Project Description

Active ESG is seeking students to conduct market research on ESG investing, with a focus on Canadian retail investors and an “active ownership” approach. According to Engine No 1 LLC, “active ownership means: leveraging investor power to influence board elections and other shareholder votes; holding companies accountable for their environmental, social and governance commitments; investing to drive value - not divesting; and driving long-term economic value.” It can be contrasted with divestment or exclusionary screening as an ESG investment approach.

Key Project Activities

Our students would pursue two lines of research to help us understand the opportunity for active ownership in Canada

Market Research

Compile information on existing ESG offerings, publicly traded company ownership, and the Canadian regulatory framework to understand:

• What options exist for Canadian retail investors seeking an ESG approach?What proportion of existing offerings take an “active ownership” approach, as opposed to a “divestment” approach?
• How susceptible are Canadian companies to independent shareholder pressure? What proportion of publicly traded Canadian firms have voting shares mostly controlled by insiders?
  What proportion of publicly traded firms are owned by large asset managers? What is the approach of these asset managers towards governance around ESG issues?
  What tools do Canadian shareholders have to hold companies accountable? What tools can companies use to defend the position of management?
  

User Research

Interviewing investors to understand their approach to ESG and answer:

• What issues are Canadian ESG investors most concerned about? How do they see the impact of their investing activities on those issues?
  

Ideal Roles and Responsibilities

Our ideal candidates are curious and have a good sense for asking the right questions. They should have a demonstrated interest in one or more of the following; climate finance or socially responsible investing more broadly, corporate law and governance. They should have experience interviewing people in a professional setting, and must be effective communicators both verbally and in writing.

FINAL PROJECT DELIVERABLE:

A short research report and set of interview transcripts addressing the questions listed above.

We have two supervisors who are available for students who will be very invested in their learning outcomes.