Canadian foundations are pooling their investment assets to fuel a public ESG competition, sounding a call for a more credible market
Today marks the launch of the Great Canadian ESG Championship, a Dragon’s Den-style competition where more than 55 investment managers across the country will battle to win part of a $75 Million investment mandate.
Driven by eight Canadian institutional investors, the goal of the championship is not only to identify gold-standard approaches to responsible investing but also to publicly promote those who demonstrate them, with the aim of inspiring increased transparency and best practices in the market.
Green, sustainable and responsible fund offerings have grown exponentially in the last few years with more assets under management and more demand from asset owners than ever before,” says ESG expert Milla Craig, founder of Millani and a key partner in the project.”
Indeed, according to Bloomberg, the global asset management industry earned $1.8 billion in fees from sustainable funds in 2021, up approximately 40% from the previous year. While asset managers have a strong incentive to promote ESG offerings, investors are finding it increasingly difficult to assess and compare quality.
For asset owners like us, navigating this booming responsible investment market is a venture into the wild west. Scratching below the label is as critical as it is challenging, because the risk of greenwashing is real” says Eric St-Pierre, Executive Director of the Trottier Family Foundation, the founding investor behind the ESG Championship. “The Great Canadian ESG Championship will shine a light on the responsible investment choices available to Canadians, separating the best from the rest.”
Inspired by a similar event in the UK, the Trottier Family Foundation and its co-investors (the Concordia University Foundation, the Skagit Environmental Endowment Commission, the Foundation of Greater Montreal, the Sitka Foundation, the Consecon Foundation and two private trusts), will invest a total of $75M with asset managers who demonstrate the most robust ESG investment approaches within three asset classes: equity and/ or fixed income, alternatives, and multi-asset.
ESG and finance experts, Millani and Normandin Beaudry, have signed on to independently verify the selection process and support the co-investors in identifying a shortlist of the finalists in each category. The shortlist will be announced in April and finalists are then invited to present their proposals at a public event on June 2nd before a panel of experts and a live audience.
Winners will be awarded in the fall once formal due diligence is completed. Co-Investors will also compile the lessons of this competition into a “State of the Industry” report, highlighting opportunities to increase transparency and credibility in the ESG fund management market.
Through the ESG Championship, we’re creating the rigour and doing the heavy lifting needed to help other asset owners navigate this market and make decisions aligned with their values,” says St-Pierre. “That’s how we collectively create impact.”
Visit www.esgchampionship.ca to learn more and subscribe for updates to follow the competition.
Great Canadian ESG Championship Timeline
Asset Manager Short-List Announcement
May 11
Public Competition
June 2
Final Winners Announcements
Fall