CIBC’s governance framework reinforces the high standards of ethical and professional conduct we expect from our employees. We apply the same level of commitment and scrutiny to our financial transactions in order to ensure we are managing, investing and lending funds in a socially responsible manner.
Screening our financial transactions
Responsible lending and investing
Equator Principles
Renewable energy and Clean Tech financing
Asset management
Socially responsible mutual funds
Screening our financial transactions
Our Global Reputation and Legal Risks policy sets standards that help identify potential reputation risks associated with certain financial transactions, and also includes a process for escalating issues that require further scrutiny to senior management, and if appropriate, to CIBC’s Reputation and Legal Risks Committee.
Following a recent review, we have amended our policies to prohibit establishing credit facilities for companies that manufacture or trade in equipment or material for cluster munitions, as referenced by The Convention on Cluster Munitions (Oslo Convention).
Responsible lending and investing
Identifying and managing environmental risk is an important consideration in our lending decision process. The CIBC Environmental Credit Risk Management program is central to this effort.
| Within Canada and the U.S. | Outside Canada and the U.S. | |
| Category A | 0 | 0 |
| Category B | 7 | 5 |
| Category C | 4 | 1 |
Category A – Projects with potential significant adverse social or environmental impacts that are diverse, irreversible or unprecedented.
Category B – Projects with potential limited adverse social or environmental impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures.
Category C – Projects with minimal or no social or environmental impacts.
Renewable energy and Clean Tech financing
Many Canadian companies are emerging as leaders in the Renewable Energy and Clean Tech sectors and need increased access to capital.
Since 2009, CIBC has arranged over $2 billion in public and private equity financing and advised on the purchase or sale of over $20 billion in assets for companies in the renewable energy and clean technology sectors.
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In 2012, CIBC lent $600 million towards $3 billion of financing for renewable power projects including wind, hydro and solar power. CIBC has retained its position as a top 10 lead arranger for financing renewable power projects in North America. To focus our efforts in the Clean Tech segment, CIBC is emphasizing four specific areas:
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| For what matters | CIBC’s Don Roberts, Vice-Chairman, Renewable Energy and Clean Technology, is recognized as one of Canada’s 2013 Clean50 honourees Learn more » |
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Asset management
CIBC Asset Management (CAM) invests and votes proxies in accordance with client investment policies. CAM has a very rigorous Canadian equity research process. The process has incorporated an evaluation of the quality and governance practices of corporate boards and general social and environmental policies to consider the impact they may have on stock performance even for non-Socially Responsible Investment/Environment, Social and Governance (SRI/ESG) mandates. CAM’s Proxy Voting Guidelines are based on the premise that SRI/ESG issues can affect investment performance and that appropriate consideration of these issues is part of delivering superior risk-adjusted returns and is therefore part of CAM’s fiduciary responsibilities. This may impact proxy voting and investment decisions in non-SRI/ESG mandates. In SRI/ESG mandates, the above noted SRI/ESG guidelines will be a primary consideration for all investment decisions and proxy voting for those portfolios.
CAM has a team of internal Canadian Equity career analysts who make stock recommendations based on thorough fundamental research. In addition, CAM uses the research provided by Sustainalytics (previously Jantzi), an independent 3rd party source, which reviews, scores and ranks over 2,500 global companies on SRI/ESG issues (including a company’s community involvement, employee relations, environmental performance, corporate governance, human rights, customer relationships and controversial business practices). The service is used by both CAM’s equity and fixed income investment professionals.
CAM manages a number of equity and fixed income portfolios with specific mandates that adhere to SRI/ESG guidelines. These SRI/ESG portfolios shall not hold securities of any company whose primary business is the sale of tobacco or alcohol products or is a supplier of weaponry, or if it has major operations in countries that disregard human rights. The list of securities considered acceptable is reviewed by the CAM Responsible Investment Committee twice a year. CAM also solicits feedback from clients and considers their sensitivity to various SRI/ESG issues in the investment evaluation process.
Socially responsible mutual funds
CIBC Wood Gundy holds $38.3 million in retail mutual fund assets, representing both Social Investment Organization (SIO) Member and Non-SIO Member promoted funds. Likewise, Imperial Investor Service holds $14.6 million in retail mutual fund assets, representing both Social Investment Organization (SIO) Member and Non-SIO Member promoted funds. Both CIBC Wood Gundy and Imperial Investor Services are part of the CIBC group of companies.
