Montreal, November 2, 2021 – The Foundation of Greater Montreal (FGM) unveiled today its responsible investment strategy. This new policy integrates environmental, social, and governance (ESG) criteria and equity, diversity and inclusion (EDI) standards, as well as active ownership, impact investing and climate risk management. It is now part of FGM’s updated investment policy. It also includes a 45% reduction target in carbon emissions from its asset portfolio by 2030. Its end goal is to achieve carbon neutrality by 2050. 

“At FGM, we believe that all our assets must be aligned with our values. They are an important lever to help us better achieve our mission. With this responsible investment strategy, our goal is to position ourselves at the forefront of the best practices. Not only in the philanthropic community, but also within the financial sector as a whole. As the climate crisis grows ever more threatening, and as our society finally begins to realize the significance of justice, equity, diversity, and inclusion, each of our institutions must demonstrate renewed leadership. The Foundation of Greater Montréal is answering the call,” explains Karel Mayrand, FGM’s President and CEO.

FGM takes action on climate

FGM endorses the Paris Agreement targets as a climate risk management framework. The Foundation recognizes the scientific consensus on climate change, as well as the resulting physical and financial risks. It also recognizes that these risks will impact its investments and future returns. This reform is therefore necessary to protect FGM’s long-term capacity to support the Greater Montreal community. In addition to targeting a 45% reduction in GHG emissions from its portfolio by 2030 and carbon neutrality by 2050, FGM will also encourage its fund managers to adopt the best practices recommended by the Task Force on Climate-Related Financial Disclosure (TCFD), which include divulging a company’s climate action plans and indicators such as carbon footprints. All asset classes held by FGM will also be required to incorporate ESG factors by 2024 at the latest.

“The identification, monitoring, and integration of responsible investment criteria into the management of the Foundation’s portfolio will also lead to new investment opportunities, which will increase support for collective efforts to address the most pressing local and global challenges.   This is why FGM will formally integrate ESG criteria into all of its assets by 2024. We will be putting in place an investment portfolio of high-quality managers according to ESG ratings,” adds Lise Charbonneau, FGM’s Vice-President of Administration, Finance and Investments.

Justice and reconciliation, equity, diversity and inclusion

Furthermore, the Foundation will establish investment and active ownership practices that are aligned with the United Nations Global Compact on Human Rights, as well as the United Nations Declaration on the Rights of Indigenous Peoples, with a particular focus on Reconciliation and respect for the rights of Canada’s First Peoples. Recognition of diversity, equity, and inclusion are at the heart of FGM’s values and mission. The Foundation believes this commitment leads to better ideas and improved long-term investment results. That is why, in its role as an investor, FGM will promote the best practices in human rights and Reconciliation, justice, equity, diversity, and inclusion in all its forms. FGM fund managers will also be evaluated against these criteria.

Finally, the Foundation recognizes that impact investing is an emerging sector. As new opportunities emerge, FGM will redirect a portion of its assets to these strategies. Impact investing will allow FGM to contribute to advancing the social and environmental solutions that our society needs. Through investments that will also generate attractive financial returns, it will also support the emergence and development of sustainable economic sectors and local managers from diverse backgrounds. The Foundation is therefore committed to making its first impact investment by the end of 2023. Thereafter, and over a five-year period, FGM will consider opportunities to allocate additional amounts to these types of investments. A ceiling of 5% of its assets has been decided upon for the time being. 

The Foundation of Greater Montreal’s new responsible investment strategy (original French version currently being translated) is available on FGM’s website, along with its entire, updated investment policy. 

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Source: Foundation of Greater Montreal
For more information: Simon Delorme, Project Manager for Communications, Public Relations and Social Media – (514) 866-0808, ext. 107 / simon.delorme@fgmtl.org 

About the Foundation of Greater Montreal
The Foundation of Greater Montreal (FGMtl) helps individuals, families and organizations to get involved and support their community by creating funds for selected causes in all sectors. In addition to publishing the Vital Signs of Greater Montreal report, FGM manages the assets of over 700 funds, guides donors and supports community charitable organizations. A member of the Community Foundations of Canada, a network of 191 community foundations, FGM promotes philanthropy as a major driver for well-being in Greater Montreal. Website: fgmtl.org