Desjardins | Introduction

Leveraging profitable change

The acronym ESG, which stands for environmental, social and governance, includes a set of challenges that companies may face. ESG criteria are used in responsible investment to select the companies which have the best practices in their industry.

Environmental

Biodiversity

Forestry

Climate change

Greenhouse gas (GHG) emissions
Carbon footprint
Green buildings

Water management

Water-related risks
Water footprint
Fracking

Product safety

Genetically modified organisms (GMOs)
Nanotechnology

RecyclingTransparency

governance

Board of directors

Composition
Independence
Shareholder nominations

Executive compensation

Advisory vote
Financial crisis
Severance pay

Shareholder rights

Multiple-voting shares

Political contributionsShareholder rights planSuccession planAbstention campaignSecurity lending

history

End of the XIX^th century and the beginning of the XX^th
The English Quakers refuse to invest in alcohol and weapons.

End of the XIX^th century and the beginning of the XX^th
The English Quakers refuse to invest in alcohol and weapons.
End of the XIX^th century and the beginning of the XX^th
1928, the Pioneer Fund of the American Methodists bans "sin stocks".

End of the XIX^th century and the beginning of the XX^th
1928, the Pioneer Fund of the American Methodists bans "sin stocks".
End of the XIX^th century and the beginning of the XX^th
The first champion of shareholder rights, Lewis D. Gilbert, speaks-up during hundreds of annual meetings of American companies from the year 1933 to the year 1992.

End of the XIX^th century and the beginning of the XX^th
The first champion of shareholder rights, Lewis D. Gilbert, speaks-up during hundreds of annual meetings of American companies from the year 1933 to the year 1992.
Years 1960 to 1970
1956, the creation of the first European RI funds: Aktie Ansvar, the Swedish fund.

Years 1960 to 1970
1956, the creation of the first European RI funds: Aktie Ansvar, the Swedish fund.
Years 1960 to 1970
1971, the first socially motivated “active” shareholders emerge. For example, Saul Alinsky, a world renowned activist and polemicist, buys shares of a bank with the objective to denounce, during the annual shareholders meeting as well as in the media, the fact that it finances slums in Chicago.

Years 1960 to 1970
1971, the first socially motivated “active” shareholders emerge. For example, Saul Alinsky, a world renowned activist and polemicist, buys shares of a bank with the objective to denounce, during the annual shareholders meeting as well as in the media, the fact that it finances slums in Chicago.
Years 1960 to 1970
In the wake of criticism about the apartheid and the war in Vietnam, America's first RI fund, the Pax World Fund (1972), is born. It excludes certain arms, napalm and Agent Orange suppliers of the American army. Suppliers of military equipment to dictatorships, Chili for example, are also excluded.

Years 1960 to 1970
In the wake of criticism about the apartheid and the war in Vietnam, America's first RI fund, the Pax World Fund (1972), is born. It excludes certain arms, napalm and Agent Orange suppliers of the American army. Suppliers of military equipment to dictatorships, Chili for example, are also excluded.
Years 1970 to 1990
1977, Leo Sullivan (priest and director of General Motors) launches 7 global socially responsible principles bearing his name. He supports the demands of religious communities, which contributes to the withdrawal of American companies in South Africa by which also contributed to the fall of apartheid in 1991.

Years 1970 to 1990
1977, Leo Sullivan (priest and director of General Motors) launches 7 global socially responsible principles bearing his name. He supports the demands of religious communities, which contributes to the withdrawal of American companies in South Africa by which also contributed to the fall of apartheid in 1991.
Years 1970 to 1990
1986, the launch of Ethical Funds, the first RI fund in Canada.

Years 1970 to 1990
1986, the launch of Ethical Funds, the first RI fund in Canada.
Years 1970 to 1990
In 1987, the Brundtland Report introduced the term “sustainable development,” defining it as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Years 1970 to 1990
In 1987, the Brundtland Report introduced the term “sustainable development,” defining it as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”
The 1990s
1990, Desjardins launches its Environment Fund, the first ever RI fund in Quebec.

The 1990s
1990, Desjardins launches its Environment Fund, the first ever RI fund in Quebec.
The 1990s
1999, establishment of the Regroupement pour la responsabilité sociale des entreprises (RRSE). Composed mainly of Quebec religious communities, the RRSE begins engaging dialogue with many companies.

The 1990s
1999, establishment of the Regroupement pour la responsabilité sociale des entreprises (RRSE). Composed mainly of Quebec religious communities, the RRSE begins engaging dialogue with many companies.
2000
2005, the Caisse de dépôt et placement du Québec adopts a Policy on Responsible Investing.

2000
2005, the Caisse de dépôt et placement du Québec adopts a Policy on Responsible Investing.
2000
2006, the United Nations launches the Principles for Responsible Investments (UNPRI).These principles counted than 1,250 signatories, from 48 different countries, with 45 billion USD in assets under its management in 2014.

2000
2006, the United Nations launches the Principles for Responsible Investments (UNPRI).These principles counted than 1,250 signatories, from 48 different countries, with 45 billion USD in assets under its management in 2014.
2000
In 2015, 195 countries signed on to the Paris Climate Agreement, which aims to combat climate change and to accelerate and intensify the actions and investments needed for a sustainable low-carbon future.

2000
In 2015, 195 countries signed on to the Paris Climate Agreement, which aims to combat climate change and to accelerate and intensify the actions and investments needed for a sustainable low-carbon future.

RI around the world

Every two years, the Global Sustainable Investment Alliance releases the an overview of responsible investing (RI) around the world. Five regions are covered in the report: Europe, the United States, Canada, Australia/New Zealand and Japan.

The current international market for RI — an investment approach that includes environmental, social, and governance (ESG) criteria in the selection and management of placements and investments — already represented USD 30.7 trillion in the regions covered by the report as of December 31, 2017.

What is Responsible Investing

Leveraging profitable change

Environmental

Environmental

Social

Social

governance

governance

history

End of the XIXth century and the beginning of the XXth

End of the XIXth century and the beginning of the XXth

End of the XIXth century and the beginning of the XXth

End of the XIXth century and the beginning of the XXth

End of the XIXth century and the beginning of the XXth

End of the XIXth century and the beginning of the XXth

Years 1960 to 1970

Years 1960 to 1970

Years 1960 to 1970

Years 1960 to 1970

Years 1960 to 1970

Years 1960 to 1970

Years 1970 to 1990

Years 1970 to 1990

Years 1970 to 1990

Years 1970 to 1990

Years 1970 to 1990

Years 1970 to 1990

The 1990s

The 1990s

The 1990s

The 1990s

2000

2000

2000

2000

2000

2000

RI around the world

Canada

$ 1,699 billion

50.6%

Australia & New Zealand

$ 734 billion

63.2%

USA

$ 11,995 billion

25.7%

Japan

$ 2,180 billion

18.3%

Europe

$ 14,075 billion

48.8%

Environment

What is
Responsible
Investing

End of the XIX^th century and the beginning of the XX^th

End of the XIX^th century and the beginning of the XX^th

End of the XIX^th century and the beginning of the XX^th

End of the XIX^th century and the beginning of the XX^th

End of the XIX^th century and the beginning of the XX^th

End of the XIX^th century and the beginning of the XX^th