In unprecedented move, Canadian pension funds unite to call for greater ESG standards

In an unprecedented move, some of Canada’s largest institutional investors have banded together to ask companies for more rigorous disclosures of environmental, social and governance factors, an effort they say is meant to promote more sustainable and inclusive economic growth.

A group of eight pension funds, which together manage a total of about $1.6 trillion in assets, called on corporations in a joint statement Wednesday to standardize their disclosures of so-called ESG factors to help them in their investment decision-making and better assess and manage their risks.

“How companies identify and address issues such as diversity and inclusion, human capital, board effectiveness and climate change can significantly contribute to value creation or erosion,” the funds wrote.

The group of eight funds includes global investment heavyweights such as the Canada Pension Plan Investment Board, the Ontario Teachers’ Pension Plan, and the Caisse de Dépot et Placement du Québec.

Richard Leblanc, a

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