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DECEMBER 4, 2024 | ARCADIAN COURT

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FEATURED SPEAKERS

MARIA FLORES

President Carte Wealth Management Inc.

ERIK WACHMAN Financial Planning Advisor Assante Financial Management Ltd.

FERA JERAJ

Chief Technology Officer Canaccord Genuity Group Inc.

TAMMY BUSS

Family Business Advisor, Certified Financial Planner Desjardins Financial Security Independent Network

MELISSA LEONG

Personal Finance Expert, National Media Personality, Best-selling Author

DIANA ODDI

Director of Marketing, Communications and Practice Management Mandeville Private Client

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02 Editorial Employers can help empower workers

04 Statistics Inflation outpacing salary growth

40 Other life Consultant is pitch perfect

SPECIAL FEATURES

6 Canada Life’s new blood

Meet new VP Kate Nazar

12 Quality service

Co-operators’ Neil Morrison drives sustainable solutions

16 The future of group benefits

Act now to gain long-term benefits, says Canada Life

FEATURES

11 Magnificent difference

Impact investing can help change the world

25 DB plans

Unpacking the economic impact

OPINION

15 ESG goes mainstream

So where do we go from here?

18 New era

The next M&A cycle will be more complex

Plan sponsors can help educate and empower

The word “estate” conjures up many images, from vast acres of land owned by royalty to family dynasties and Downton Abbey.

But what can get lost in translation is that one doesn’t have to own an inordinate number of assets to have an “estate.” Also, and more importantly, the size of one’s estate is not correlated to its importance to the family involved.

Estate planning – the bequest of assets to heirs and the settlement of estate taxes and debts – is of course critical for those with young children, blended families, or those who have a family member with a disability. But even if you don’t fall into these categories, you’ll want to leave a legacy for loved ones or chosen causes or charities. In short, everyone deserves and should have an estate plan. Yet Canada has a problem. Only one-third of the population has one in place, and fewer than half have “general knowledge” of the concept, according to an IG Wealth Management study.

For plan sponsors, the message here is resounding: employees, especially those who don’t realize it, need help

This may sound like another condescending pitch from a retail financial advisor imploring people to sort their lives out or regret it later. But how many folks have been educated on the benefits of financial planning and the negative effects of poor tax planning? And at a time when the cost of living has skyrocketed, most plan members can be forgiven for struggling to think a few months ahead, let alone years and decades.

For plan sponsors, the message here is resounding: employees, especially those who don’t realize it, need help. From basic budgeting to household finances to long-term financial and estate planning, many Canadians are ill-equipped to put the right financial building blocks in place to ensure their family’s well-being.

My attention was alerted recently to Amazon Canada, which offers its more than 48,000-strong workforce free estate planning as part of its benefits package. The much-maligned retail behemoth is not without its faults, and is certainly not the only company out there offering this, but its policy struck a chord.

The potential for improved mental health and peace of mind among employees is sky-high. What better feeling than knowing you are proactively protecting your family’s future? If defined benefits are a thing of the past for most people, maybe the next benefits and pension era will be characterized by employer-led financial well-being and education. If companies can no longer provide the security of a DB plan, they can empower individuals to do it for themselves, no matter how big or small their estate.

James

Burton, managing editor

EDITORIAL

Managing Editor James Burton

Senior Editor

David Kitai

Journalist Josh Welsh

Senior Sponsored Content Writer Manal Ali

Lead Production Editor Roslyn Meredith

Production Editors

Kel Pero, Christina Jelinek

ART & PRODUCTION

Art Director Marla Morelos

Designer Khaye Cortez

Production Coordinator Kat Guzman

Customer Success Coordinator Gail Baes

Vice President, Production Monica Lalisan

SALES & MARKETING

Vice President, Global Sales (Wealth) Abhiram Prabhu

Business Development Manager Doris Holinaty

Account Manager Michael Hughes

CORPORATE

President Tim Duce

Director, People and Culture

Julia Bookallil

Chief Revenue Officer

Dane Taylor

Chief Information Officer

Terry Szames

COO

George Walmsley

CEO Mike Shipley

EDITORIAL ADVISORY BOARD

Celine Chiovitti, OMERS

Katie McNulty, CAAT Pension Plan

Greg Hurst, Greg Hurst & Associates

Robert Weston, Pharos Platform

Kevin Minas, Mawer Investment Management

Mark Newton, Newton HR Law

Jim Helik, James Helik Consulting

Tim Clarke, tc Health Consulting

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WEALTH PROFESSIONAL james.burton@keymedia.com

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INFLATION OUTPACING SALARY GROWTH?

Robert Half’s 2025 Salary Guide shows majority of professionals worry about inflation, and more than half feels they are underpaid.

RETIREMENT SAVINGS IN CANADA

92% of professionals worry about inflation outpacing salary growth

51% feel underpaid

DEMANDS FOR MENTAL HEALTH BENEFITS RISE

GreenShield’s report highlights rising demand for accessible mental health benefits, led by younger workers and marginalized groups likely to change jobs for better support.

32% of hiring managers have increased starting salaries

39% of managers have offered hybrid roles

Source: Robert Half 2025SalaryGuide released in October 2024

Source: GreenShield report, October 2024

20% of Canadians have no savings (one in five)

MAJOR M&A PLANS IN CANADA

KPMG surveys reveal that many Canadian CEOs and SMBs are prioritizing mergers and acquisitions as a key strategy for driving growth, with businesses seeking to expand through significant deals.

MENOPAUSE AFFECTS WORK PRODUCTIVITY

The Menopause Foundation of Canada highlights how unmanaged menopause symptoms lead to lost productivity and income for Canadian women. Employers are urged to implement supportive policies to address this growing issue.

BURNOUT STILL AFFECTS WORKERS

Research shows burnout among Canadian workers has decreased since the pandemic but remains a significant issue, with nearly one-quarter of workers reporting burnout and many experiencing symptoms that could lead to it.

of Canadian CEOs are planning major deals

Source:

Source: HOOPP and Abacus Data, October 2024 Source:

BENEFITS LEADERSHIP

Sponsored by

Meet Canada Life’s new VP, group retirement services

Join us as we welcome the newest member of our team, Kate Nazar

IN SEPTEMBER, Kate Nazar joined Canada Life as vice-president, group retirement services. With over 30 years in the financial services and retirement industry, Kate brings a wealth of knowledge and leadership to drive the vision of helping Canadians achieve their savings goals. Her extensive experience includes business development, client relationship management, investment solutions, product development, marketing strategy, sustainability, and strategic partnerships.

In this newly created role with a holistic focus, Kate is responsible for overseeing strategic initiatives, enhancing customer relationships and ensuring the delivery of innovative wealth solutions to meet the evolving needs of our customers.

Her commitment to the future of the pension industry is matched only by her commitment to making her communities stronger and more resilient. She’s on the board of directors for Unsinkable, a charity supporting people on their mental health journey. Also, as a 21-year survivor of late-stage ovarian cancer, Kate volunteers as a speaker for the Survivor’s Teaching Students program through Ovarian Cancer

Canada. As a seasoned contributor to The A Effect and the Scala Network, she shares her life experiences and lessons learned with openness and great candour to help empower women in leadership. Spending time in nature, making memories with family, and being committed to a daily yoga regiment helps ground her and support her overall well-being.

Canada Life is committed to being a best-in-class integrated provider, and focused leadership in GRS strengthens that. Contact a Canada Life representative to talk about how we’re growing today.

A people-first approach to wealth and well-being

For over 175 years, individuals, families, and business owners across Canada have trusted us to provide sound guidance and deliver on the promises we’ve made. Serving more than one in three Canadians, Canada Life is a leading group savings, benefits, insurance, and wealth management provider focused on improving the financial, physical, and mental well-being of Canadians from coast to coast to coast.

With a mission to put the customer at

the centre of everything we do, we know savings is about more than money – it’s about people. By focusing on the realities of the people we support, we’re able to empower Canadians to take an active role in their financial well-being at every age and in every stage of life.

Connect with Kate on LinkedIn at linkedin. co/in/kate-nazar-105a5611.

CanadaLifeanddesignaretrademarksofTheCanadaLifeAssuranceCompany.

Keep the right staff with the right benefits.

NEW TRENDS SPEARHEAD

BENEVA’S MISSION TO INFORM AND EDUCATE

Éric Trudel, lead of group insurance, sees vast potential in new treatments for mental health, migraines, and ADHD – but controlling expenses remains paramount

EVERY DAY, Canadians struggle, navigating the various challenges that come with the game of life. These include, but certainly aren’t limited to, mental health and ADHD and the growing use of medications to help subside these ailments. Private plans also face pressure from rising drug costs. When all is said and done, there needs to be a shining light to help weather these gruesome storms.

Who better to help Canadians and plan sponsors alike with these challenges than Eric Trudel, executive vice-president and lead of group insurance at Beneva. Beneva aims to change the benefits landscape through an annual newsletter that helps inform their audience of the healthcare trends and provide prospective actionable strategies to address these trends and challenges. For example, Trudel highlights one such trend, as outlined in the newsletter, is the increased use of mental health services.

“For us, as an insurer, this is very good news. There’s now less and less stigma around mental health, and employees are using mental health benefits more than ever,” he says. He explains that traditionally, many health plans offered limited coverage for psychological services, but that is now starting to change rapidly. Trudel notes that many sponsors have moved toward more generous coverage levels, with some

plans offering between $5,000 and $10,000 annually for mental health services.

At Beneva, for example, coverage for non-unionized employees has been expanded to $15,000 per year for psychological services. While the direct impact of these increased benefits on absenteeism and presenteeism is not yet fully measurable, Trudel noted, he’s somewhat optimistic that offering more robust mental health coverage will yield long-term benefits. “We’re beginning to see a

“We all know people with migraines. When you have one, you can’t work. These new drugs could make a big difference,” he asserts, suggesting that plan sponsors should be prepared for the increased costs associated with these treatments.

ADHD medication, particularly for adults, is another growing trend, according to Beneva. Interestingly, Trudel pointed out regional differences in the rate of ADHD prescriptions, with Quebec seeing

“There’s now less stigma around mental health, and employees are using mental health benefits more than ever”

small decrease in short-term and long-term disability incidence rates since 2022, which could be a sign that mental health support is starting to pay off,” he explained.

In addition to mental health, Beneva is witnessing trends in other areas of healthcare. New treatment options for migraines have emerged in the form of highly effective but costly drugs. Trudel acknowledged that while these treatments are expensive, they offer significant potential to reduce absenteeism for people who suffer from migraines.

higher rates of adult ADHD medication use than provinces like Ontario. “We’re seeing more adults in Quebec being prescribed ADHD medication than children, which is quite different from what we’re seeing in Ontario,” he said.

“Quebec is similar to Nova Scotia and the Atlantic provinces, but Ontario ranks lower, and that’s something we want to dig into to understand. Is it because of a stigma? Is it because Quebec is too high [in its level of ADHD medication use] and maybe prescribes a little bit too much? We

Name: Éric Trudel

Company: Beneva

Title: EVP and lead of group insurance

Age: 54

Years in the industry:32

Education: Bachelor’s degree in actuarial sciences from Université Laval

What motivates you?

Working with my team and working to help people. Group insurance is a great tool for employers and unions to make sure that employees can concentrate on their work

What film or book recently made an impact on you?

Esprit d’équipe [Team Spirit] by Sébastien Sasseville

How do you define success?

Having fun and working together to reach the top and reach the goal

INDUSTRY ICON

don’t have a clear answer on that, but we’ll certainly follow that trend.”

One of the most pressing challenges facing health plans is the rising cost of pharmaceuticals, particularly high-cost drugs for rare diseases. Beneva, like many other insurers, has seen drug costs skyrocket as new treatments enter the market. These drugs, while often life-changing for patients, place significant financial pressure on private health plans. He points to an example of a new drug in the US priced at $3.5 million per year, significantly higher than the $2 million maximum seen so far in Canada. These treatments, which he expects will soon gain Health Canada approval,

well to the biosimilar.

Trudel underscores the importance of finding a balance between providing comprehensive health benefits and managing the costs of these benefits. One example he cites was the coverage of antiobesity drugs like Wegovy, which have become more popular in recent years due to their effectiveness and reduced side effects compared to older treatments.

“When Ozempic came into the market two years ago, at the beginning, it was a blurred line because it was like an antidiabetic. It was approved by Health Canada for diabetes, but it was prescribed, I would say, off label for people fighting obesity,”

“We all know people with migraines. When you have one, you can’t work. These new drugs could make a big difference”

will continue to challenge plan sponsors to balance cost and coverage.

To manage these rising costs, Beneva has adopted a multifaceted strategy. The company employs tools like step therapy, prior authorization, and product listing agreements (PLAs) to minimize the financial impact on their clients. “We have a pharma team of 15 people who manage that effectively, including pharmacists, technicians, and nurses,” he explains. “They work together to ensure that we’re managing drug costs as effectively as possible.”

He emphasizes the importance of these strategies in controlling expenses, particularly when it comes to managing high-cost drugs, which includes the use of biosimilar drugs. Beneva has a strategy of mandating the use of biosimilar drugs when they are available to manage the costs of high-cost biologic drugs. Trudel notes this approach works for 98 percent of patients, with only two percent possibly not reacting

he remarks. “Plans were not clear at the beginning. At Beneva, we decided we would make it clear.”

That’s why he says they offer a regular plan with an option to opt into or add antiobesity coverage to the plan, along with the cost and what it covers. “That triggers very good discussion with plan sponsors because it’s now more like a philosophical view,” he says. However, he also asserts that plan sponsors must also consider financial implications, as adding new coverage areas often requires adjusting other benefits to stay within budget.

Looking to the future, Trudel anticipates that the challenges surrounding high-cost drugs and disability management will continue to dominate discussions in the group benefits space. However, he remains cautiously optimistic about the potential for hybrid work arrangements, which, in turn, could reduce disability incidence rates, especially for white-collar workers.

Quebec City: Headquarters

2020: La Capitale and SSQ Insurance merged into Beneva

2023: Founded – with history dating back to 1941

billion: Assets 3.5 million+: Members and clients

Employees from coast to coast

QUICK FACTS ON BENEVA

Can you ignore the magnificent seven and deliver returns?

Head

of impact equities

makes

a case for an impact assessment offering some correlation to returns potential

THE FRANKLIN Martin Currie Improving Society Fund does not own any of the magnificent seven. The fund has a dual objective: generate real-world change and deliver longterm investment returns. The magnificent seven – Amazon, Tesla, Microsoft, Meta, Nvidia, Alphabet, and Apple – could all be argued to meet both objectives. Lauran Halpin explains, however, that none of those companies is close enough to their eventual impact to qualify for this fund.

Halpin is head of impact equities at Martin Currie, a Franklin Templeton company. Her fund looks for companies whose positive impacts on society are immediately measurable, rather than open to interpretation. She highlighted how her fund determines what a company’s positive impact is and how they achieve that stated dual objective. She argued, too, for an understanding of impact investing as an overlay that can actually contribute to returns.

“When you are looking for companies that are changing the world ... they often have leading market shares and really interesting opportunities for long-duration growth,” Halpin says. “Those companies are changing the world, and we believe that they have the opportunity to grow their impact over time. By growing that impact, hopefully that means growth in top-line margin, and all that feeds through to the opportunity to generate alpha in their share price.”

Explaining the measurability of positive impact, Halpin contrasted the companies in the magnificent seven with Intuitive Surgical, which develops robotics that assist in surgeries.

It’s the market leader for robotic-assisted surgery, and the delivery of its units to hospitals can be directly tied to better surgical outcomes and more efficient healthcare service. The positive impact of a company like Intuitive Surgical is immediately measurable and far less open to debate than an Nvidia or Meta might be.

Halpin accepts that by avoiding the magnificent seven over the past few years, her fund has missed out on some returns. She emphasizes,

changes allows for a broadly agreed-upon sense of positive impact, without forcing the fund to become thematic. Halpin notes that the portfolio is certainly not debate-free, and that she welcomes asset managers sharing their views on the impact any one particular company can have.

Halpin is aware, too, that when looking at an innovative company there are chances its innovations may have less of a positive impact than intended. They may even have a negative social impact. Halpin treats that as a form of risk, one that she and her team mitigate by assessing governance and sustainability factors as well as any externalities or internal dynamics that could cause conflicts in the future. She argues that assessing the risks of these more negative uses can also help protect investors at the bottom line, as a potential major negative development could hurt a company’s financial performance.

Halpin believes there may be a case for assessing impact funds. She believes impact can be a useful assessment tool that helps institutions identify innovative leaders and poten-

“We want our clients to judge us on both the alpha and how we are at identifying companies with the opportunity to grow that cone of impact” Lauran Halpin, Martin Currie

though, that at a certain period returns were so narrow that almost any equity investor was punished for being in anything other than Nvidia. However, she emphasizes the time horizon view that Martin Currie takes. Both stock value and positive impact can take a long time to play out. She believes, however, that a longer-term approach that integrates positive impact in a dual mandate on par with investment returns can drive value.

The Improving Societies Fund chooses three criteria that Halpin believes most investors would agree on as positive change: improving well-being, improving inclusion, and supporting a just transition. The idea of investing in companies that help people be healthy, actualize economically, and face big

tial returns drivers in the long-term.

“I think there has been a little bit of a danger with some of the more traditional ESG-type funds that their reason for being can sometimes be a little bit murky and their outcomes, aside of alpha, can tend to be poorly constructed, or at least poorly communicated,” Halpin says.

“One of the things that I think is so interesting about impact is this focus on materiality and reporting of the outcomes, aside from alpha that we’re trying to generate.… You will be able to see how that dual objective is working. We want our clients to judge us on both the alpha and how we are at identifying companies with the opportunity to grow that cone of impact. We think that it takes the sustainable investing conversation a step forward.”

How Neil Morrison drives sustainable solutions at Co-operators

Neil Morrison balances the demands of advisors and plan sponsors to deliver sustainable, integrated solutions in the face of rising benefit costs

FOR PLAN sponsors, the balancing act is real: it’s not easy to offer comprehensive benefits while keeping rising costs in check. But let’s be clear – the challenge isn’t cost alone; it’s the sustainability of quality coverage that truly hangs in the balance. Rising costs threaten to chip away at these inclusive benefits, and tackling this requires a team effort. All parties –insurers, advisors, plan sponsors, and plan members – working together can manage the challenge, without anyone shouldering the load solo. While navigating cost concerns remains a constant pressure, what separates Co-operators is how they approach the challenge.

Neil Morrison, vice president of group markets distribution, leads with a distinctive focus on balancing cost management with delivering sustainable, high-quality benefits solutions. His leadership style emphasizes providing insight and proactive strategies that ensure comprehensive coverage remains accessible, despite the financial headwinds all insurers face.

Morrison’s approach isn’t just about cost containment – it’s about building long-term,

value-driven partnerships with advisors and plan sponsors by fostering multi-level relationships and aligning Co-operators’ solutions with client needs.

In conversation with Benefits and Pensions Monitor , Morrison unpacks his approach to group benefits, highlighting key strategies that blend innovation with meeting client needs. It’s a nuanced

Leadership strategies that rise above cost pressures

In an industry where cost is often the focal point, Morrison’s strategy revolves around developing partnerships with advisors and plan sponsors that prioritize long-term value over short-term savings. By focusing on enhancing sales and account management capabilities, his teams work to address both cost challenges and

“We work with advisors who see the value in what we offer—those who aren’t just selling on price, but on the quality of service”

Neil Morrison Co-operators

process – one that requires aligning both advisor and plan sponsor expectations.

With decades of experience across industry giants like Sun Life, Equitable, and Medavie Blue Cross , Morrison now leads a multifaceted team at Co-operators, with a sharp focus on sustainable strategies.

the broader needs of their clients.

This rising cost pressure stems from two main factors: the increasing claims driven by Canada’s general health trends and the advent of more expensive treatments. Morrison points to the surge in chronic conditions like type 2 diabetes and the higher price tags associated

BENEFITS

with newer drugs such as Ozempic as prime examples of cost drivers. “No employer can keep paying for benefit inflation that’s greater than wage inflation. It’s just too much pressure,” Morrison remarks.

Mental health-related claims are another contributor to rising costs. The prevalence of claims related to conditions like anxiety and depression is increasing, and this not only affects healthcare budgets but also reduces workplace productivity. “Mental health claims contribute to both healthcare and disability costs,” Morrison explains. “These are complex claims that affect more than just the healthcare budget – they also affect the overall well-being of the workforce.”

One of the structural challenges Morrison identifies is that the current system is reactive. “We’re stuck in an indemnity-based system,” he says. “We pay claims after they occur, but we’re not focused enough on preventing these issues in the first place.”

Partnering for success: advisors and plan sponsors

Navigating this challenge isn’t just about controlling costs; it’s about balancing the needs of both advisors and plan sponsors. By focusing on developing strong sales and account management skills, Morrison’s teams can navigate the dual-client dynamic of advisors and plan sponsors. Co-operators works through advisor networks, and Morrison is clear that the real trick is fostering relationships that align with the company’s value of high-end service. “We work with advisors who see the value in what we offer – those who aren’t just selling on price, but on the quality of service,” Morrison notes.

Yet there’s another layer to consider: the plan sponsor, the one who ultimately pays the bill. Morrison’s strategy centers on understanding the dual role Co-operators plays –

meeting the needs of both advisors and the end buyers. “We’re essentially selling to two people: the advisor and the plan sponsor. The key is addressing the expectations of both and delivering solutions that work for everyone involved.”

One of the greatest opportunities in the current market is in joint solutions that integrate group benefits with group retirement services. This bundled approach not only streamlines the process for plan sponsors but also presents cost efficiencies that can help alleviate some of the financial pressure employers face.

“There’s a growing demand for joint platforms and single sign-on solutions,” Morrison explains. “Employers are looking for ways to simplify administration and offer more choice to employees without driving up costs.” For Co-operators, the focus has been on digital solutions that reduce the administrative burden on plan sponsors while giving employees easier access to voluntary programs. “No one wants to deal with archaic processes anymore,” Morrison adds. “We’re offering platforms that allow employees to enroll in programs digitally, with as little friction as possible.”

Employers are no longer just looking for standalone solutions; they want platforms that seamlessly connect benefits and retirement services, offering a streamlined, user-friendly experience for both employees and administrators.

There has been a significant shift in the sophistication of clients over the years. Today’s buyers are more informed and expect more nuanced solutions than they once did. Morrison explains, “In the past, HR or finance departments might have made benefits decisions, but today, procurement departments are often involved, which introduces a new layer of complexity.” The challenge is in balancing

all these priorities and ensuring that all the right buttons are pushed.

Fostering growth through coaching and experience

The shift in client sophistication has reshaped Morrison’s sales leadership philosophy. “One of the things I coach with my people is the need to be insightful and to help clients avoid landmines,” he says. “We’re no longer walking product-brochures – clients have access to information online and are 70 percent through their purchase decision before even reaching out to a salesperson. Our job is to be the advisor to the advisor, helping them make the best decisions for their clients.”

Morrison’s leadership style is deeply influenced by his belief in people development. A pivotal experience in his career was a work rotation, where he transitioned from sales leadership to underwriting and claims administration. “That rotation was transformative,” Morrison explains. “It gave me a new perspective on the business, and it’s why I’m a big believer in work rotations – they allow you to see things from a different angle and develop skills outside your comfort zone.”

This hands-on experience has shaped Morrison’s approach to coaching and talent development. “The best advice I ever received was to hire capable, coachable people and develop them,” he says, and that’s a formula that’s worked, especially as the landscape continues to shift.

By focusing on sustainability, comprehensive coverage, and proactive care, Morrison and his team at Co-operators are well-equipped to help clients navigate the challenges of rising costs while ensuring that benefits remain a valuable part of their compensation strategy.

“DiscoveryCo-operators’groupbenefitssolutionshere: cooperators.ca/advisor-resources/group-benefits

Navigating ESG’s evolution

ESG

has hit the mainstream, but what happens next is crucial

ESG MAY have become mainstream, but along with that progress has come extraordinary scrutiny.

The good news is that the perception of ESG factors being fluffy and irrelevant is decades out of date. Asset owners are now aware of the influence their capital has in the real world, and they’re more vocal about the values they expect to apply to their portfolios.

If only that were the end of the story.

A great divide

Debate has simmered over the role companies and investors should have in tackling social and environmental agendas. Much of the challenge has been politically motivated, but there are legitimate questions.

For example, opinion is divided over whether asset managers should screen out fossil fuel companies or champion a climate-change agenda. Some believe this is beyond their brief.

We have also seen plenty of greenwashing, where firms make unsubstantiated eco-friendly claims, and even “greenhushing” – failure to disclose ESG integration in the investment process.

There’s little sign of rifts healing, and ESG now offers a very real complication for the asset management industry: we cannot be all things to all people.

A regulatory and political tangle

A patchwork of regulation is emerging as rule-makers in different regions attempt to promote, prevent, control, and clarify ESG claims and products.

I worry about the mixed motivations and immaturity of regulation. Pursuing an ideological agenda via finance without a well-estab-

lished regulatory regime seems ill-fated.

Meanwhile, geopolitical stability is badly fractured. For example, Russia’s invasion of Ukraine has led to a rally in traditional oil and gas stocks – a real poke in the eye for growth managers who see long-term challenges for these companies’ business models. Post-Paris, were we mistaken to think the world would wean itself off fossil fuels?

It seems ESG is pushing capital markets to their limits. Corporates feel overburdened by the expectation that they should represent all stakeholders. Institutional shareholders are expected to invest one way, while the markets still operate in the pre-Paris paradigm.

So where are we with ESG? Is it working? Is it over?

Growing pains,

not death throes

My view is that these are growing pains, not death throes. During my career, I have seen two major shifts that I think underpin real change – the first social, the second environmental.

The first was the global financial crisis, when we saw that banking executives could not reap vast rewards with flagrant disregard for society at large – since society at large had to pick up the cheque.

Ten years after the crisis, the Business Roundtable “redefined” the purpose of a corporation, saying it must act on behalf of all stakeholders, not merely grow earnings. To succeed, companies need support from the communities they affect and the wider public.

The second shift is climate change. Scientific evidence shows the planet is warming due to emissions. The consequences of this for businesses may be profound.

The key is balancing this with return expect-

ations, and investing in companies that can capture the opportunity, from battery makers to drought-resistant seed manufacturers. Investors should also factor in the significant headwinds companies may face if they don’t move with the times.

Doing what we say, saying what we do Our industry exists to deliver returns. That is a social good in itself. But as investors, we also have a responsibility to support society more broadly. I view these elements as complementary, and draw four conclusions.

First, we must remain focused on opportunities for our clients. Second, investors should aim for meaningful engagements with the companies they hold. Third, we should focus on tangible outcomes rather than getting lost in the weeds. ESG is in danger of becoming an industry of box-ticking. We should favour thoughtful analysis over trivial data. Finally, we must inject some much-needed honesty into this debate. Investors can’t impose a particular ideology, but we shouldn’t shy away from transparently addressing ESG topics with companies when they are a material investment factor.

ESG is complex and still finding its feet. At times, it will challenge the status quo. We should be excited – there’s a huge opportunity to invest in enterprises that can both solve society’s problems and succeed financially.

Catherine Flockhart is a partner and head of ESG at Baillie Gifford. She oversees the firm’s ESG function, encompassing research, stewardship, voting, operations, and communication.

The future of benefits

“The best time to plant a tree was 30 years ago. The second-best time to plant a tree is now.” Taking timely action today can yield long-term benefits for tomorrow

WHEN IT comes to group benefits plans, if we make changes now, what would people’s health look like in three decades?

There are many things that are fundamentally different today about our work and workforces – the nature of our work, technology, new industries – but what’s most strikingly different about the Canadian workforce is the people in it.

Today, members come from more diverse backgrounds, have a wider range of ages, and have evolving well-being concerns.

How the workforce is changing

1. More members were born outside of Canada

Just over 30 years ago, in 1991, immigrants represented 16 percent of Canada’s population. That number was almost unchanged from 1951. But in the most recent census in 2021, that number had grown to 23%.1

What does this mean?

• Today, almost a quarter of Canadians’ first language is something other than English or French.2 Plan information, instructions, and other details need to be easy to understand.

• The family’s primary decision-maker may not actually be the member. We know many people include another family member when they’re making choices about their benefits. Making information accessible so members can go through it at home is important.

• The type of healthcare that will help immigrants to Canada may include culturally rooted therapies and holistic healing traditions. A way to make this accessible in your plan may include a healthy living account.

2. The workforce is older

There are more people aged 55 to 64 (3.4 million) than there are aged 15 to 24 (2.5 million).3 Plus, people are working longer. Current Canada census data shows that over one million people 65 and older are still working.4

What does this mean?

• As members get older, they may have a greater need for prescription medication and specialized healthcare requirements.

• There’s a need for education about healthcare needs and coverage after retirement. Sponsors can help make sure members know there’s an option to purchase coverage from their current carrier.

• As Canadians are living longer, we need to help people know how they can maintain their good health as they age and reduce or prevent health decline. Resources and services that promote proactive health and early intervention can reduce the risk of severe health issues and associated costs later in life.

3. Well-being concerns are different Members today have different wellbeing concerns. In 2022, there was a 25 percent increase in the incidence

How to change group benefits plans to adapt to the changing workforce

Sponsors can use different methods to get to know who’s in their plan so they can make smart decisions about that plan into the future.

Understand your workforce

To make informed decisions about group benefits plans, it’s crucial to understand the workforce. Conduct surveys, ask for feedback, and import data into dashboards to help gather valuable information. This data can be used to tailor group benefits plans to meet the specific needs of members. For example, health risk assessments can reveal health risks and behaviors, helping to promote preventative health measures and detect health conditions earlier.

Create a sustainable benefits plan

Sustainability doesn’t have to mean cutting benefits. It involves promoting well-being programming, personalization, and flexibility. Encourage members to participate in decision-making and how they use their plan to help manage costs. Modernizing benefits plans with cost containment features like enhanced generic substitution and smart formularies can also contribute to sustainability. As we look to the future of group benefits plans, they must evolve to meet

When it comes to group benefits plans, if we made changes now, what would people’s health look like in three decades?

Enhance

existing plan features

Modernizing benefits plans involves more than just adding new features. It requires a balance between modernization and sustainability. Well-being programming can support a healthy workforce and stabilize benefit costs by targeting preventative care, healthcare system navigation, and financial literacy. Tailoring content, solutions, and experiences to individual needs can improve engagement and outcomes.

Find new solutions for a new way of working

Meeting members where they are and providing flexible access to care is essential. Virtual healthcare can reduce wait times, provide convenient access to healthcare providers, and offer anonymity and comfort. Personalized care, such as using DNA results to identify effective medications, can improve treatment outcomes and minimize side effects. Additionally, offering new benefits like family-building solutions can support members’ diverse needs.

the changing needs of the workforce. By understanding the diverse backgrounds, ages, and well-being concerns of members, group benefits plans can be tailored to provide meaningful support. Crucial changes today will benefit members well into the future.

Sources:

1.GovernmentofCanada,S.C.(2022,October26).Immigrantsmakeupthelargest shareofthepopulationinover150yearsandcontinuetoshapewhoweareas Canadians.TheDaily-.https://www150.statcan.gc.ca/n1/daily-quotidien/221026/ dq221026a-eng.htm

2.Heritage,C.(2024,August14).GovernmentofCanada.Canada.ca.Statisticson officiallanguagesinCanada-Canada.ca

3.Zimonjic,P.(2022,April28).Canada’sworking-agepopulationisolderthanever, StatsCansays|CBCNews.CBCnews.Canada’sworking-agepopulationisolderthan ever,StatsCansays|CBCNews

4.GovernmentofCanada,StatisticsCanada.(2023,November15).Labourforce statusbyageandgender:Canada,provincesandterritories,censusdivisionsand censussubdivisions.Labourforcestatusbyageandgender:Canada,provincesand territories,censusdivisionsandcensussubdivisions(statcan.gc.ca)

5.Canadianchronicdiseasesurveillancesystem(CCDSS).HealthInfobase.(n.d.). CanadianChronicDiseaseSurveillanceSystem(CCDSS)(canada.ca)

6.GovernmentofCanada,StatisticsCanada(2024,March4).Anoverviewofweight andheightmeasurementsonWorldObesityDay.https://www.statcan.gc.ca/o1/en/ plus/5742-overview-weight-and-height-measurements-world-obesity-day

7.CanadaPublicHealthAgency(2023,August24).TrackingHealthThroughDaily MovementBehaviour:Datablog.Canada.ca.https://health-infobase.canada.ca/ datalab/pass-blog.html

PENSION FUNDS

Get ready for a new era of deal-making

The next M&A cycle will be more complex. Here’s why ...

THERE’S

SOME good news for pension funds that hold private equity investments: After a three-year long slumber, falling interest rates, easing inflation, and about US$3.9 trillion of private capital sitting on the sidelines, Canada’s M&A market is set to reignite. However, the market is going to look very different from before.

If the last burst of M&A activity was driven by buyers bidding more aggressively due to the lower cost of capital, this market will be led by agility, heightened intentionality, and more intense due diligence aided by technology.

Buyers armed with more advanced tools and techniques will be able to be more selective about their targets. Pension funds with assets to sell, hoping to attract competitive bids, will not only have to meet these higher expectations but exceed them – or risk being left behind.

A recent KPMG in Canada survey showed four in five mid-sized organizations are planning to acquire or be acquired over the next three years. But nearly 80 percent say the M&A landscape is far more complex than five years ago, thanks to new and evolving technology, data, privacy, and environmental, social, and governance (ESG) considerations.

Buyers with a strong grasp of these dynamics will make the most significant deals. They’ll be looking for digitally mature companies with ESG strategies in addition to strong fundamentals. As

deal competition intensifies, buyers will conduct deeper due diligence, but they’ll need to do it more quickly and efficiently. Data and analytics, and tools like generative artificial intelligence, will become table stakes to accelerate that process. Sellers hoping to attract the best offer will need to improve operational performance and demonstrate a path to value creation. In addition to solid company fundamentals, sellers will need to focus on the following.

Generative AI

Businesses that have successfully implemented generative AI will have a competitive advantage, and they’ll attract higher valuations as a result. KPMG’s survey showed 83 percent of organizations believe integrating generative AI into their operations would make them more valuable to prospective buyers. Sellers will need to demonstrate clearly how generative AI is bringing value to their organization.

Digital maturity

Companies with an established level of digital maturity will garner higher valuations in the next wave of M&A. For sellers, this means using data insights to improve performance and having the right tools and systems in place to automate certain tasks and processes. Sellers will also need to demonstrate an appetite for and culture of digital innovation – a critical component

in deriving more value from a deal.

Tax implications

Tax considerations and efficiency across the deal structure continue to be critical. For instance, a share sale might allow a seller to benefit from the Lifetime Capital Gains Exemption or avoiding additional taxes on the sale of assets and double taxation on the post-sale proceeds. Buyers, on the other hand, often prefer asset acquisitions due to the higher tax shield from a step-up in the fair market value of the acquired assets. Increasingly, the global minimum tax rate of 15 percent could factor into the sale of large multinational corporations. Complex cross-border rules could expose companies to a top-up tax if their effective tax rate falls below the global minimum.

Sustainability

In today’s environment, ESG considerations can make or break a deal. Buyers with ESG expertise will want to know how challenges like carbon reduction could affect a target’s operations and financial results. Sellers will need to craft a strong ESG strategy, stay current on evolving regulations, assess risks and opportunities, and effectively communicate and show progress if they want an acquirer to grow their business.

As the pace of M&A accelerates, pension managers will need to modernize their approaches. With more use of data and AI, buyers will want richer discussions when considering a transaction. Sellers will need to go to greater lengths to prove their longterm value and arm themselves with data and insights that tell their story. The result will be a more vibrant, innovative, and competitive M&A landscape.

John Cho is a partner and national leader of KPMG in Canada’s deal advisory practice and Johanna Gerrie is a partner and national leader of the firm’s M&A tax practice in Canada.

2024 BENEFIT PROVIDERS Top

Canada’s top benefit providers fuel employee satisfaction and business growth by tailoring their offerings to meet workers’

MEETING EMPLOYEES’ HIGH DEMANDS

IF THE past five years are any indication, employee benefits in Canada have emerged as a decisive strategic advantage to achieving business goals, from growth and expansion to attracting and retaining top talent. The best benefit providers nationwide stand out as industry leaders and trusted partners charting the way forward in plan sponsor and employee service, with practical and easyto-use solutions that deliver value to clients of all sizes.

Traditionally, Canada’s benefits experience has been focused on processing claims and reimbursements after an event. There was little support or interplay on the connection

between physical, mental, and financial health.

Employees and employers are now seeking precisely that, explains Kandy Cantwell, Montridge Advisory Group managing partner and employee benefits expert. Today’s workforce better understands and vocalizes the need for support in managing, sourcing, and sustaining these three areas, and the best benefit providers can play a role in this experience.

“I see two changes, and I hope they’re not trends: we need to help Canadians more easily access and navigate the healthcare system, and we need to find more ways to grow financial literacy beyond employ-

er-sponsored retirement plans,” she says.

“Too many small and mid-sized employers don’t offer such plans, but their employees still need financial tools.”

According to a 2024 Robert Half study, a five-year comparison of employer benefits and perks highlights:

• growth in traditional benefits such as paid time off (PTO) and retirement plans

• significant increase in employee assistance programs (EAPs)

• flexible work, employee discounts, and PTO for volunteering have increased dramatically

• slight decline in dental and extended health coverag

“We’re able to bring our expertise and a wide range of offerings to the table to allow employers to use their benefit plan as a tool to help them reach their goals”

Rob Crowder, The Benefits Trust

AND NOW: HOW EMPLOYER PERKS HAVE CHANGED IN THE LAST FIVE YEARS

METHODOLOGY

In June 2024, Benefits and Pensions Monitor opened the window to nominations for the Top Benefit Providers, inviting service providers across Canada to put forward their companies for consideration.

The awards spotlight the providers delivering the most effective and transformative solutions across areas such as technology, consulting, financial planning, and other services.

A PEEK INTO GROUP BENEFITS IN FIVE TO 10 YEARS

Source:RobertHalfBenefitsandPerks2024CanadaSalaryGuide

Wellness marketplace

Flexibility is paramount. Plan designs use fitness tracking and behavioural data to drive relationships between wellness and lifestyle brands and plan members.

Low-cost landscape

Industry consolidation accelerates as carriers invest heavily in technology and automation to create efficiency. Innovation is stifled as total affordability and plan cost become chief focal points. Data utopia

Governments welcome private industry into health care. Data is openly shared and sophisticated analytics capabilities allow leading carriers to provide leading-edge healthcare services and offerings.

Source:Deloitte,“TheuncertainfutureofgroupbenefitsinCanada:HowshiftsinhealthcareareaffectingCanada’slifeandhealthinsurers”

The editorial and research teams reviewed the vendors’ submissions, and nominees were evaluated mainly on the strength and process of their service delivery, with the most important factor being how these providers made benefits, pensions, and institutional investment professionals’ lives more efficient through their products and services.

In the process of selecting the best providers for 2024, the BPM team also conducted one-on-one interviews with benefits and pensions professionals and surveyed hundreds more within BPM’s network to gain a keen understanding of what these professionals think about current market offerings. A total of 15 organizations stood out based on these criteria, becoming the 2024 winners of the BPM Top Benefit Providers Awards.

Industry insiders note that employee expectations shifted during the pandemic years, exacerbated by the challenges in accessing basic public health services.

This experience elevated how employer-provided benefits and private insurance complemented the public systems and heightened employee expectations for services such as telemedicine and mental health support, says Daniel Drolet, senior partner of group benefits at Normandin Beaudry.

“Expectations from the workforce are higher than ever and were not driven but emphasized by the pandemic due to a

TOP BENEFIT PROVIDERS 2024

THE TOP BENEFITS WORKERS WANT

WORKPLACE BENEFIT TRENDS BY GENERATION IN 2024

lack of accessibility for doctors, dentists, and possibly treatments,” he explains. “Employees expect flexibility, and they’re demanding to make their own choices.”

Dimitri Poliak, Normandin Beaudry’s savings principal, agrees the pandemic was illuminating.

“Canadians are louder than ever about the values that matter most to them and what they value from an employer,” he adds. “Connecting the dots between business objectives and employee values is an important business strategy to take on, and benefit providers have a role to play because unless they understand what employees value, they can’t expect them to appreciate what’s being offered.”

Drolet adds, “Financial pressure on organizations and rising costs affected many aspects of life, including benefits and salaries. Employers face that increase and have hard decisions to make because sometimes that flexibility increases the cost.”

A Deloitte report sounds the alarm for Canada’s uncertain future in group benefits, emphasizing that group benefit providers must adapt to the increasingly data-driven healthcare world.

While new technology and personalized care offer great potential, many insurers may miss out due to a lack of investment and readiness. The study urges insurers to focus on strategic planning and innovation to remain competitive.

The BPM team evaluated vendor entries to identify the best benefit providers focused on supplying the most effective technology, consulting, and financial planning solutions. They also assessed how these providers improved efficiency in the benefits, pensions, and institutional investment space.

After interviewing industry professionals and surveying hundreds about current market offerings, 15 organizations were named the BPM Top Benefit Providers of 2024.

Gen X Overall Gen Z Millenials Baby Boomer

1. Health and dental benefits: Approximately 85% of Canadian employers offer health and dental benefits to their employees.

2. Extended health coverage: Around 90% of employees with benefits have extended health care coverage, which includes prescription drugs, vision care, and paramedical services.

3. Mental health support: Over 60% of Canadian employers provide some form of mental health support, such as employee assistance programs (EAPs).

4. Retirement savings plans: Nearly 70% of Canadian employers offer retirement savings plans, including group registered retirement savings plans (RRSPs) and defined contribution pension plans (DCPPs).

5. Paid time off: On average, Canadian employees receive about 20 days of paid time off annually, including vacation days and statutory holidays.

6. Disability insurance: Approximately 75% of Canadian employers provide short-term and longterm disability insurance as part of their benefits package.

7. Flexible benefit plans: Around 30% of employers offer flexible benefits plans, allowing employees to choose the benefits that best meet their needs.

8. Wellness programs: About 50% of Canadian companies have implemented wellness programs to promote employee health and well-being.

9. Employee recognition programs: Close to 65% of Canadian businesses have employee recognition programs in place to acknowledge and reward employee achievements and contributions.

10. Cost of benefits: Employee benefits typically account for 15%–20% of total compensation costs for Canadian employers.

11. Life insurance: Around 85% of Canadian employers offer life insurance coverage to their employees, often equal to one or two times the employee’s annual salary.

12. Critical illness insurance: Approximately 40% of employers provide critical illness insurance, offering financial protection in the event of serious illnesses.

13. Healthcare spending accounts (HSAs): About 25% of Canadian employers offer Healthcare Spending Accounts, allowing employees to use pre-tax dollars for medical expenses not covered by traditional health plans.

14. Telemedicine services: Over 50% of employers provide access to telemedicine services, enabling employees to consult with healthcare professionals remotely.

15. Parental leave top-up: Nearly 35% of employers offer parental leave top-up benefits, supplementing the government-provided benefits to support new parents.

16. Flexible work arrangements: Around 60% of Canadian employers offer flexible work arrangements, such as remote work options and flexible hours.

17. Education and training reimbursement: Approximately 45% of employers provide financial assistance for education and training programs to support employee development and career growth.

18. Transportation benefits: About 20% of employers offer transportation benefits, including public transit subsidies and parking allowances.

19. Employee stock purchase plans (ESPPs): Nearly 30% of Canadian companies provide employee stock purchase plans, allowing employees to purchase company stock at a discounted rate.

20. Financial Wellness Programs: Around 35% of employers offer financial wellness programs, providing resources and support to help employees manage their finances effectively.

These additional statistics further demonstrate the diverse range of benefits offered by Canadian employers to enhance employee satisfaction and retention.

Source:Benefluent,“Canada’sEmployeeBenefitsIndustry:Size,Share,andGrowth”(2024)

Canada’s top benefit providers excel with a service-first philosophy

The Benefits Trust

The full-service third-party administrator continues its recognition streak with a Top Service Provider Award after being named to BPM’s Top Employer list in September 2024.

“We view benefits plans as a promise between an employer and a group of employees,” president Rob Crowder says. “We allow employers to completely customize their approach to providing benefits. All we do is keep the promises that employers make to their employees regarding their benefits. We accommodate whatever the employer wants to promise through plan design, communication, execution, and ongoing service. It’s a completely customized approach, so employers can offer whatever benefits they want.”

Customized

and hybrid

benefits

plans are gaining in popularity

For three decades, The Benefits Trust, with its advisor partners, has provided customized employee benefit solutions for small and mid-sized businesses with up to 1,000 employees across Canada. Its comprehensive packages, including healthcare spending accounts, executive plans, and the increasingly popular hybrid benefit plan, align with an employer’s compensation philosophy, budget, and strategic needs.

Hybrid plans combine traditional benefits, such as drug and dental coverage, accidental death and dismemberment, and life insurance, with the flexibility of healthcare spending accounts. “One-size-fits-all plans are mediocre at best, so offering choice is essential,” Crowder says.

A

mix of empathy, speed, and precision at the

heart of support

On the service and support fronts, The Benefits Trust balances automation and

CANADA’S EMPLOYEE BENEFITS INDUSTRY BY SIZE, SHARE, AND GROWTH IN 2024

TOP BENEFIT PROVIDERS

tech tools with a personal touch. It emphasizes communicating with its members and plan sponsors in the way they prefer, including by email, an online portal, and a cutting-edge face recognition app.

“Personal interaction works; we answer the phone because benefits are emotional,” Crowder explains. “People get a live, friendly person who can empathize and provide the necessary information. Some people may not know the details of their benefits plan until they have a problem, so we’re here to provide that support when they need help.”

The Benefits Trust also educates plan members by offering in-person and virtual lunch-and-learn sessions.

The biggest change Crowder has witnessed in the industry is speed, leveraging data for instant reporting and decision-making. Clients also want quick access to financial information

about their benefit plans to know where they stand with their budgets in real time.

“That used to take weeks, and now it’s almost instant,” he says. “Speed and accuracy are key because many Canadians live paycheque to paycheque, so waiting for weeks for claim reimbursement is no longer acceptable.”

The team’s deep understanding of their plan sponsor’s workforce and goals enables them to customize dynamic plans that attract and retain employees at varying stages of their careers.

Mental health services are on the front burner of the evolution of benefits. The Benefits Trust is the first provider to remove mental health from paramedical coverage and put it in its own silo with higher limits.

“Our clients have told us that when someone suffers from mental health, productivity goes down, and if someone’s family member is struggling, their productivity also

goes down because dealing with it is allencompassing,” he adds.

In addition, the definition of mental health practitioner has expanded, and EAPs are more important than ever, says Crowder, who says that he has sold more of them in the last five years than in the previous 25.

INSIGHTS

As part of our editorial process, Key Media’s researchers interviewed the subject matter experts below for an independent analysis of this report and its findings.

Daniel Drolet, ASA, CPHR Senior Partner, Group Benefits Normandin Beaudry

Dimitri Poliak Principal, Savings Normandin Beaudry

Kandy Cantwell, CEBS Partner, Benefits Montridge

TOP BENEFIT PROVIDERS 2024

Phone: 1 800 487 2993

Email: rcrowder@thebenefitstrust.com

Website: thebenefitstrust.com

The Benefits Trust

FCA Benefits

Unpacking the economic impact of DB plans

Study reveals that every dollar of DB payouts generates $1.43 in economic output for Ontario

A RECENT study of DB pension plans’ economic impact offered a strong case for this pension model. A report by the Conference Board of Canada on behalf of the Healthcare of Ontario Pension Plan (HOOPP), OPTrust, and the University Pension Plan (UPP) found an array of knock-on benefits to Ontario’s economy. Notably, the report found DB plans in Ontario contributed $34.6 billion to provincial GDP, and generated more than $60 billion in economic output and $17.4 billion in tax revenues.

Alan Chaffe, associate director of economic research at the Conference Board of Canada, explained some of the results and highlighted why DB plans appear to have an outsized impact on their local economies.

“The report suggests and shows that there is a significant contribution that retirees generate in the economy. So whether we’re looking at the impact of their spending on gross domestic product, the jobs that are created because of their spending, or even the tax revenues that are generated, it’s quite a substantial impact,” Chaffe says.

He notes that the study explored only the economic impacts of DB pension plan payouts, not that of DB plan operations – the salaries and spending associated with running these plans. He also explains why the GDP and economic output numbers diverge. GDP, he says, does not “double-count” the various impacts of a piece of spending. Economic output, however, does. Using the example of purchasing a bicycle, GDP would measure the

amount paid for that bike, while economic output would measure the amount paid for everything along the supply chain that led to that bike.

Looking at economic output, the report found that DP plan payouts generate an outsized impact to the tune of $1.43 for every $1.00 paid. Chaffe notes that this is driven by the compounding effect of spending by pension beneficiaries. While the study itself didn’t explore why DB plans have this impact,

contribution plan payments or independent retirement savings. Notably, however, the report found that the $42.7 billion in benefits paid out to 1.23 million Ontario retirees by DB plans accounted for 71 percent of all retirement income from employer and personal pensions and savings plans in the province.

In assessing economic impact, the study did not take into account the costs to employers of maintaining these plans. However, Chaffe notes that around 80 percent of the payments

“The key takeaways from this report really should be how much economic activity is being generated because of these payouts to defined benefit pension plan members”

Alan Chaffe, Conference Board of Canada

Chaffe points to other research that has highlighted the importance of secure income streams in retirees’ spending confidence. When a retiree has access to defined benefit pension payments, they may feel less concerned that they will run out of money later in life. That can prevent the tendency to oversave, and means that DB pension payouts are more likely to enter the economy.

The research was limited solely to DB plans, and Chaffe says that there is no comparable study of the impact generated by defined

from these plans are generated through investment returns.

Chaffe hopes that plan sponsors assessing the prospects of an aging population and largescale retirements will look not just at the cost of DB plans, but also at their outsized economic impacts.

“I think that that key takeaways from this report really should be how much economic activity is being generated because of these payouts to defined-benefit pension plan members,” he says.

Alternatives to GLP-1 medications

As plan sponsors consider the costs and efficacy of GLP-1 drugs, they should not ignore alternatives

IN THE quest to manage diabetes and regulate blood sugar, GLP-1 drugs like Ozempic, Mounjaro, and Wegovy have garnered significant attention for their ability to improve insulin sensitivity, curb hunger, and promote weight loss. Secretins and similar diabetes medications represent the largest increase in drug spending in Canada in 2023. Diabetes medications are now the top category for drug claims in Canada.

There are alternatives and complements

to medications out there. From herbs to modern insights into the gut-brain connection, these natural alternatives are gaining momentum as viable, science-backed strategies for controlling blood sugar and potentially losing weight.

GLP-1 drugs work by enhancing insulin secretion, slowing gastric emptying, and reducing appetite. Potential natural alternatives therefore must work on one or more of these pathways, which combined can

improve blood sugar regulation and potentially lead to weight loss in those with type 2 diabetes.

For plan sponsors seeking to cover obesity and diabetes, these alternatives can offer a worthy contrast or complement to pharmaceutical solutions.

Dietary fibre and resistant starch

Dietary fibre, particularly soluble fibre and resistant starch, can mimic some of the

effects of secretins by slowing digestion, improving insulin sensitivity, and creating a sensation of fullness.

Soluble fibre is found in whole grains such as oats as well as legumes, and seeds like chia and flaxseed. It slows the absorption of sugar into the bloodstream. This can reduce post-meal blood sugar spikes, helping maintain stable glucose levels.

Resistant starches, found in foods such as cooked and cooled potatoes and legumes, resist digestion in the small intestine and ferment in the colon. This fermentation process promotes the production of short-chain fatty acids (SCFAs) like butyrate, which have been shown to improve insulin sensitivity and promote GLP-1 secretion.

Psyllium powder is a common supplement form of both resistant starches and soluble fibres, and research supports its role in both weight loss and glycemic control.

Clinical studies have demonstrated that a diet high in resistant starch improved insulin sensitivity and increased GLP-1 levels in individuals with insulin resistance. Additionally, fibre-rich diets are strongly associated with improved glycemic control and reduced risk of type 2 diabetes. Soluble fibres and resistant starches are also safe to be used alongside diabetes medications.

Berberine

Berberine, a bioactive compound found in several plants, has been extensively studied for its glucose-lowering effects. Berberine activates a key regulator of glucose metabolism. It also appears to enhance insulin sensitivity and reduce glucose production in the liver, similar to the actions of metformin — another common diabetes medication.

A meta-analysis of clinical trials found that berberine significantly lowered fasting

blood glucose, HbA1c, and insulin resistance in people with type 2 diabetes. Some studies suggest berberine may also promote GLP-1 secretion, enhancing insulin response following meals. Those who are on medications that make them at risk of hypoglycemia should use caution when considering berberine supplementation.

Probiotics and gut health

Gut health is increasingly recognized as a key factor in glucose metabolism. Certain probiotic strains have shown promise in regulating blood sugar by modulating gut microbiota and promoting the release of GLP-1.

Lactobacillus rhamnosus and Bifidobacterium animalis have been specifically studied for their role in enhancing GLP-1 secretion. Fermented foods like kimchi, kefir, and sauerkraut, which are rich in probiotics, can improve gut health and influence glucose regulation by enhancing the gut-brain axis and stimulating incretin hormones like GLP-1. Several of these foods also contain fibre, which can increase this effect. The role of probiotics in weight loss is being studied, with some promising results.

Probiotics are generally safe for those with diabetes.

Exercise and physical activity

Regular physical activity is one of the most effective natural ways to improve insulin sensitivity and regulate blood sugar. Both aerobic exercise and resistance training enhance glucose uptake by muscles and increase insulin sensitivity. Moreover, exercise has been shown to increase GLP-1 secretion in response to meals.

Research has found that both shortterm and long-term exercise interventions increase GLP-1 levels, improve insulin sensitivity, and reduce post-meal glucose levels in people with type 2 diabetes.

Physical activity also aids weight loss and weight maintenance, and can help to offset muscle mass lost in those who are taking GLP-1 secretions.

While GLP-1 medications are effective for managing diabetes and promoting weight loss, several natural alternatives can offer similar benefits by improving insulin sensitivity; regulating supplements and lifestyle interventions such as exercise provide safe and effective ways to support glucose metabolism and potentially reduce reliance on pharmaceuticals. They may warrant further exploration as plan sponsors build out GLP-1 coverage.

Sources

1https://www.cihi.ca/en/prescribed-drug-spending-in-canada-2023 2https://www.telus.com/en/health/press-releases/ telus-health-2023-drug-trends-report

3GibbRD,SloanKJ,McRorieJWJr.Psylliumisanaturalnonfermented gel-formingfiberthatiseffectiveforweightloss:Acomprehensivereviewand meta-analysis.JAmAssocNursePract.2023Aug1;35(8):468-476.doi:10.1097/ JXX.0000000000000882.PMID:37163454;PMCID:PMC10389520.

4GholamiZ,ClarkCCT,PaknahadZ.Theeffectofpsylliumonfastingbloodsugar, HbA1c,HOMAIR,andinsulincontrol:aGRADE-assessedsystematicreviewandmetaanalysisofrandomizedcontrolledtrials.BMCEndocrDisord.2024Jun6;24(1):82.doi: 10.1186/s12902-024-01608-2.PMID:38844885;PMCID:PMC11155034.

5Raben,Aetal.Resistantstarch:theeffectonpostprandialglycemia,hormonal response,andsatiety.TheAmericanJournalofClinicalNutrition,Volume60,Issue 4,544-551

6Araj-KhodaeiM,AyatiMH,AziziZeinalhajlouA,NovinbahadorT,YousefiM, ShiriM,MahmoodpoorA,ShamekhA,NamaziN,SanaieS.Berberine-induced glucagon-likepeptide-1anditsmechanismforcontrollingtype2diabetesmellitus: acomprehensivepathwayreview.ArchPhysiolBiochem.2023Nov3:1-8.doi: 10.1080/13813455.2023.2258559.Epubaheadofprint.PMID:37921026.

7GuoJ,ChenH,ZhangX,LouW,ZhangP,QiuY,ZhangC,WangY,LiuWJ.TheEffectof BerberineonMetabolicProfilesinType2DiabeticPatients:ASystematicReview andMeta-AnalysisofRandomizedControlledTrials.OxidMedCellLongev.2021 Dec15;2021:2074610.doi:10.1155/2021/2074610.PMID:34956436;PMCID: PMC8696197.

8ZheZhang,XiLiang,YouyouLv,HuaxiYi,YujieChen,LuBai,HuiZhou,TongjieLiu,Rui Li,LanweiZhang,Evaluationofprobioticsforimprovingandregulationmetabolism relevanttotype2diabetesinvitro,JournalofFunctionalFoods,Volume64,2020, 103664,ISSN1756-4646,https://doi.org/10.1016/j.jff.2019.103664.

9FujiwaraY,EguchiS,MurayamaH,TakahashiY,TodaM,ImaiK,TsudaK.Relationship betweendiet/exerciseandpharmacotherapytoenhancetheGLP-1levelsintype 2diabetes.EndocrinolDiabetesMetab.2019May16;2(3):e00068.doi:10.1002/ edm2.68.PMID:31294084;PMCID:PMC6613229.

Lisa Spriet RD, MSc co-founded NutriProCan in 2015 to help changes lives through nutrition by offering registered dietitian services to individuals and groups through Canada.

Liquidity issues affecting private markets

A multi-manager, multi-strategy approach to private markets investing can optimize portfolios for returns, volatility and liquidity

ALTHOUGH THE US Federal Reserve and other central banks are now cutting interest rates, the post-COVID hiking cycle continues to affect private markets. First COVID and then tighter financial conditions, along with uncertainty and volatility, limited the appetite of strategic and financial buyers and the ability to IPO businesses. Earlier-vintage buyout, venture capital, and real estate funds were limited in their ability to monetize investments and book realized gains.

According to a March 2024 Bain & Co. report cited by the Financial Times, private equity managers are sitting on a record 28,000 unsold companies worth more than US$3 trillion. Industry DPIs (distributions to paid-in capital; see chart) are now well below 1.0x and many limited partners do not have the dry powder to allocate to new funds, severely affecting fundraising. This lack of flexibility to allocate to new funds

may be to their detriment, as we believe the combination of an economic soft landing, lower interest rates, and easy borrowing conditions will drive animal spirits in the private markets, leading to increased deal flow and returns.

Part of the market response to slow distributions has been increased interest in private credit and secondaries, with the common thread being liquidity management.

In private credit, the buoyant demand we are witnessing in the public markets is multiples greater in the private markets. Part of the demand is the result of annuities being sold at a pace three times that of 2021. As well, high overnight interest rates, elevated spreads and an extended period of an inverted or flat yield curve have made private credit particularly compelling. Also contributing could be the expectation that private credit, where underlying investments

are usually short in duration (e.g., one-year secured loans), could help mitigate fund lifecycle liquidity issues.

Secondary transactions, which are typically done at a material discount to NAV (i.e., an illiquidity premium on top of the asset class’s illiquidity premium), provide sellers with liquidity to rebalance portfolios and buyers with vested private equity exposure and the expectation of near-term distributions, since the underlying investments are closer to the end of their life cycle than those made in newer vintages.

It is easy to understand the attraction of adding private market assets to portfolios for return-seeking and volatility-dampening reasons. As asset-liability matching permits, investors can harvest the illiquidity premia offered by private markets. What conclusions, though, can we draw from the growth of private credit and secondaries and this

DISTRIBUTIONS TO PAID-IN CAPITAL RETURNS BY FUND VINTAGE

new focus on DPI? Perhaps general partners could not envision how a high-volatility, high-borrowing-cost environment would affect monetizations. Perhaps liquidity is consistently undervalued until it is needed. Perhaps portfolio construction approaches to private market assets were flawed to start.

Optimization can be run for returnseeking, volatility-dampening, or for liquidity management. Alternatively, optimization can be run to accommodate all three goals, with an additional liquidity lift coming from vintage diversification. Holding private credit, for example, alongside private equity and venture capital can provide the liquidity to be able to remain agile and tactical. Our analysis suggests that a portfolio optimized for returns, volatility, and liquidity comprising allocations across the private market segments can lift the information ratio when added to client balanced portfolios.

Source: PitchBook,asofOctober2024.*AsofSeptember30,2023.DPI,ordistributiontopaid-in,isaperformancemetricusedinprivateequitytomeasuretheamountofcapitalthathasbeenreturned.

Using MSCI US private markets index data from 2005 to Q3/24, a 20 percent allocation to a growth-focused private markets portfolio with a strategic asset allocation of 30 percent private equity, 20 percent private credit, 20 percent real estate, and 10 percent each to infrastructure, venture capital, and the S&P 500 (via SPY) lifts a global balanced portfolio’s historical returns by 30 bps to 7.4 percent, lowers volatility by 170 bps to 5.7 percent, and therefore lifts the information ratio from one to 1.3. Liquidity is also a function of performance behavior relative to other parts of the market. This strategy has correlation coefficients of 0.2 to the Russell 1000 Index and -0.2 to the Bloomberg US Aggregate Index.

Investors should always be aiming to solve for the right outcomes with the right exposures. The significant increase in private credit and secondaries interest suggests

that liquidity, and the flexibility it affords, have been underappreciated. A diminished ability in private markets to rebalance exposures makes portfolio construction incredibly important. Greater performance disparity across managers in the private markets than in the public markets and the higher persistence of outperformance makes manager selection likewise incredibly important. Scale, experience, and resources are required to get both right, and plans and endowments should consider multi-manager, multi-strategy, multi-vintage fund-offund solutions.

Marc-André Lewis is

Clear ESG standards will mean cleaner investments

With growing stakeholder expectations for ESG integration into investment programs, investors are pushing for transparency amid greenwashing fears

DESPITE THE geopolitical risks and current economic climate, environmental, social, and governance (ESG) integration continues to grow in importance, particularly for institutional investors and pension funds. With increased scrutiny from regulators and investors, the need to clarify ESG practices and counteract greenwashing is becoming a central theme for many organizations.

Thematic investing based on ESG trends has also gained significant interest, driven by Canada’s net-zero emissions commitment and growing stakeholder expectations for ESG integration into investment programs. Large Canadian pensions saw sustainable investments rise from $163 billion to $276 billion in one year due to climate concerns and global social issues. And as a Mackenzie Investments study found earlier this year, despite 23 percent of Canadians currently engaging in sustainable investing, 61 percent continue to have concerns about trust and transparency, especially when it comes to greenwashing.

It’s clear the need for consistent and

transparent ESG disclosure standards and regulatory frameworks has accelerated as ESG investing grows. Brian Minns, senior managing director of responsible investment at University Pension Plan (UPP), and Mary Jane McQuillen, portfolio manager and head of ESG at ClearBridge Investments, part of Franklin Templeton, acknowledges that greenwashing, where companies or funds overstate or mislead their commitment to ESG goals, is an issue of real concern.

The challenges of greenwashing McQuillen pointed out that the proliferation of ESG-labelled products in recent years, which made it more difficult for investors to distinguish between them, has led to a “siphoning” process by regulators. This is particularly so in Europe, where the Sustainable Finance Disclosure Regulation (SFDR) now aims to filter out false claims.

This has led to stricter requirements for funds to justify their ESG credentials, with many funds having to reclassify or even

remove ESG terminology from their names. The latest debate is around naming conventions and whether companies can use the word “sustainability” in the fund name if they’re not meeting criteria.

“You have to have a certain percentage of that in the portfolio to be allowed to use the name ‘sustainability’,” McQuillen explains. “Between the disclosure requirements, the categorization, and the naming rules, we’ve seen a lot of funds ‘deregister themselves’, we’ve seen funds withdrawn from the marketplace or taken off shelves, and we’ve seen funds change their names to remove ‘sustainability’. It’s now caused managers to have a good look at themselves and say, ‘Can we say we do this to the public through these disclosure requirements?’”

Minns shares a similar perspective, recognizing that while greenwashing remains an issue, he sees a correction happening. “We’re in this phase of a little bit of correction on greenwashing and going back to basics,” he says, adding that this trend will likely lead to more transparency and honesty from companies regarding their ESG commitments.

Driving change through stewardship

He explains that UPP’s approach to addressing greenwashing includes a focus on stewardship and clear communication of its investment policies and practices. Minns maintains that UPP works to ensure its partners and investment managers are properly identifying and addressing material ESG risks and opportunities. Additionally, UPP aims to be transparent in how it incorporates ESG considerations to meet its fiduciary duties and investment objectives for its beneficiaries.

ClearBridge takes a similar stance. “As we know, corporations can have a very big impact on the planet. It could be very positive, or it could be somewhat negative, depending on the company. So where can we work with companies? It’s through our active ownership,” McQuillen emphasizes.

Minns believes ensuring that companies communicate clearly and truthfully about

their ESG practices is vital to maintaining trust and credibility with stakeholders. “People should tell the truth about what they’re doing, and they should explain it in terms that their primary stakeholders can understand.”

ESG opportunities in the years ahead

Looking ahead, both Minns and McQuillen expect ESG to remain a focal point for institutional investors, with climate change and social equity likely to dominate the agenda. According to McQuillen, climate change is a particularly urgent issue, with companies increasingly focused on aligning with initiatives like the Paris Agreement and the Science Based Targets Initiative.

While Minns points to the reduction of greenhouse gas emissions to help mitigate climate change, he asserts that politically, this can be challenging. “We know that society needs to reduce greenhouse gas emis-

KEY ESG STATISTICS

ESG-related institutional investments are expected to be worth $33.9 trillion by 2026

90% of S&P 500 companies (the 500 biggest US companies) and 70% of Russell 1000 companies (a group of the 1000 most influential US businesses based on market value) publish reports on ESG data

Around 83% of consumers believe companies are responsible for shaping ESG best practices

Four out of five investors plan to increase ESG investments in the next five years

85% of investors think ESG investments build resilience and unlock better financial returns However, 75% of companies believe they’re not ready for regulation or ESG data assurance

Sources:PwC,Bloomberg,McKinsey,KPMG

“We’ve seen funds change their names to remove ‘sustainability’ ... [causing] managers to have a good look at themselves and say, ‘Can we say we do this to the public through these disclosure requirements?’”

Mary Jane McQuillen, Franklin Templeton

sions drastically to address climate change, and we have all the tools and technology to do so now, but implementation is a sociopolitical challenge that citizens around the world need to support.”

“Most of our returns as an investor come from what’s going on with the whole economy. Yes, we make good invest -

ment decisions. Those help, and those are important for our beneficiaries, but if economies aren’t working, and the big systems aren’t working, that’s very hard for us to earn investment returns,” he adds.

McQuillen identifies the growing focus on diversity, equity, and inclusion (DEI) as a major trend. She emphasizes that there is

DISTRIBUTIONS TO PAID-IN CAPITAL RETURNS BY FUND VINTAGE

now a clearer business case for “diversity of talent, diversity of thinking, and diversity of experience,” with studies showing that companies with more diverse leadership tend to outperform their peers. DEI initiatives are also increasingly seen as essential for maintaining a competitive edge.

Minns believes inequality is another systemic risk that cannot be ignored. “Inequality is another challenge our society faces, making it harder to tackle other issues like climate change. If people are disadvantaged, and they’re finding life difficult, then they’re going to find it difficult to adopt to policy changes that they might not see the benefit from for years to come,” he says.

Meanwhile, Alana Dubinski, chief compliance officer and head of ESG strategy at TELUS Health, asserts that pension plans have been impacted by ESG more than other investor groups. This is due not only to the fiduciary duty that pension plan administrators have in making investment decisions, but also to the speed of regulatory change; stakeholder pressures; and being caught in the crosshairs of governments and politicians against an ESG backlash.

“I believe pension plans will need to put aside the ‘noise’ of politics and look at ESG no differently than at any other factors relevant to the long-term viability and sustainability of their plans,” she says. “ESG issues have become table stakes in the assessment

Source: KPMG

looking to integrate ESG into their plans. Regulation will continue to play a key role in shaping the ESG landscape. CAPSA’s Risk Management Guideline for Canadian pension plans explicitly addresses the importance of ESG considerations.

“Pension plans will need to put aside the ‘noise’ of politics and look at ESG no differently than at any other factors relevant to the long-term viability and sustainability of their plans”

Alana Dubinski, TELUS Health

of investment risks and opportunities for a pension plan, and for DC pension plans with member choice, ESG investment options are also relevant considerations.”

This is where she points to CAPSA’s recently published Risk Management Guideline as both timely and particularly useful for pension plan administrators

“Conversely, ignoring or failing to consider ESG information that might materially affect the fund’s financial risk return profile could be a breach of fiduciary duty,” Minns says, citing a quote from the guidelines. “If CAPSA is making these sorts of statements, then pension plans better be addressing these things in a very thorough way.”

ESG DIRECTORY

ADDENDA CAPITAL

Contact: Janick Boudreau, CFA, Executive Vice President, Business Development and Client Partnerships

Address: 800 René-Lévesque Blvd. W., Suite 2800, Montréal, QC, H3B 1X9 PH: 514-908-1989

Email: j.boudreau@addendacapital.com

Website: www.addendacapital.com

ESG/SRI products or services: Integrated ESG research for all asset classes; Impact Investing; Fossil Fuel Free Global Equity; Climate Transition Canadian and International Equity; Eco-Social Commercial Mortgages; Clientdirected SRI screens

Year ESG/SRI products or services first offered: 1992

Number of ESG/SRI Canadian pension fund clients: 6

Philosophy/style: At Addenda Capital, we consider environmental, social, and governance (ESG) matters in all of our investment and stewardship activities. Our objective is to enhance long-term investment performance for our clients and promote sustainable development for society.

ALLIANCEBERNSTEIN L.P.

Contact: Steven Arts, Vice President/Director

Address: 200 Bay Street, North Tower, 12th Floor, Toronto, ON, M5J 2J2 PH: 647-375-2805

Email: steven.arts@alliancebernstein.com; alliancebernsteincanadateam@ alliancebernstein.com

Website: alliancebernstein.com

ESG/SRI products or services: At AllianceBernstein, we seek to integrate financially material ESG factors into most of our actively managed strategies. We also offer three types of “Portfolios with Purpose.” These strategies, in addition to their financial return/risk objectives, incorporate one or more ESG objectives/approaches into their day-to-day management: Sustainable Platform; Equity Strategies; Responsible+

Strategies; Green Managed Volatility Strategy; Global ESG Improvers; Impact Strategies. Year ESG/SRI products or services first offered: ESG factors have long been integrated into AllianceBernstein’s research and investment processes, even before we became a PRI signatory in 2011. We integrate material ESG and climate change factors at applicable steps of the investment process for most of our actively managed strategies. AB began offering dedicated ESG products when we launched our first Portfolio with Purpose in 2013.

Number of ESG/SRI Canadian pension fund clients: 27

Philosophy/style: Responsible investing is a way we seek to unlock opportunity for our clients. We integrate material ESG factors into our investment process for most actively managed strategies. We designed Portfolios with Purpose to achieve financial objectives with dedicated ESG themes.

ALPHAFIXE CAPITAL

Contact: Jonathan Lapointe, Vice President, Business Development, Partner Address: 1800 Ave. McGill College, Suite 2420, Montreal, QC, H3A3J6

PH: 514-861-3493

Email: j.lapointe@alphafixe.com

Website: www.alphafixe.com

ESG/SRI products or services: AlphaFixe ESG Green Bond Fund (Universe, Short Term and Long Term Benchmark); AlphaFixe Global Impact Bond Fund (US Benchmark); AlphaFixe ESG Short Term Corporate Opportunities Fund; NBI Sustainable Canadian Bond ETF (ticker: NSCB); NBI Sustainable Canadian Corporate Bond ETF (ticker: NSCC); NBI Sustainable Short Term Canadian Bond ETF (ticker: NSSB); Best in Class ESG and Climate Aligned Bond Strategies. All mandates are Fossil Fuel Free. ESG integrated in all mandates. Reporting on portfolio carbon footprint and ESG metrics on a quarterly basis Year ESG/SRI products or services first offered: 2008

Number of ESG/SRI Canadian pension fund clients: 49

Philosophy/style: We have always been convinced that responsible corporate behaviour toward ESG factors has the potential to improve the long-term financial

performance of companies. That is why we believe it is appropriate to integrate ESG factors into every investment decision.

AMUNDI CANADA

Contact: Tanya Bishop, Senior Vice President

Address: 130 Adelaide St. W., Toronto, ON, M5H 1T1

PH: 647-201-4225

Email: tanya.bishop@amundi.com

Website: www.amundi.com

ESG/SRI products or services: ESG Advisory : ESG Policy Design, ESG Portfolio Screening & Action Plan, ESG Market Standards, ESG Rating Model. ESG Investment Solutions : According to Amundi’s Responsible Investment Policy; According to Clients’ Responsible Investment Policy; Manager Selection/Responsible Funds. ESG Services: ESG Reporting, ESG Training, Integrated ESG Data Solutions, and ALTO Sustainability Platform. ESG OCIO: Integrated ESG consulting and services with assets under advisory management

Year ESG/SRI products or services first offered: 1986

Number of ESG/SRI Canadian pension fund clients: 17 clients with ESG-related considerations

Philosophy/style: As a responsible asset manager, our role is to create long-term sustainable value for our customers and all our stakeholders, taking into account the major challenges facing our world and society.

BGO

Contact: Yvonne Davidson, Principal, Capital Raising and Investor Relations

Address: 1 York Street, Suite 1100, Toronto, ON, M5J 0B6

PH: 647-335-4096

Email: yvonne.davidson@bgo.com

Website: www.bgo.com

ESG/SRI products or services: BGO Canada does not have a dedicated ESG/SI fund.

However, BGO’s Sustainable Investing (SI) Team helps deliver ESG strategies to our global investment platform. The SI Team partners with our investment and real estate management professionals to help integrate ESG across the asset life cycle in alignment with client goals. These strategies help target risk mitigation, value creation, industry stewardship, and stakeholder engagement to help deliver ESG performance for our clients.

Year ESG/SRI products or services first offered: Although BGO does not have any dedicated ESG products, the Prime Canadian Property Fund has a long, demonstrated track record of ESG performance and recognition. Prime Canadian has participated in GRESB for over a decade and is classified as Article 8 under the EU Sustainable Finance Disclosure Regulation (SFDR) as of early 2024.

Philosophy/style: As a fiduciary, BGO approaches sustainable investing from both a risk mitigation and value creation perspective to help enhance the long-term financial and operational resiliency of the asset.

BURGUNDY ASSET MANAGEMENT LTD.

Contact: Mike Sandrasagra, Vice President, Global Head of Consultant Relations

Address: 181 Bay Street, Suite 4510, Toronto, ON, M5J 2T3

PH: 416-869-8980

Email: msandrasagra@burgundyasset.com

Website: burgundyasset.com

ESG/SRI products or services: While all of Burgundy’s investment mandates integrate ESG considerations, select Socially Responsible Investing (SRI) Funds and Foundation Funds apply negative screens and exclude a defined set of industries. These specific SRI and Foundation Funds exclude investments in companies directly producing tobacco, armaments, and cannabis, as well as gambling-related companies.

Year ESG/SRI products or services first offered: 2002

Number of ESG/SRI Canadian pension fund clients: 0; most clients that invest in our Foundation and SRI Funds are Canadian foundations and endowments.

Philosophy/style: At Burgundy, we take an ESG integration approach in our investing. This involves incorporating material

environmental, social, and governance considerations in our investment process and decision-making.

CAPITAL GROUP CANADA

Contact: Kevin Martino, Vice President

Address: 181 Bay Street, Suite 3100, Toronto, ON, M5J 2T3

PH: 416-815-2128

Email: kevin.martino@capgroup.com

Website: capitalgroup.com/ca

ESG/SRI products or services: Capital Group manages US$2.7 trillion (as of June 30, 2024) in actively managed equity, fixed income, and multi-asset investment portfolios through funds and segregated accounts worldwide. We integrate ESG issues into our investment approach, The Capital System, across our actively managed equity, fixed income and multi-asset fund strategies. Investment analysts and portfolio managers are responsible for analyzing material ESG risks and opportunities and assessing how they may impact an issuer’s ability to generate long-term value. For our regional Europe and Asia client offerings, we also manage SFDR (the EU Sustainable Finance Disclosure Regulation) Article 8 and OEIC funds, which extend beyond our ESG integration process to implement binding ESG criteria: ESG and norms-based screens as well as, in some cases, a carbon footprint target; and three SFDR Article 8 global multi-thematic sustainable funds – one global equity, one global corporate bond, and one global balanced. These strategies are positively aligned to the UN Sustainable Development Goals (SDGs), investing in companies and issuers that are either majority-aligned to the UN SDGs or are credibly transitioning their business to higher positive alignment over the long term. On client request, we manage segregated accounts that accommodate client-specific ESG criteria such as exclusions or a carbon footprint target.

Year ESG/SRI products or services first offered: 2022 Philosophy/style: We integrate ESG across investment strategies. Consideration of material ESG risks and opportunities is deeply woven into The Capital System and factored into our fundamental research, due diligence and engagement. Our investment process

includes a three-component approach to ESG integration.

CIBC ASSET MANAGEMENT INC.

Contact: Carlo Dilalla, Managing Director and Head, Institutional Asset Management

Address: 161 Bay Street, Suite 2230, Toronto, ON, MSJ 2S1

PH: 416-980-2768

Email: carlo.dilalla@cibc.com

Website: www.cibcam-institutional.com

ESG/SRI products or services: CIBC Sustainable Canadian Core Plus Bond Fund; CIBC Sustainable Conservative Balanced Solution; CIBC Sustainable Canadian Equity Fund; CIBC Sustainable Balanced Solution; CIBC Sustainable Global Equity Fund; CIBC Sustainable Balanced Growth Solution; CIB C S ocially Responsible Balanced Pool; CIBC Sustainable Global Equity Pool; customized sustainable investment solutions in separately managed accounts

Year ESG/SRI products or services first offered: CIBC Asset Management has offered SRI segregated mandates to clients for 30+ years. In 2017, we became PRI signatories and have added new capabilities and services year over year.

Philosophy/style: At CIBC Asset Management, we believe that ESG factors create risks and opportunities for investors, and it is in the best interest of our clients to consider these factors when making an investment decision.

CONNOR, CLARK & LUNN FINANCIAL GROUP

Contact: Brent Wilkins, Senior Vice President, Head of Institutional Sales, Canada

Address: 1400–130 King Street West, P.O. Box 240, Toronto, ON, M5X 1C9

PH: 416-364-5396

Email: bwilkins@cclgroup.com

Website: cclfg.cclgroup.com

ESG/SRI products or services: Global Equity, International Equity, Emerging Markets Equity, Emerging Markets Credit, Market Neutral,

Canadian Fixed Income, Canadian Equity, Real Estate, Infrastructure and Commercial Mortgages

Year ESG/SRI products or services first offered: 1995

Number of ESG/SRI Canadian pension fund clients: 213

Philosophy/style: We believe that many ESG factors have a material impact on investment performance across time horizons and asset classes. As such, all investment teams spend significant time researching ESG risks and opportunities and engaging with company management on ESG topics.

DESJARDINS GLOBAL ASSET MANAGEMENT

Contact: Natalie Bisaillon, Vice President and Chief of Partnership and Institutional Client Relations

Address: 1, Complexe Desjardins, 20th Floor, South Tower, Montreal, QC, H5B 1B2 PH: 514-214-5742

Email: natalie.bisaillon@desjardins.com

Website: www.dgam.ca

ESG/SRI products or services: Desjardins RI Canada – Net-Zero Emission Pathway –ETF; Desjardins RI USA – Net-Zero Emission Pathway – ETF; Desjardins RI Developed ex-USA ex-Canada – Net-Zero Emissions Pathway – ETF; Desjardins RI Emerging Markets – Net-Zero Emissions Pathway – ETF; Desjardins RI Canada Multifactor – Net-Zero Emissions Pathway – ETF; Desjardins RI USA Multifactor – Net-Zero Emissions Pathway – ETF; Desjardins RI Developed ex-USA ex Canada Multifactor – Net-Zero Emissions Pathway – ETF; Desjardins RI Emerging Markets Multifactor – Net-Zero Emissions Pathway ETF; Desjardins Sustainable American Equity ETF; Desjardins RI Global Multifactor – Fossil Fuel Reserves Free ETF; Desjardins SocieTerra Canadian Equity Income Fund; Desjardins SocieTerra Canadian Equity Fund; Desjardins SocieTerra Short-term Income Fund; Desjardins SocieTerra Canadian Bond Fund; Desjardins SocieTerra Canadian Corporate Fund; DGAM – Systematic ESG Emerging Markets Equity Fund; DGAM –Systematic ESG World Equity Fund; Universe Bond Fund; Advisory Mandate RI Canadian Bonds; Advisory Mandate RI Canadian Bonds ex Fossil Fuel; Advisory Mandate RI Short Term

Canadian Bonds; Advisory Mandate RI Canadian Equity; Advisory Mandate RI Canadian Equity – Ex Fossil Fuel

Year ESG/SRI products or services first offered : Desjardins has a long track record and experience in the responsible investment (RI) space, with our first environmental fund created in 1990.

Number of ESG/SRI Canadian pension fund clients: 39 Philosophy/style: At DGAM, responsible investment is key to our management philosophy. We believe responsible investment is consistent with our mandate as portfolio managers; requires action and innovation; means taking a longer-term vision; and involves inspiring and influencing.

FIERA CAPITAL CORPORATION

Contact: Sarah Aves, Co-head of Canadian Institutional Clients

Address: 1981 McGill College Avenue, Montreal, QC, H3A 0H5

PH: 514-954-3300

Email: saves@fieracapital.com

Website: www.fieracapital.com

ESG/SRI products or services: The list of ESG-labelled products and funds available on our Canadian platform can be found at www.fieracapital.com/wp-content/uploads/ page/3380/esg-product-overview-2024-en. pdf. Note that we conduct ESG integration in our non-ESG labelled products as well. Year ESG/SRI products or services first offered: Some of our ethical funds (SRI products) pre-date the creation of Fiera Capital in 2003.

Number of ESG/SRI Canadian pension fund clients: 264 (as of June 30, 2024). We integrate ESG considerations into all of our strategies, but exposure to exclusionary strategies (ethical/SRI and/or FFF) may be limited to some of them.

Philosophy/style: We believe that for ESG factors to be well integrated within the investment decisions we make, investment teams must be accountable for their ESG integration processes. This belief guides the way our investment teams implement their strategies, conduct materiality assessments, and integrate ESG factors in a manner that best suits their respective asset class, investment style, and geography.

FRANKLIN TEMPLETON

Contact: Dennis Tew, Head of Sales, Canada

Address: 200 King St. W, Ste. 1400, Toronto, ON, M5H 3T4

PH: 416-957-6023

Email: dennis.tew@franklintempleton.ca

Website: www.franklintempleton.ca

ESG/SRI products or services: Our various investment teams independently evaluate ESG factors from multiple angles, varied by asset class (Equity, Fixed Income & Alternatives), sub-asset class, regional focus, or individual mandates.

Year ESG/SRI products or services first offered: Introduced in 1954 by Sir John Templeton, the Templeton Growth Fund was our firm’s first product offering that followed socially responsible investment criteria.

Number of ESG/SRI Canadian pension fund clients: In Canada, we currently have 6 pension plans invested in sustainable focus mandates.

Philosophy/style: Each of the Franklin Templeton investment teams has autonomous sustainable investment approaches with dedicated personnel in each asset class, region, and specialism. To leverage the expertise across these teams, a firm-wide Stewardship and Sustainability Council was established to provide a forum for dialogue and sharing of best practices around sustainable investing.

GUARDIAN CAPITAL LP

Contact: Robin Lacey, Head of Institutional Asset Management

Address: 199 Bay Street, Suite 2700, Toronto, ON, M5L 1E8

PH: 416-364-8341

Email: rlacey@guardiancapital.com

Website: www.guardiancapital.com

ESG/SRI products or services: GEM Canadian Equity Fund; GEM Global Equity Fund; GEM Fixed Income Fund; GEM Balanced Fund; Guardian Canadian Equity Carbon Constrained Strategy; Guardian Sustainable Funds

Year ESG/SRI products or services first offered: 2005

Philosophy/style: ESG considerations are integrated into all our investment processes and stewardship activities – commonly referred to as ESG Integration and Active Ownership. Our GEM products apply negative screens to exclude companies involved in tobacco, weapons, and other controversial activities.

HILLSDALE INVESTMENT MANAGEMENT INC.

Contact: Harry Marmer, Executive Vice President, Partner

Address: 100 King Street West, Toronto, ON, M5X 1E4

PH: 416-913 3907

Email: ddeck@hillsdaleinv.com

Website: www.hillsdaleinv.com

ESG/SRI products or services: Hillsdale offers customized ESG testing, screening, and weighting services for institutional investors within their investment strategies. For more than 28 years, Hillsdale has invested in companies with attractive financial attributes and sustainable business models. Since 2011, we have focused on ESG strategy testing, screening, weighting, and integration. This includes evaluating companies from the perspective of corporate governance, accounting integrity, board diversity, executive compensation, and CEO quality, along with the use of a significant number of carbon emission and environmental impact metrics. We are committed to ESG investing through our membership and support of the Canadian Coalition for Good Governance (CCGG) and the Carbon Disclosure Project (CDP), and we are a PRI signatory. Hillsdale has specialized in ESG strategy testing, screening, weighting, and implementation since 2011. ESG factors are considered and evaluated in our investment process on a strategy-by-strategy basis alongside all other potential alpha and risk signals. Our proprietary factor library includes ESG factors, in six investment frequencies. ESG factors provide another lens through which we assess stocks. Hillsdale’s best practices and standards for ESG/RI-based i nvesting are summarized as follows:

I. Tone Set by Leadership;

II. Hillsdale’s Seven Stewardship Principles; III. Sound Practices for Determining Materiality;

IV. Unparalleled Data Quality and Integrity; V. An Open Source Research Platform; VI. A Strong Risk Management Framework; VII. A Commitment to Investment Excellence; VIII. Evaluating the Carbon Footprints of Every Portfolio;

IX. A Client Centric Approach on RI/ESG Year ESG/SRI products or services first offered: 2011

Number of ESG/SRI Canadian pension fund clients: 1

Philosophy/style: Hillsdale’s philosophy combines the best of fundamental thinking, tested through a proven, rigorous quantitative methodology, with continually evaluated results relative to expectations. We believe that successful investment processes are adaptive in nature, searching for new alpha sources, potential strategy enhancements, and advanced risk management techniques.

JARISLOWSKY FRASER

Contact: Mark Fattedad, CFA, Regional Vice President, Institutional, Western Canada; Co-Chair of Sustainable Investment Council

Address: Head office: 1010 Sherbrooke St. W., 20th Floor, Montreal, QC, H2A 2R7

PH: 800-736-8666

Email: mfattedad@jflglobal.com

Website: www.jflglobal.com

ESG/SRI products or services: JF FFF Bond Fund; JF Sustainable and Impact Bond Fund; JF FFF Canadian Equity Fund; JF FFF Global Equity Fund; JF FFF Balanced Fund Year ESG/SRI products or services first offered: 2017

LEITH WHEELER INVESTMENT COUNSEL

Contact: Lisa Meger, ESG Analyst and Portfolio Manager

Address: 400 Burrard Street, Suite 1500, Vancouver, BC, V6C 3A6

PH: 604-683-3391

Email: lisam@leithwheeler.com

Website: www.leithwheeler.com

ESG/SRI products or services: Leith Wheeler Carbon Constrained Canadian Equity Fund; Leith Wheeler Carbon Constrained Bond Fund Year ESG/SRI products or services first offered: 2017

Number of ESG/SRI Canadian pension fund clients: 7

Philosophy/style: Leith Wheeler follows an ESG integration approach in the management of all investment strategies. Our Carbon Constrained strategies filter out any business that earns more than 30% of its revenues from fossil fuel-related activities.

LINCLUDEN INVESTMENT MANAGEMENT

Contact: Wayne Wilson, Assistant Vice President

Address: 201 City Centre Drive, Mississauga, ON, L5B 2T4

PH: 416-997-6652

Email: jaclyn.pitushka@lincluden.net

Website: lincluden.com

ESG/SRI products or services: ESG Mandates – Canadian Equities, Global Equities Year ESG/SRI products or services first offered: 2012

Number of ESG/SRI Canadian pension fund clients: 5

Philosophy/style: Value investors who believe that while financial markets are efficient in the long term, they can be inefficient in the short to medium term, and financial markets will often misprice the stock price of a company in the short run, giving an investor the opportunity to buy securities at a discount on their economic or intrinsic value. ESG analysis is integrated in all portfolios in forming an assessment of the quality a nd stability of each company’s cash flows.

MACKENZIE INVESTMENTS

Contact: Fate Saghair

SVP, Brand & Sustainability

Address: 180 Queen Street W., Toronto, ON, M4K 2N2

PH: 437-332-8489

Email: fsaghir@mackenzieinvestments.com

Website: www.mackenzieinvestments.com/en

ESG/SRI products or services: We offer an innovative range of products designed to bring about real change, whether it’s promoting better environmental, social, and governance practices, investing in technologies that address climate change, or promoting equality and inclusivity. We offer clients ESG-integrated, sustainable core and sustainable thematic funds. Mackenzie Global Sustainable Balanced Fund; Mackenzie Global Sustainable Bond Fund; Mackenzie Global Sustainable Bond ETF; Mackenzie Betterworld Canadian Equity Fund; Mackenzie Betterworld Global Equity Fund; Mackenzie Corporate Knights Global 100 Index Fund; Mackenzie Corporate Knights Global 100 Index ETF; Mackenzie Greenchip Global Environmental All Cap Fund; Mackenzie USD Greenchip Global Environmental All Cap Fund; Mackenzie Greenchip Global Environmental Balanced Fund; Mackenzie Global Green Bond Fund; Mackenzie Global Women’s Leadership Fund; Mackenzie Global Women’s Leadership ETF.

Year ESG/SRI products or services first offered: In January 1987, we launched the IG Mackenzie Betterworld SRI Fund.

Number of ESG/SRI Canadian pension fund clients: While do not currently have direct pension clients, within our Greenchip Boutique we have a strong institutional presence with numerous investors, including endowments, foundations, and Municipal Funds.

Philosophy/style: Our diverse investment teams consider material ESG factors in their processes, promote sustainable practices through active stewardship, ensure transparency, and collaborate with stakeholders. Our goal is to deliver competitive returns while fostering a sustainable and equitable world.

NEI INVESTMENTS

Contact: Tasos Dimitriou, Director, Institutional Sales and Relationship Management

Address: 151 Yonge St., Suite 1200, Toronto, ON, M5C 2W7

PH: 416-453-2400

Email: tdimitriou@neiinvestments.com

Website: www.neiinvestments.com

ESG/SRI products or services: Fixed Income, Income Equity, North American Equity, Global Equity, Balanced Funds, Alternatives, and Impact Funds. Sustainable Intelligence Consulting services

Year ESG/SRI products or services first offered: 1986

Philosophy/style: NEI applies multiple and complementary responsible investment approaches at the firm and fund level to help investors achieve their objectives. RI approaches applied at the fund level are exclusionary screening, ESG evaluations, thematic investing, and impact investing. Our stewardship program, made up of proxy voting and corporate engagement, as well as our policy work, applies more broadly to our entire investment portfolio.

PICTET ASSET MANAGEMENT

Contact: François Forget, Head of Distribution – Canada

Address: 1000 de la Gauchetière West, Suite 3100, Montreal, QC, H3B 4W5 PH: 514-518-8587

Email: fforget@pictet.com

Website: www.am.pictet

ESG/SRI products or services: Positive tilt: Absolute Return Fixed Income (ARFI); Asia Equities ex Japan; China Equities; Chinese Local Currency Debt; Digital; Emerging Markets; Family; Global Bonds; Global Fixed Income Opportunities; Global High Yield; Japanese Equity Opportunities; Premium Brands; Quest AI-Driven Global Equities. Best in class: Emerging Local Currency Debt; Global Emerging Debt; Emerging Debt Blend; Positive Change; Quest Europe Sustainable Equities; Quest Global Sustainable Equities. Positive impact: Biotech; China Environmental Opportunities; Clean Energy Transition; Climate Government Bonds; Global Environmental Opportunities (GEO); Global Megatrend Selection (GMS); Global Sustainable Credit; Global Thematic Opportunities (GTO); Health, Human, Nutrition, Regeneration, Robotics, Security, Smart City, Timber, Water. ESG

integrated: All other strategies

Year ESG/SRI products or services first offered: 1995

Philosophy/style: A global leader in environmental and sustainable strategies, responsibility is central to our way of thinking. We systematically integrate ESG into all investment processes and expect issuers to respect planetary boundaries and international standards on governance, human rights, and ethical business practices.

STEWART INVESTORS

Contact: Hugh Tancred, Head of Institutional Distribution, Americas Address: 10 East 53rd Street, Level 21, New York, NY, 10022

PH: 646-656-6030

Email: hugh.tancred@stewartinvestors.com

Website: stewartinvestors.com

ESG/SRI products or services: Stewart Investors manages Worldwide, Emerging Markets, Asia-Pacific, European, and Indian Subcontinent equity investment strategies, available as pooled vehicles or segregated mandates. All of these strategies invest explicitly in businesses contributing to, and benefiting from, sustainable development.

Year ESG/SRI products or services first offered: Stewart Investors traces its history back to the Scottish American Investment Trust, which was established in Edinburgh in 1873. The first Stewart Investors strategy run according to our core philosophy (taking a long-term approach to investing in highquality companies with strong stewardship) was launched in 1988. The investment team has been managing portfolios explicitly dedicated to sustainable development since 2005.

Number of ESG/SRI Canadian pension fund clients: We do not currently have any Canadian pension fund clients. Our Canadian client base is made up of family offices and foundations/charities.

Philosophy/style: We are long-term equity investors with a focus on stewardship and engagement. We take a bottom-up, benchmark-agnostic approach to stock

selection. We only invest in high-quality companies that contribute to, and benefit from, sustainable development.

STONEBRIDGE FINANCIAL

Contact: Angela Valdes, Vice President

Address: 20 Adelaide Street East, Suite 1201, Toronto, ON, M5C 2T6

Phone: 416-364-3001

Email: AValdes@Stonebridge.ca

Web: Stonebridge.ca

ESG/SRI products/services: Among Stonebridge Financial’s various strategies, it launched Canada’s first infrastructure private debt fund in 2012 (and its second in 2014) focused on social infrastructure and renewable power sectors, which provide tangible exposure to ESG-oriented investments, including Indigenous-owned projects. Originally designed in partnership PPP Canada and a pension consultant, Stonebridge Infrastructure Debt Fund I (SIDF I) raised over $200 million in institutional investor commitments, followed by SIDF II which grew to nearly $600 million – notably, these investment grade funds averaged 38% exposure to projects with Indigenous investments. As part of Stonebridge Financial’s 25th anniversary, its third fund (SIDF III) will be launched in early 2025 with a similar focus, with targets of $1 billion of capital commitments and at least 30% exposure to Indigenous projects. Year SRI products or services first offered: 2012

Clients: Stonebridge Financial manages and administers investments on behalf of Pension Plans, Labour Unions, Insurance Companies, Banks, Municipalities, Foundations/Endowments, Universities, Government Entities, Other Managers, as well as Corporate and Other Institutional Investors. Co-Investment opportunities for investors as well as Subadvisory Services for other managers are also available.

Philosophy/style: 100% focused on private debt investments across infrastructure, renewable power, healthcare, real estate and corporates, Stonebridge Financial has been an early adopter and ongoing

promoter of environmentally sustainable and socially responsible finance since the firm’s founding a quarter century ago. A UN PRI signatory, recent industry awards received by the firm and its leadership, include from: Clean50 (Lifetime Achievement Award), Canadian-Council of PPPs (Merit Award), the Indigenomics Institute (10 to Watch), and the First Nations Power Authority (Indigenous Allyship).

SUN LIFE GLOBAL INVESTMENTS

Contact: Anne Meloche, Head of Institutional Business

Address: 1 York Street, Toronto, ON, M5J 0B6

PH: 514-347-6137

Email: anne.meloche@sunlife.com

Website: slgiinstitutional.com

ESG/SRI products or services: Net-zero glidepath solutions; sustainability-focused listed infrastructure

Year ESG/SRI products or services first offered: 2019

Philosophy/style: As a manager of managers, our responsible investing activities are primarily focused on sub-advisor selection and ongoing monitoring of their responsible investing practices. Our assessments focus on three key pillars: firm-wide commitment, implementation of ESG considerations in their strategy, and approach to active stewardship.

T. ROWE PRICE

Contact: Lauren Bloom, Head of Canada

Address: Suite 4240, 77 King Street West, Toronto, ON, M5K 1G8

PH: 647-355-6887

Email: lauren.bloom@troweprice.com

Website: www.troweprice.com

ESG/SRI products or services: T. Rowe Price

Global Impact Equity Strategy, T. Rowe Price

US Impact Equity Strategy, T. Rowe Price

Global Impact Credit Strategy

Year ESG/SRI products or services first offered: 2020

Philosophy/style: Our Impact investment approach is defined by its dual mandate, which simultaneously seeks both benchmark outperformance and positive environmental and social impact by investing in durable, growing businesses with measurable impact criteria.

TD GLOBAL INVESTMENT SOLUTIONS

Contact: Mark Cestnik, Managing Director, Head of Global Institutional Distribution

Address: 161 Bay Street, 30th Floor, Toronto, ON, M5J 2T2

PH: 416-307-5878

Email: mark.cestnik@tdam.com

Website: www.td.com/ca/en/globalinvestment-solutions

ESG/SRI products or services: TD Asset Management Inc. (TDAM) offers the following ESG-focused funds: TD North American Sustainability Equity Fund; TD North American Sustainability Balanced Fund; TD North American Sustainability Bond Fund; TD Emerald Low Carbon Global Equity Index Non-Taxable Investor Pooled Fund Trust; and TD Emerald Low Carbon/Low Volatility Global Equity Pooled Fund Trust. For details, refer to the “ESG-Focused Funds” section of TDAM’s Sustainable Investment Report 2023, which is available on our public website: www.td.com/ content/dam/tdgis/document/ca/en/pdf/ resource-pdf/reports/annual-reports/Annualsustainability-report-EN.pdf. Additionally, for institutional clients who set their own environmental objectives and targets, TDAM can customize solutions to support their ESG-related investment objectives.

Year ESG/SRI products or services first offered: 2020

Number of ESG/SRI Canadian pension fund clients: 9 institutional ESG clients as of June 30, 2024

Philosophy/style: At TDAM, we believe that considering material ESG factors is fundamentally aligned with our overall philosophy of seeking investments in

sustainable long-term assets through a risk-managed process. Please refer to TDAM’s Sustainable Investing Approach: www. td.com/content/dam/tdgis/document/ca/en/ pdf/resource-pdf/policies-and-frameworks/ Sustainable-Investing-Approach-EN.pdf.

TELUS HEALTH INVESTMENT MANAGEMENT LTD.

Contact: Alana Dubinski, Chief Compliance Officer, Head of ESG Strategy

Address: 25 York Street, Toronto, ON, M5J 2V5 PH: 416-527-2859

Email: alana.dubinski@telushealth.com

Website: www.telus.com/en/health?linkname =Health&linktype=ge-supernav

ESG/SRI products or services: ESG Education for Committees and Members; ESG Policy Development and Investment Beliefs; ESG Manager Research; Proprietary ESG Ratings; Climate Scenario Analysis Modelling; ESG Reporting; ESG Dashboard; ESG Governance, Regulatory and Strategy Consulting; ESG Organizational Integration and Operationalization Consulting (TELUS Environmental Solutions)

Year ESG/SRI products or services first offered: 2018

Number of ESG/SRI Canadian pension fund clients: 17

Philosophy/style: As UN PRI signatories since 2018, we have adopted the UN PRI’s definition of ESG integration – meaning the systematic and explicit inclusion of material ESG factors into investment analysis and investment decisions. When working with clients, our approach to ESG can be summarized as follows: Adaptable: We recognize clients have unique requirements and are at various stages of ESG maturity. We will work with clients and other stakeholders to meet them at their ESG maturity level. Practical: As consultants our goal is to simplify decision-making for clients and help them achieve their desired outcomes. ESG integration should be feasible and reflect the specific circumstances and nature of the plan. Evolutionary: The ESG landscape is evolving quickly – our approach and solutions will be anticipatory and reflect best practices.

VAN BERKOM GLOBAL ASSET MANAGEMENT

Contact: Andy Kong, Senior Director, Institutional Markets

Address: Suite 2510, 600 de Maisonneuve Blvd Street West, Montreal, QC, H3A 3J2

PH: 514-985-0909

Email: akong@vanberkomglobal.com

Website: www.vanberkomglobal.com

ESG/SRI products or services: Canadian Small Cap Equity Strategy; US Small Cap Equity Strategy; US Small-Mid Cap Equity Strategy; Global Small Cap Equity Strategy; International Small Cap Equity Strategy

Year ESG/SRI products or services first offered: 2022

Number of ESG/SRI Canadian pension fund clients: 16

Philosophy/style: Governance issues have been at the heart of our investment decisions since our company’s founding in 1991. Although we have always maintained the same investment process, we must adapt it to market realities. Environmental and social issues are more than ever at the forefront of the news and the political agenda. As with all changes, they generally bring their share of risks and opportunities. We therefore consider these new risks and opportunities in our due diligence and recurring monitoring processes, while responding to the ever-increasing demand for documentation and information on our approach.

VANCITY INVESTMENT MANAGEMENT (VCIM)

Contact: Jeffrey Adams, Chief Investment Strategist and Director

Address: 183 Terminal Ave, 8th Floor, Vancouver, BC, V6A 4G2

PH: 604-318-3389

Email: jeffrey_adams@vancity.com

Website: www.vcim.ca

ESG/SRI products or services: VCIM Global Equity Fund, VCIM Global Small Cap Fund, VCIM Global Low Volatility Fund, VCIM Global Impact Fund, VCIM Canadian Equity Fund, VCIM Income Fund, VCIM Bond Fund, VCIM Short Duration Bond Fund

Year ESG/SRI products or services first offered: VCIM’s history in ESG/SRI dates back to 2001, when it first partnered with Renewal Partners to create Real Assets to launch a series of SRI mutual funds.

Number of ESG/SRI Canadian pension fund clients: 1

Philosophy/style: VCIM’s investment process integrates ESG analysis with in‐depth financial analysis to identify high-quality companies that have the potential to succeed in a world of evolving environmental risk, increased social expectations, and changing shareholder demands.

and

OTHER LIFE

“As a coach, it’s been so rewarding to see the camaraderie between the girls grow, and to see them have an outlet”

LEADING ON AND OFF THE PITCH

Jamil Jamal’s love of football gives him peace and clarity, and tests his leadership skills

JAMIL JAMAL was born to be a Manchester United fan. His father, growing up Tanzania, had chosen Man U, and after immigrating to Canada he dressed newborn Jamal in a red jersey.

Jamal’s love of football (or soccer) came from there. A lifelong fan, he saw his team win every trophy under the sun. He was quick to take up the game, too. Starting at a young age with his cousins, he played as an attacking winger in tournaments across the city.

Now Jamal plays in central midfield, a role focused on creativity, control, and leadership of the team. His position matches his professional life as a benefits consultant at People Corporation. When he plays pickup games on the weekend, football gives him a chance to unplug, relax, and spend a mandated 90 minutes away from his phone.

“Football is where I find I can actually block out everything, be in my element, and just be part of the sport that I’ve loved for so long,” Jamal says.

Jamal is a coach, too. Through his involvement in Toronto’s Ismaili community, he was given the opportunity to coach a girls’ football team. He says it’s been a deeply rewarding experience to help them grow and develop the love for football he was given by his dad. 7

Jamal’s preferred jersey number, an homage to players like George Best and David Beckham

Number of trophies won by Manchester United’s Paul Scholes, Jamal’s favourite player

Record number of times Manchester United have won the English Premier League

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