Engaging companies to combat climate risk.

In VCIM’s view, companies that contribute to climate change not only harm the natural environment, they also take on risks that can threaten their ability to deliver strong financial results over the longer term. For example, companies in the real estate sector are particularly vulnerable to an increase in the frequency and severity of hurricanes and flash flooding, which can increase insurance costs and damage critical infrastructure. One aspect of VCIM’s climate risk strategy is to persuade companies to disclose their vulnerability to climate risk and the measures they are taking to mitigate that risk.

Engagement

Every year, VCIM encourages companies to participate in the Carbon Disclosure Project, which includes an annual questionnaire addressing climate risk strategies, governance structure and emission goals. VCIM has recently encouraged disclosure from Pembina Pipeline, Peyto Exploration, Tourmaline Oil, Veresen, Facebook, H&R REIT, Chartwell Retirement Residences and RIOCan REIT.

Outcome

A standout success story in 2016 came with H&R REIT’s agreement to provide its first report to the Carbon Disclosure Project. VCIM looks forward to similar reporting by other REITs as well as companies we are engaging in the energy and other industries.

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