Responsible Investing

CAAT believes that sound investment decisions must be informed by environmental, social and governance (ESG) considerations. We see Responsible Investing as key to the long-term strength of the Plan.

CAAT is guided by the core principles of our Responsible Investing Policy: our beliefs, governance, integrating ESG factors into investment processes, and stewardship.

Our commitment to Responsible Investing was formalized in 2007 in the form of our Responsible Investing Policy. This policy is reviewed and updated, as ESG factors are increasingly integrated into the Plan’s investment approach.

Explore the sidebar to the left to find out more about our Responsible Investing Policy, how we define ESG, and how we work with partners to encourage more comprehensive disclosure of ESG risks.

CAAT takes a long-term approach to investing, and part of that approach includes a focus on Responsible Investing. Responsible investing means incorporating environmental, social and governance (ESG) factors into investment decisions.

While ESG factors are often interrelated, they can generally be broken down into the following:

We are committed to incorporating these factors into our investment approach. Explore the sidebar to the left for more on our approach to responsible investing.

CAAT’s commitment to responsible investing was formalized in 2007 in the form of our Responsible Investment Policy.

1. Governance

Responsible investing requires consistent oversight with an eye toward continuous improvement. The Plan's Board of Trustees reviews and updates the Responsible Investing Policy at least every three years. The Board also reviews reporting from the Investment team concerning the Plan's Responsible Investing activities.

Plan staff are responsible for integrating ESG considerations into investment decisions.

2. Integrating ESG factors

CAAT actively collaborates with our external investment partners to ensure that consideration of ESG factors is built into their investment processes. ESG factors are a key consideration in our due diligence process for working with existing and potential managers. We consistently monitor this through an annual survey of our investment partners to evaluate the role ESG considerations play in their portfolio management practices.

CAAT’s approach to ESG involves two primary focus areas: climate change and labour matters. CAAT is committed to implementing the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD), which aim to identify and manage climate change risks and opportunities. CAAT also supports and encourages fair working conditions by supporting the International Labor Organization (ILO) principles addressing collective bargaining rights and the right of workers to be free from discrimination.

3. Stewardship

CAAT maintains diligent stewardship practices within our approach to Responsible Investing, and examines shareholder proposals on ESG issues, carefully considering the possible effects on the long-term shareholder value. This includes using our proxy voting power to ensure that the companies in which we invest are being run in the best interests of our members and in a manner consistent with our Responsible Investing Policy.

CAAT is committed to collaborating with like-minded organizations, investors, regulators and legislators to exchange information and advocate for better transparency and performance on Responsible Investing standards and practices.