This year’s focus was on further integrating ESG considerations into the investment processes of all of our asset classes. Our RI group has proven its value, making the ESG perspective relevant to our asset classes and becoming an integral part of PSP’s investment decision-making processes and ownership practices. In fiscal year 2018, the group also introduced an innovative framework for helping us objectively evaluate and benchmark the ESG practices of external managers and general partners.
Guided by our RI group and asset classes, PSP has taken a strong stance on key ESG issues. Among them, climate change. We believe that climate change is a long-term structural trend that will have a material impact on investment risks and returns, across different sectors, geographies and asset classes. As a long-term investor, we must proactively address the reality of climate change risks and opportunities as part of our investment decisions.
In this year’s RI report, we shine a light on five recurring ESG themes from fiscal year 2018, explaining why they matter to us as investors and how we took action on them in private markets, public markets and from a best practice perspective. In reading about them, I trust that you will also gain an appreciation of the knowledge and resourcefulness of our people, and of our strong culture of listening, learning and speaking up when we need to. We challenge ourselves to be bold and act decisively on opportunities to promote long-term investment growth.
President and Chief Executive Officer