The Fonds de solidarité FTQ chose to take its shareholder seat in the companies in which it invests, which means that it intervenes rather than withdraws when they make decisions, and to thereby have the opportunity to influence these choices. And that’s what it does in the vast majority of cases.
However, when exceptional conditions warrant it, the Fonds may decide to exclude from its portfolio the securities of companies that refuse to engage, do not systematically comply with local or international law or use practices that are not consistent with its fundamental values. This is why the Fonds does not invest, for instance, in tobacco or arms companies (companies with 10% or more of gross sales arising from the manufacturing or sale of weapons).
In this annual analysis, the Fonds de solidarité FTQ is also supported and guided by Groupe investissement responsable (GIR), a Montréal-based company. Following the analysis of environmental, social and sound governance (ESG) issues related to each of the securities in its portfolio, GIR proposes to the Fonds some directions to help it make informed decisions, in accordance with internationally accepted socially responsible investment best practices and ESG criteria.
In a study performed from 1998 to 2006, two researchers from New York University and the University of Oxford analyzed the performance of 1,214 companies included in the S&P 500 and Russell 3000 indexes and demonstrated that the “greatest profitability accrues to the companies with the highest commitment to sustainability.”
Source: Network for Business Sustainability, January 2013.