Sustainable Investing On this page Our Approach to Sustainable Investing Sustainable investing involves an analysis beyond short-term profits, favoring instead factors that support long-term value creation. Consistent with our investment philosophy as long-term investors in high-quality businesses, we integrate material Environmental, Social and Governance (ESG) factors into fundamental investment analysis. We believe a company’s ESG policies and track record are likely to be a helpful lens through which to gauge quality, furthering our ability to invest in the most sound companies. Sustainable investing at Jarislowsky Fraser involves the following: Integrating ESG risks and opportunities into investment decisions; Taking a long-term view; Being engaged investors and demanding high-quality business practices. Our approach is pragmatic and ultimately about identifying and investing in quality businesses, which is core to our mission of delivering growth of capital in a prudent manner. Our Principles As the world around us changes and issues that impact it continue to evolve, we use the following principles to guide our investment process: Integrate the analysis of material ESG factors in our investment decisions. At Jarislowsky Fraser, ESG information is integrated into our bottom up fundamental analysis. ESG factors that are material to the investment prospects are discussed in industry reviews, as well as covered in individual company reports. Proprietary tools, such as our Business Practice Scorecard and Portfolio ESG Scorecard, ensure this is done systematically. Take an engaged ownership approach. Acting as long-term stewards is our fiduciary duty and can be an opportunity to add value for shareholders. We seek constructive engagement with company management, and in some cases with Boards of Directors, on material business concerns including ESG issues. We believe that Jarislowsky Fraser has historically been viewed as a credible shareholder from whom managements seek counsel. This is further reinforced in our proxy voting decision-making: Proxy voting is fully integrated into our investment process; Our global investment team meets to consider each proxy; Decisions are made in-house by the investment professionals. Encourage disclosure of information that is relevant to the analysis of material ESG factors by companies and stakeholders where commercially reasonable. We value management candor and believe that transparency and accountability contributes to the quality and ethics of a company and can drive excellence. Collaborate with other organizations in order to advance sustainable investment practices for the benefit of all stakeholders. See below for a listing of key associations. Read our Sustainable Investment Policy Values-Based Mandates We incorporate ESG considerations into quality assessments across all of our mandates. For clients with specific values-based restrictions, or other investment policy considerations, Jarislowsky Fraser offers a tailored approach to meet their needs. We manage approximately $3 billion on behalf of clients with a variety of unique values based restrictions. Illustrative mandates include “low carbon” and “religious values.” Accountability and Transparency Core to our approach is a belief that accountability and transparency drive outperformance. Consistent with that philosophy, we would highlight the following: Our Climate-Related Financial Disclosures report: Jarislowsky Fraser’s Task Force on Climate-related Financial Disclosures (TCFD) 2021 report provides a deeper understanding of how we are identifying, assessing and managing potentially material climate-related issues within the context of our clients’ portfolios. We are a signatory of the PRI, an international network of investors working together to put the six Principles of Responsible Investment into practice. Click here to access a copy of our latest PRI Transparency Report on the PRI Website. Proxy Voting: Click here to access our latest Proxy Voting Record. For more information around our approach to proxy voting, please consult our Proxy Voting Policy and Procedures. We will work with clients to develop reporting according to their needs, which may include carbon footprint analysis as well as other ESG elements. Sustainable Investment Committee The firm has a Sustainable Investment Committee to assist with the coordination of sustainable investing activities and the development of ESG tools across the firm. Key Associations Principles for Responsible Investment: We are signatory to the PRI, an international network of investors working together to put the six Principles of Responsible Investment into practice. We were a featured speaker at the PRI 10-year Anniversary Series: Innovations for a Sustainable Financial System. Canadian Coalition for Good Governance: Stephen Jarislowsky co-founded the CCGG in 2002 to promote good governance practices in companies owned by its members. JFL CEO Maxime Ménard was appointed to the Board of CCGG in 2019 and serves on the Finance & Audit committee. CDP (Formerly Carbon Disclosure Project): In 2007, Jarislowsky Fraser became a CDP signatory to show support for increased corporate environmental public disclosure and behavior change. We believe that measuring, managing, and disclosing environmental indicators is essential to a company’s management of these as both material risks and opportunities. International Corporate Governance Network (ICGN): We are a member of the ICGN, an investor-led organisation that was founded in 1995 with the mission to promote effective standards of corporate governance and investor stewardship to advance efficient markets and sustainable economies worldwide. Institute for Governance of Public and Private Organizations: In 2005, Jarislowsky Fraser was a founding member of the IGOPP. The IGOPP is committed to improving governance in the private and public sectors. Sustainability Accounting Standards Board: Jarislowsky Fraser is a founding member of SASB’s Investor Advisory Group. SASB’s objective is to establish industry-specific accounting standards for material sustainability issues for use by U.S. publicly listed corporations and their investors. The Farm Animal Investment Risk & Return (FAIRR) Initiative: Jarislowsky Fraser became a member of the FAIRR Initiative in 2020. FAIRR’s mission is to build a global network of investors who are focused and engaged on the risks linked to intensive animal production within the broader food system. 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