Our approach to responsible investing
We understand your desire to make a difference in the world. For our funds that incorporate ESG factors as part of their investment strategy, we consider responsible investing as a component of the investment analysis.
MD Financial Management (MD) understands the importance of being able to invest in line with your values. Canada’s physicians have long been passionate about a range of environmental, social and governance (ESG) issues — and MD has a history of responsible investing going back to 1969 when we excluded investments in companies that manufacture tobacco or tobacco-related products from MD funds.
Why ESG considerations are important
In alignment with the values of our clients, we consider ESG criteria when reviewing investments for funds that incorporate ESG factors as part of their investment strategy.
What is ESG?
Environmental
How well does a company perform as a steward of the natural environment?
Criteria may include:
- carbon footprint and climate change
- waste and water pollution
- biodiversity and deforestation
Social
What is a company’s social impact?
Criteria may include:
- working conditions including slavery and child labour
- workers’ health and safety
- employee relations and diversity
Governance
Does a company have good corporate governance?
Criteria may include:
- executive compensation and tax strategies
- ethical business practices
- board diversity and structure
Our process
To create long-term value for physicians and their families, we consider ESG factors into our active investment process — from assessing investments to engaging with individual companies. MD's approach to responsible investing is based on four pillars.
Our clients’ values
We take the time to listen to what’s important to you and weigh different opportunities that align with the values of our client base.
ESG factors
As dedicated active managers, our investment teams consider a broad range of ESG factors in their investment processes — and have done so for many years. Rather than taking a passive approach to responsible investing, we conduct screens beyond the analysis of our asset managers as part of our investment process.
Engaging with asset managers
As stewards of your capital, we prefer constructive engagement with our asset managers and the companies that we invest in. As such, we consider ESG into our asset manager monitoring as part of our annual stewardship reporting diligence and include an ESG monitoring and engagement program across certain funds’ holdings. We’ve chosen to have a voice at the table of the companies we invest in through proxy voting. This allows MD, on your behalf, to advocate for improvements in corporate management on key issues that require shareholder votes.
Collaboration
We are a signatory of the UN-supported Principles for Responsible Investment, and a member of Canada’s Responsible Investment Association. We collaborate with other organizations to advance responsible investing practices and to help shape policy to address a range of societal challenges.
MD Fossil Fuel Free FundsTM
MD offers Fossil Fuel Free FundsTM, a powerful way to address your environmental concerns by seeking to avoid investments in companies involved in extracting, transporting or processing fossil fuels.
MD’s responsible investing partnerships
Principles for Responsible Investment (PRI) Association
The United-Nations-backed PRI is one of the world’s leading proponents of responsible investing. Its mandate is to understand the investment implications of ESG factors and to support the integration of these factors into investment and ownership decisions.
Responsible Investment Association (RIA)
The RIA is Canada’s industry association for responsible investment. RIA members include asset managers, asset owners, advisors and service providers who promote responsible investment in Canada’s retail and institutional markets.
Get started today
Connect with an MD Advisor* today and start aligning your investments with your values.
Talk to an MD Advisor** MD Advisor refers to an MD Management Limited Financial Consultant or Investment Advisor (in Quebec).