
Case Studies
Whether through direct engagement with portfolio companies and external managers, proxy voting or collaborative engagement with our peers, we aim to use our influence to promote strong ESG practices, particularly in our ESG priority areas, because we believe that companies with strong governance practices and more climate-friendly and inclusive strategies are better positioned to succeed.

Board structure, diversity, and independence
Bringing Diverse Perspectives to Our Portfolio Company Boards
In 2021, IMCO made a direct equity investment alongside Kohlberg & Company in OB
Hospitalist Group (OBHG). OBHG is the largest dedicated obstetric hospitalist
group in the United States, providing 24/7 onsite obstetric coverage for hospitals
through OB/GYN clinicians. As part of the investment, IMCO and Kohlberg identified
greater board diversity as a priority. As a result, IMCO appointed a highly
qualified senior female executive to the board of OBHG. She brings decades of
healthcare industry experience and a diverse perspective that will support and
improve decision-making at OBHG.

Corporate Governance
Building Strong Sustainability Strategies
Since 2018, IMCO has been an investor in euNetworks Group Limited, a European
bandwidth infrastructure company. The company owns and operates fibre networks in
17 cities as well as a long-haul network spanning 15 countries. Since our
investment, IMCO has engaged with our co-shareholders and the board to elevate the
ESG agenda at the company. This includes integrating regular reporting and robust
discussion on ESG topics at board meetings, supporting management’s work on carbon
footprinting, and deepening the company’s commitment to diversifying its talent
base, including at the senior management level. Notably in 2021, Paula Cogan
joined as President and Katherine Alexakis joined as Chief Financial Officer.
Cementing the company’s commitment to its ESG agenda, the company issued a
sustainability-linked loan with terms linked to the achievement of specific
environmental and diversity targets.

Executive Compensation
Holding Companies Accountable for Performance Through Proxy Voting
COVID-19-related pay adjustments led to an increase in the overall number of votes
against say on pay resolutions. In the case of RioCan Real Estate Investment
Trust, multiple one-time awards granted to the trust’s CEO in the last few years
resulted in a significant misalignment between pay and performance (relative to
RioCan’s peers) over a three-year period. As such, we voted against the trust’s
say on pay resolution at the 2021 annual meeting. The message from shareholders
was clear, with 76% of votes cast against the resolution. In October 2021, RioCan
announced significant changes to its executive compensation program, including an
end to special awards to named executive officers.

Energy
Partnering with Climate Change Pioneers
In 2021, IMCO was one of the anchor investors in the Brookfield Global Transition
Fund co-led by Mark Carney, Brookfield Vice Chair, former governor of the Bank of
Canada and Bank of England, and UN Special Envoy for Climate Action and Finance.
The fund targets investment opportunities that reduce energy consumption and
greenhouse gas emissions and increase low-carbon energy capacity and sustainable
solutions. The fund aims to produce both strong risk-adjusted returns and positive
environmental outcomes. The investment supports IMCO’s wider infrastructure
strategy, providing increased exposure to clean energy assets and supporting
IMCO’s net zero commitment.

Climate Change
Supporting Innovation in Sustainable Building Materials
WPT Capital Advisors, an IMCO real estate partner, is piloting the use of a
concrete alternative in an industrial development project in our portfolio. PrimX
is a jointless composite floor that incorporates steel fibres and proprietary
expansive material to require significantly less concrete. PrimX estimates it will
avoid 3.3 million pounds of carbon emissions, which is equivalent to taking 324
passenger vehicles off the road for a year. With successful implementation, WPT
will adopt the product as an alternative to traditional concrete in future U.S.
industrial development projects.