TPPC has gradually been integrating ESG factors since 2017. We have developed an ESG Framework and an ESG Roadmap to guide the implementation of our initiatives. In 2022, we adopted our inaugural Responsible Investing Policy and updated our ESG Roadmap to prioritize the short-, medium- and long-term actions of our ESG integration.

Our Board, Investment Committee, and Investment Team regularly participate in education sessions to build knowledge about ESG issues.

We have also engaged Quinn+Partners, an industry-leading sustainability consultancy, to support our ESG integration approach.

Our RI approach is grounded in our ESG Framework, which sets forth four principles that function in an iterative process.

The Plan’s investments are externally managed by various investment management firms. We have adopted an ESG due diligence questionnaire to guide our review of managers’ ESG practices.

During the selection and appointment process, TPPC reviews how managers identify, assess, and manage ESG risks and opportunities for investments in their portfolios. As part of our ongoing monitoring process, we consider how each manager’s approach to RI is developing over time.

We aspire to improve the ESG performance of investee companies. We believe that ongoing dialogue and engagement have a greater impact and are more likely to influence positive change than divestment (selling our investments) or negative screening (excluding certain sectors from our investments).

TPPC’s ongoing communication with our investment managers enables us to understand how they are engaging with their portfolio companies. In addition, TPPC monitors investment managers’ capital stewardship and requires managers to annually report on votes cast at investee companies’ shareholder meetings. For private markets investments, we may participate on fund advisory boards and committees.

We also engage indirectly with investee companies through participation in industry associations, such as the Canadian Coalition for Good Governance (CCGG). We keep up to date on engagement activities conducted by the CCGG, in part, by providing input into their annual manager engagement process.

We engage in continuous learning on ESG trends and best practices. TPPC’s RI approach is also included in staff and Board member onboarding training.

As we engage with our investment managers and stay abreast of emerging trends, our approach to RI will continue to progress.

TPPC has identified four ESG priority areas where we plan to focus our investment process and engagement activities:

• Climate change: How investee companies are measuring their greenhouse gas emissions and setting reduction goals, managing climate risks, and capturing climate change-related opportunities.

• Diversity, equity and inclusion: How investee companies are increasing diversity of their boards and workforces and integrating equitable and inclusive practices into their business.

• Labour practices: How investee companies are advancing fair labour practices and safe workplaces.

• Inequality: How investee companies are contributing to global social and economic equality of members of society.

To have a larger influence in the market and to learn from peers, TPPC is collaborating on RI with other investment industry stakeholders through direct conversations, and association activities.

TPPC is a member of two leading Canadian investor organizations:

• Canadian Coalition for Good Governance (CCGG)
• Pension Investment Association of Canada (PIAC)

TPPC is pleased to join over 40 other institutional investors in endorsing the CCGG Stewardship Principles. As a responsible institutional investor, TPPC recognizes the importance of active stewardship and the integration of environmental, social, and governance (ESG) factors in investment decision-making.

The CCGG Stewardship Principles provide a framework for institutional investors to engage with companies, exercise voting rights, and promote long-term value creation. They emphasize:

• Active Ownership: Engaging with investee companies on ESG matters, including proxy voting and dialogue.

• Disclosure and Transparency: Advocating for transparent reporting on ESG performance and risks.

• Board Effectiveness: Assessing board composition, independence, and governance practices.

• Executive Compensation: Evaluating compensation structures and alignment with long-term performance.

• Risk Oversight: Ensuring robust risk management and oversight by boards.

By endorsing the CCGG Stewardship Principles, TPPC further focuses our attention on:

• Engaging with Companies: Through our external investment managers, actively engaging with the companies in which we are invested, advocating for responsible practices and long-term value creation.

• Transparent Reporting: Enhancing our reporting on ESG integration, proxy voting, and engagement activities.

• Collaboration: Collaborating with other investors, regulators, and stakeholders to promote responsible investing.

“As stewards of our members’ retirement savings, we recognize the importance of responsible investing. Endorsing the CCGG Stewardship Principles aligns with our mission to provide retirement security and outstanding service for our members – today and well into the future.” — Paula McDonald, CEO, TPPC

We welcome any questions you may have on TPPC’s RI activities.

Please contact us by email at memberservices@tppcnl.ca, by phone at 709-793-8772 or toll-free at 1-833-345-8772.