of the funds, and the CSR performance of the companies held within the funds. Globescan presented this research at the Canadian Responsible Investment Conference Contribute to the community. NEI Investments is owned 50% by the Credit Union Centrals and 50% by Desjardins Group. We provide a profit-sharing income distribution the Partnership Distribution to our credit union partners, based on each credit union s proportionate share of eligible NEI Investments assets under management. In 2009, over $4 million was distributed to the credit unions and Desjardins Group. We are proud to be the only investment manufacturer in Canada owned by the co-operative system, sharing profits with our key stakeholders and helping them achieve business success. In 2009 NEI Investments provided $230,000 in sponsorship to Alpine Canada as part of a multi-year Northwest Funds commitment. NEI Investments also contributed $75,227 in sales-related sponsorships and $6,940 in donations to a variety of cultural, sports and health-related causes. During the year we began to integrate and consolidate our corporate giving. This led to a cross-company donations and sponsorships policy developed in 2010 by an inter-departmental group of employees, setting both financial and sustainability criteria for causes we will support.

8 NEI Investments NEI Investments is owned 50% by the Provincial Credit Union Centrals and 50% by Desjardins Group, and offers a wide range of conventional and corporate class funds from Northwest Funds and from Ethical Funds, the largest responsible investing fund family in Canada. NEI Investments currently has over $4 billion in assets under management. NEI Investments has offices in Toronto, Vancouver and Montreal. To contact us: Head Office NEI Investments 155 University Avenue, 4th Floor Toronto, ON M5H 3B7 Canada Telephone: NEI, Northwest Funds, Aiming for Better Returns with Less Risk, Ethical, Ethical Funds, Ethical Growth Fund, and Make money. Make a difference. are registered marks and trademarks owned by Northwest & Ethical Investments L.P. NEI Investments Corporate Social Responsibility Report 2009