Impact investments provide capital to initiatives that intentionally and measurably address the world’s most pressing environmental and social challenges. These investments generate an appropriate, risk-adjusted financial return and are reported on annually.
Impact investing not only supports our vision to be a catalyst for a sustainable society, but also broadens the returns of our investments beyond purely financial gains and into the realm of social and environmental benefits. The Co-operators areas of focus for impact investments are:
- Climate change
- Community development
- Health and wellness
- Food, agriculture and natural resources
In 2017, our investment management company, Addenda Capital, launched the Addenda Impact Fixed Income Pooled Fund – the first of its kind in Canada – which now manages impact investments totaling $45.6 million in assets. We also surpassed our 2015-2018 target to invest 6–10% of our invested asset portfolio into impact investments. Of our $9.44 billion in invested assets, a total of 13.1% is now invested in securities that have both compelling investment returns and a measurable, positive environmental and/or social impact.