The CAAT Pension Plan takes very seriously its fiduciary responsibility to the over 65,000 plan members that we work for. In carrying out all of the Plan’s investment decisions, we are guided by the three core principles of our Responsible Investing Policy:
- Proxy voting – allows CAAT, as a shareholder, to have a say in business matters raised at shareholder meetings of the public companies in which it’s invested. In 2019, CAAT voted on over 12,000 proxy issues at meetings of over 1,000 companies.
- Corporate engagement – involves the Plan working with other institutional investors to encourage regulators and Canadian corporations to strive for more comprehensive disclosure of ESG (environmental, social, and governance) risks.
- Encouraging the integration of ESG factors in the investment process by our investment partners.
The primary goal of the CAAT Plan’s responsible investing activities is to assist in maximizing the Fund’s risk-adjusted returns. Ultimately, CAAT believes that companies that have sound corporate governance structures and practices will outperform those that do not, and that managing the risk to long-term shareholder return includes the awareness and management of the environmental and social impacts of a corporation’s business activities.
Sometimes companies do not act responsibly, which can result in significant harm and loss. One way of holding companies accountable for good corporate governance is by seeking damages through securities litigation. To promote good corporate governance, CAAT is willing to serve as lead plaintiff in securities class action lawsuits where the case is strong.
If you would like to know more about CAAT’s Responsible Investing Policy, visit the Responsible Investing page.