Video | Responsible Investment at the Heart of our Mission
Responsible and sustainable investment is a concept that is increasingly present in the financial world.
But what does this actually mean, and how is it implemented at Kaleido? To answer these questions, Isabelle Grenier, President and CEO of Kaleido, discusses with Jean-Stéphane Parent, Vice President and Chief Investment Officer.
A Mission Aligned with Sustainable Investment
Kaleido’s mission is to help each child reach their full potential by guiding them through their journey to invent the society of tomorrow. Sustainable investment creates a favorable environment for children’s development, which is in line with this mission.
Kaleido supports projects and companies that improve society through good practices, in addition to contributing to education on sustainable investment. As a result, all of Kaleido’s assets are entrusted to managers who are signatories of the Principles for Responsible Investment (PRI), an initiative supported by the United Nations.
Application of ESG Criteria
At Kaleido, responsible investment is based on the integration of ESG (Environmental, Social and Governance) criteria and a sustainable investment policy, which it officially adopted in 2020. Accordingly, all scholarship plans managed by Kaleido apply exclusion filters to ensure that they do not hold shares in companies working directly or indirectly in certain industries whose activities or products and services are deemed harmful to human beings, such as tobacco and weapons.
Additionally, the IDEO+ Responsible plan aims to eliminate or exclude exposure to fossil fuels in the Plan.
Measuring Sustainable Performance
Kaleido systematically evaluates the performance of its sustainable investments. This includes the proportion of green and sustainable bonds in portfolios, which include, among others, debt securities linked to energy transition projects.
Kaleido also measures the carbon intensity of its investments and compares this data to benchmarks.
Debunking the Myths around Responsible Investment
There is a common myth that responsible investment provides lower returns than traditional investment. Jean-Stéphane Parent, Vice-President and Chief Investment Officer, refutes this idea, citing statistics showing that responsible investment does not necessarily mean lower returns – quite the opposite. Investing in companies that are more respectful of the environment and society and that have high standards of governance allows for better assessment of fraud risks and controversies, making these investments attractive to portfolio managers.
In closing, Kaleido demonstrates that responsible investing is not only aligned with its educational mission, but also financially beneficial. Through rigorous practices and ongoing evaluation, Kaleido is committed to contributing to a better future for children and society.
