Video | Invest with impact thanks to IDEO+ Responsible
It’s one thing to talk about responsible investment, but putting it into practice is even better. One way Kaleido does this is through the IDEO+ Responsible education savings plan. Does it produce tangible results?
Jean-Stéphane Parent, Vice-President and Chief Investment Officer answers your questions.
Even before its IDEO+ range of individual Registered Education Savings Plans (RESPs) came on the scene in 2022, Kaleido had adopted a sustainable investment policy, formalizing its desire to invest in sustainable businesses and projects. The IDEO+ Responsible portfolio enhances this idea of creating long-term value for society by seeking an even more tangible impact.
So, for the sake of consistency, certain sectors are excluded from all our IDEO+ products, such as military or offensive weaponry, i.e. weapons primarily used to cause injury to individuals, and tobacco, an industry which is harmful to society and children.
The advantages of IDEO+ Responsible
The IDEO+ Responsible plan is ideal for families who want to take the concept of impact investing a step further. For this product, our portfolio managers actively seek additional strategies to reduce the carbon footprint of our investments. All our portfolio managers are signatories to the Principles for Responsible Investment (PRI) and strive to have a positive impact on climate change and children’s well-being and education.
For example, the IDEO+ Responsible plan will exclude investments in fossil fuels and instead favour investments in energy transition in order to minimize the plan’s impact on the environment. In addition to their benefits for the planet, some projects offer an attractive return for the investor.
Following the Sustainable Development Goals (SDGs)
When we talk about prioritizing certain sectors, we sometimes mean those linked to the Sustainable Development Goals (SDGs) promoted by the United Nations. These principles have been put in place to favour certain investments that are beneficial to the planet or to society in general. In all, 5 of the 17 UN goals are targeted and measured with IDEO+ Responsible.
How do we measure the impact of our portfolios?
It is now possible to quantify the impact of our portfolios and know the concrete results of our decisions. “At Kaleido, we set goals in terms of responsible investment, and we follow them!” says Jean-Stéphane Parent.
You can read more about Kaleido’s commitment in our Sustainable Investment Report 2024.
1. Calculate the percentage of green or sustainable bonds
First, out of our total investments, we look at the proportion of our assets invested in green1 or sustainable2 bonds. We then systematically calculate this percentage and aim to increase it over time.
2. Measure the carbon footprint
Second, we calculate the carbon dioxide emissions generated by the various companies in which we invest. The results are combined to give the carbon footprint of all IDEO+ Responsible portfolio investments and, where possible, of the total assets in our plans.
3. Set an ambitious goal
Third, we aim at an ambitious goal. We are working to ensure that the IDEO+ Responsible portfolio generates an overall carbon footprint that is 40% lower than our benchmark:4 a target we can surpass!
It’s your turn to invest with impact
Kaleido proves that it is possible to invest in a concrete, measurable way that has a positive impact not only on your return, but also on the society of tomorrow. Make an appointment with one of our advisors to see how the IDEO+ Responsible education savings plan can meet your needs.
Definitions:
1. A green bond is a debt security issued to finance ecologically sustainable projects that have a positive impact on the environment.
2. A sustainable bond is any type of bond that promotes positive environmental and social benefits.
3. A carbon footprint measures a portfolio’s exposure to carbon-intensive companies. It is expressed in tons of CO2 emissions per million US dollars of revenue. This is the measure recommended by the Task Force on Climate-Related Financial Disclosures (TCFD).
4. Calculated unweighted average based on data from each portfolio manager.
