Environmental, Social and Governance (ESG)
At Greystone, ESG factors are incorporated into our existing investment process as one of several categories of risk factors included in our assessment for both risk and return for a company or security. ESG risks are reviewed on an asset-by-asset basis and at the aggregate portfolio level. The relative importance of ESG factors compared to other traditional business risks for a security will depend on whether these factors have a material impact on cash flows and/or the ability to execute the long-term growth strategy. ESG has been integrated into decision-making in each of our Public Equities, Fixed Income, Infrastructure, Real Estate & Mortgage portfolios.
In December 2016, Greystone became a signatory to the United Nations-supported Principles for Responsible Investment (“PRI”). PRI commits asset owners and managers with collective assets of $60 trillion to advocate for and integrate considerations for ESG factors in the investment management process. Through our PRI membership, we recognize the importance of ESG integration in contributing to investment excellence and stable, long-term returns. Greystone formalized its ESG approach across all asset classes in 2015-16.