A leader in sustainable investment, Addenda Capital has been committed for years to creating value while encouraging the shift towards a better world that tends towards carbon neutrality. Interview with Roger Beauchemin, President and CEO.
Shareholder engagement is a tremendous lever for change that allows investors to encourage organizations to adopt responsible practices. In a world in full transformation, one thing is certain: the financial decisions taken today will have concrete repercussions for the years to come, both from an environmental and societal point of view. Driven by this fundamental principle, investment management firm Addenda Capital has distinguished itself for years by helping its clients build a better future while creating long-term wealth. A strategy that relies on rigorous processes, based on an in-depth risk assessment integrating sustainable investment practices. Overview with Roger Beauchemin, President and Chief Executive Officer.
Can a carbon neutral portfolio be compatible with optimal performance? ” The answer is yes. We believe that a forward-thinking society—one that understands that there will be a price for pollution, that we must aim for energy efficiency, that we must travel less or travel differently, that we must taking into account the carbon footprint of its services and activities—will have a definite advantage. Because if she adopts this approach faster than others, it will result in superior performance. This is how the most dynamic and agile companies will benefit from lower operating costs, as they will be less affected by pollution pricing. Their ability to generate profits will be greater, which will have a positive effect on the value of the securities and the financial performance. »
In what way is your strategy for analyzing ESG factors particularly rigorous? “Our approach is not one of excluding titles, although we’ve eliminated controversial weapons, which are immoral and illegal under Canadian law. Obviously, some clients, because of their values, want to exclude companies or sectors, which is legitimate. That said, our approach aims rather to broaden the financial analysis by adding extra-financial elements, which allows us to better gauge the risks and opportunities that could have an influence on a stock over the longer term.
From our point of view, the securities of companies offering better management of extra-financial factors such as the environment, the well-being of employees, the sound management of suppliers and the application of good governance standards, are those which outperform and show more sustainable growth rates. In particular, this allows us to allocate capital to companies that stand out through a positive contribution. For example, aligning capital with the 17 Sustainable Development Goals established by UN member states can advance sustainable development solutions while generating financial returns. »
“Today’s sustainable investment will quite simply be tomorrow’s investment. Young people understand this and cannot imagine that it could happen otherwise. And I think that one day or another, everyone will get started. »
— Roger Beauchemin, President and CEO, Addenda Capital
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