The University Pension Plan is promoting responsible labour standards in the direct operations that it invests in, according to a new stewardship report from the investment organization.
It said the investment organization wants to ensure key metrics from the International Labour Organization are being respected in direct operations its involved with. It’s also looking to find risks related to these standards across supply chains.
Read: Canadian pension plans endorse Canadian Coalition for Good Governance stewardship principles
The investment organization plans to incentivize an approach that prioritizes stakeholder experience and long-term company objectives through executive compensation plans. The UPP wants to promote executive pay plans that acknowledge the factors that contribute to long-term real-world value creation.
The report also noted the UPP will use its proxy voting rights to address its expectations with holding companies on governance issues related to inequality. The investment organization now shares its positions and expectations for companies through its proxy voting policy, which is reviewed annually. It’s also looking to leverage its status as a large institutional investor to build awareness among Canadian investors for the systemic implications of inequality to long-term portfolios.
In a press release, Brian Minns, managing director of responsible investing at the UPP, said the investment organization wants to learn more about inequality as it pursues positive outcomes for companies and markets.
“For UPP, creating value and managing risk for our members involves exercising our voice to influence outcomes on key issues such as inequality. It’s crucial for us to understand and do our part to address these issues, consistent with our fiduciary duty as a pension plan.”