Value Creation
We use our influence and governance rights to drive sustainable progress and long-term value creation at our portfolio companies.
Being a responsible steward of assets goes beyond providing capital. We believe in sharing our expertise to support our portfolio companies and promoting strong sustainability practices through direct engagement and proxy voting. We amplify our reach and voice through select partnerships, coalitions and policy engagement.
Engagement
Our engagement activities aim to encourage robust governance practices, promote transparency and support companies to build their internal ESG expertise. We focus on real-world outcomes that can increase the value of our investment and benefit society, such as greenhouse gas emissions, board governance, and health and safety.
Engagement takes time to yield results and we believe it is most successful when we establish a constructive relationship.
IMCO's Stewardship Guideline describes our approach for engaging with entities in which we invest on material governance and sustainability issues.
"We are not just investors, we are stewards of high-quality assets. We support our portfolio companies to develop their sustainability goals and create value across the portfolio using sustainability as a source of competitive advantage."
- John Di Re, Managing Director, Fundamental Equities
Case Studies
euNetworks
IMCO has been an investor in euNetworks, a leading European bandwidth infrastructure company, since 2018. The company owns and operates fibre networks in 17 cities. We identified sustainability as a priority value lever and engaged with the management team and co-shareholders to elevate the ESG agenda at the company. In 2022, euNetworks joined the Climate Pledge, committing to being net zero by 2040 and setting science-based emission reduction targets across scopes 1, 2 and 3. In 2023, the company developed its inaugural sustainability policy. It also secured a €760 million sustainability-linked loan, through which meeting specific sustainability targets will lower the interest rate.
WPT Industrial REIT
As part of our regular dialogue with WPT Capital Advisors, a key U.S. partner, we shared our sustainability goals and need for more granular data collection and tenant engagement. Building owners in the industrial sector have historically faced barriers in collecting and tracking tenant utility data, since utility costs are the tenant’s responsibility. WPT invested in a service to obtain real-time electric, gas and water consumption data used to identify capital expenditure projects. This model provided insights into whole building performance. In addition, greater awareness of individual assets’ energy and water consumption allows building owners to establish benchmarks, develop strategies to reduce energy and emissions, optimize costs and increase the durability and resilience of our sites.
Ownership Works
In 2023, IMCO became the first Canadian institutional asset manager to join Ownership Works as a founding investor partner. Ownership Works is a non-profit organization working to implement broad-based employee ownership programs.
Rising inequality is a key theme in our World View. Through our research and networks, we recognize that broad-based employee ownership can create significant opportunities for employees to build wealth and improve business performance.
Through this partnership, IMCO collaborated with an infrastructure portfolio company on an employee ownership program, and several of our external partners have committed to the model.
Proxy Voting
Proxy voting is an important tool for shareholders of public companies to exercise their rights, hold management accountable and express their views.
At IMCO, we vote according to our Proxy Voting Guideline, which outlines our expectations on governance, compensation, shareholder rights and sustainability issues. We also evaluate management resolutions and shareholder proposals on a case-by-case basis, recognizing jurisdictional differences.
We are transparent about our proxy voting activity. We make our voting intentions public ahead of annual meetings and maintain a public database of our voting activities.
Our Proxy Voting Record
Our searchable database provides an account of our voting, rationale for when we vote against management and all shareholder proposals.2023 Highlights
Collaborating with Industry Peers
Partnering with fellow investors to engage companies, policymakers and the broader financial industry on sustainability matters is a key component of stewardship. We recognize the value of collective action on behalf of our clients. It amplifies our voice and is an efficient use of our resources.
IMCO is part of several coalitions and initiatives seeking to advance sustainability goals.
Climate Engagement Canada (CEC)
Created in 2021, CEC is modelled on Climate Action 100+ with a goal of engaging Canadian high-emitting public companies on climate issues. There are 41 companies on its focus list.
IMCO was a founding participant and has engaged with companies like Enbridge Inc., Fortis Inc., and Waste Connections Inc.
Visit the CEC website30% Club
IMCO joined the 30% Club Canada Chapter in 2017. As a member, we call on and collaborate with companies to achieve and exceed the 30% gender diversity target, and to enhance the presence of other underrepresented groups on their boards and executive management teams.
