Canada Pension Plan Investment Board (CPP Investments) has published an updated Policy on Sustainable Investing, reflecting its increased conviction in the importance of considering environmental, social and governance (ESG) risks and opportunities amid an increasingly competitive corporate operating environment.

Integrating ESG factors, including climate change, into investment analysis and asset management activities supports the organization’s clear legislative objective: to maximize long-term investment returns without undue risk of loss.

“ESG considerations are inextricably linked to our ability to successfully achieve our investment objectives,” said Richard Manley, Managing Director, Head of Sustainable Investing, CPP Investments. “Our Policy reflects the growing body of evidence showing that companies that integrate consideration of ESG-related business risks and opportunities are more likely to preserve and create long-term value.”

via CPP Investments Sustainable Investing Policy: Update Reinforces ESG Role in Long-Term Value Creation | CPP Investments