CPPIB Joins Extractive Industries Coalition
The Canada Pension Plan Investment Board (CPPIB) has become a signatory on the Extractive Industries Transparency Initiative. The initiative is a coalition of organizations, agencies and investors that are working to enhance transparency in resource-rich countries. The hope is that more transparency will mitigate risk in the resource extraction industry. CPPIB’s decision to back the initiative follows previous commitments to responsible investing. As part of their mandate, the CPPIB is particularly interested in the extractives industry, climate change, and executive compensation, in large part due to the prevalence of such businesses in the Canadian economy and within its investment portfolio. Since companies in the industry are often confronted with a wide range of environmental, social and governance factors, their management of these issues is directly applicable to their long-term financial performance.