Our investment teams use proprietary fundamental research along with various external data sources to formulate an independent assessment of ESG-related factors. We do not rely on third-party ESG research, and ESG scores from external sources are just one input into our rigorous research process.
“We don’t want to simply exclude companies. As fundamental active managers, we want to be part of the solution by identifying and allocating capital to the companies that are helping to solve society’s challenges.”
— Daniel Yungblut,
Vice President & Head of Research,
Chair of ESG Investment Committee
Where sustainability meets opportunity
At Dynamic Funds, we consider a broad range of Environmental, Social, and Governance (ESG) factors in our fundamental investment processes, where relevant, across our sustainability-focused and traditional mandates. Our active sustainable solutions focus on key ESG-related factors that can help identify companies that are helping the development of a more sustainable economy
What is sustainable investing?
We define sustainable investing as the process of considering relevant ESG-related factors in the investment management process aiming to enhance shareholder value and make a positive contribution to society. Dynamic Active Sustainable Solutions focuses on identifying companies we feel are contributing tangible progress in key sustainability themes.
At Dynamic Funds, it means actively engaging on a wide range of issues with the companies in which we invest, the industry associations to which we belong, and with policymakers, to influence change.
ESG factors considered in our approach
Environmental
- Climate change
- Water and pollution
- Renewable power
Social
- Diversity and inclusion
- Labour standards
- Cybersecurity
Governance
- Board independence
- Shareholder rights
- Bribery and corruption
Why consideration of relevant ESG factors matters
Investment managers have an important role to play in allocating capital for society’s long-term best interests.
Considering ESG factors into the investment process provides a deeper understanding of an investment’s risk profile.
Poor ESG performance can be costly. Major ESG-related controversies continue to erode shareholder value across a wide range of sectors and industries.
How do we incorporate these factors into our investment process?
Part of our success has been the consideration of material ESG factors in our analysis to form a deep understanding of investment opportunities. Where ESG-related factors are relevant, they are considered across our in-depth research, engagement activities, and proxy voting to help deliver on the specific investment objectives of each mandate.
Consideration of ESG Factors
Dynamic believes that engagement is the best way to foster positive change on a range of issues. Regular meetings and direct engagement between our investment professionals and the entities in which they invest provide the opportunity to regularly communicate views and concerns to management, while also fostering a deeper understanding of specific companies and issues.
As active managers, we analyze and push for more regular disclosure from issuers; engaging regularly with management teams creates an environment where that can happen.
Proxy voting is an important part of Dynamic’s best practices for corporate governance, and an essential component of the investment process. As such, we consider ESG factors as part of our long-standing engagement with issuers through proxy voting.
Our formal proxy voting policy ensures that all proxies are voted in a manner consistent with the best interests of our clients.
1832 ESG Investment Committee
Reporting to the 1832 Board of Directors, our ESG Investment Committee meets each month to oversee our ESG-related initiatives and support the consideration of ESG factors in our investment processes.
Members include:
Portfolio Management / Investment Teams
Wider Business Units
Our commitment to ESG
Signatory to the United Nations-supported Principles for Responsible Investment and regularly submits transparency reports to the agency.
Proud founding participant of Climate Engagement Canada, a finance-led initiative that drives dialogue between the financial community and corporate issuers to promote a just transition to a net zero economy.
Proud member of the Canadian Coalition for Good Governance (CCGG) and serves on the group’s Environmental and Social Committee.
Member in good standing of the Responsible Investment Association, Canada’s membership association for responsible investing.
Proud member of CDP, a not-for-profit that runs a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.
ESG factors are not determinative of portfolio holdings unless a fund incorporates ESG considerations into its investment objectives or primary investment strategies (is an ESG Fund). Passively managed funds (such as index trackers) that are not ESG Funds do not consider ESG factors except with respect to proxy voting when it is in the best interests of the fund.