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New climate for risk disclosures supports better investment decisions




Companies can be exposed to climate risks that range from the physical to the reputational.Nastco

Tougher rules from regulators in Canada and around the world on how companies report on climate risks will have implications on how investment advisers approach their relationships with clients and invest their money.

Late last year, the Canadian Securities Administrators (CSA) proposed a standardized reporting framework on climate risks greenhouse gas (GHG) emissions for Canadian-listed stocks and bonds.

“It will enable a level playing field when it comes to disclosures,” says Jean-François Gagnon, co-leader of sustainable finance at EY Canada in Montreal. “When you look at the different ESG rating agencies, there is a lack of convergence. Part of it is due to the fact that disclosures are hard to come about, so this should normalize things and support better decision-making.”

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The CSA isn’t alone in taking these measures. The International Sustainability Standards Board is planning for global sustainability or non-financial disclosures for corporations or issuers, such as implementing minimum requirements for reporting GHG emissions. The U.S. Securities and Exchange Commission and European Union are also developing new standards around environmental, social and governance (ESG) disclosures.

These proposals share the common goals of increasing transparency on ESG risks and making it easier for advisers to compare companies from a risk perspective.

That’s especially important as investor interest in sustainable funds continues to rise. Morningstar Canada reported that assets invested in these funds doubled to $34.5-billion in 2021 from the year prior. To add an extra layer of protection for investors and increase transparency, the CSA has introduced guidelines on disclosure practices for funds that consider sustainability or ESG in their objectives or strategies.

“Advisors should start to see more disclosure in terms of how an investment manager or portfolio manager is taking some of the material factors into consideration in their investment decisions, and whether they engage in shareholder activism,” says Fate Saghir, head of sustainability at Mackenzie Investments in Toronto.

Standard disclosures are like financial statements

Climate risks can be physical (damage to assets and operations), reputational (if a company is seen as hindering the transition to a low-carbon economy), market-related (shifts in demand for certain products/services), legal and regulatory (costs of compliance or exposure to legal action), technological (displacing old tech and investing in new alternatives), and more.

While climate risks are becoming even more prevalent, they can be hard to assess as a risk category. That’s why disclosing material climate-related risks is vital for advisers and investors in order for them to make more informed investment decisions.

Standardized disclosure rules on ESG-related risks will help in the analysis of companies for asset managers, somewhat akin to comparing financial statements, says Mr. Gagnon. Ultimately, that will make it easier to build ESG-friendly investment funds without sacrificing returns.

“ESG is an additional dimension in which you can enrich your risk/return profile as you build your client’s portfolio,” he says.

While Canada and the U.S. are more aligned on the ESG-reporting front, the divergences begin to widen on a global scale. Europe is generally viewed as stricter and Asia as less so.

In 2018, the European Commission (EC) introduced the Sustainable Finance Action Plan to promote sustainable investments across the bloc, combat greenwashing (misleading claims about a product’s ESG credentials) and change how funds are classified. Although the EC’s plan is approaching the end of its five-year implementation, some more complex changes have been given a longer timeline before they take effect.

“It will be easier for advisers or portfolio managers to understand how a company’s activities or revenue are aligned to sustainability,” Ms. Saghir says.

For international securities that might not have enough ESG disclosures, she says advisers should take the time to engage with the company.

“If you’re investing directly in a company and not going through an investment fund, it’s actually a great opportunity for portfolio managers or advisers to better understand how they’re thinking about sustainability and managing their climate risks,” she says.

There are also other tools advisers can use to help compare climate risks. Ms. Saghir says MSCI Inc. is starting to make more of its company disclosures and rating publicly available. Data from Morningstar Inc. and ESG-focused research firms, such as Morningstar subsidiary Sustainalytics, can also provide an overview of regulatory or geopolitical challenges that fund managers should be looking at, she says.

“If you’re going to go through a third-party ESG-reporting route, it’s important to understand the methodologies because they’re all different,” Ms. Saghir says. “So, spend the time on the methodology if you’re going to invest in the securities directly. Otherwise, get that aggregate disclosure and get a feel for how that portfolio manager thinks about sustainability in their investment process.”

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My Favorite Investment Writing of 2022



With 2022 coming to a close, it’s time for my annual tradition of gathering my favorite investment writing of the year. I started this tradition in 2017, and have continued it ever since (2018, 2019, 2020, 2021).

However, unlike previous years, 2022 was painful for investors of all types. Stocks fell, bonds fell, and crypto really fell in the worst market environment since 2008. And, though this year was difficult for all of us, the silver lining is all the great investment writing that came out of it. With that being said, I present my favorite investment writing of 2022:

The first piece on this list was technically written in February 2021 (and featured on last year’s list). However, given its accuracy and level of foresight, I thought it would be the perfect way to start this year’s list as a reminder of how far we’ve come. If there’s one line that I will never forget it’s:

Eventually, everyone figured out that Galileo was right. Eventually, everyone will figure out that Cathie Wood isn’t. And it won’t take as long either.

Yes Drew. It didn’t take long at all.

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Morgan remains my favorite writer in finance because he is one of the few people that can make me re-evaluate my most cherished beliefs. In this piece he challenges our reliance on data and logic by demonstrating why people don’t always behave as rationally as we think they will. Filled with beautiful stories and counter-intuitive insights, this is another Morgan Housel classic that you won’t want to miss.

While I don’t agree with everything that Ben Hunt writes (he can be too bearish for me at times haha), I recognize that he is one of the best thinkers in our industry. In this post, he provides a brief history of financial markets during the era of declining interest rates and how 2022 flipped everything on its head. If you want to have a better understanding of monetary policy and how people respond to interest rates, this is the piece to read.

Sometimes I read a Josh Brown piece and can’t perfectly describe what it’s about, only that you have to read it. This is one of those pieces. In it, Josh walks you through the last few years in markets and explains why everything seems to have taken a sudden 180. Though there are some things that you weren’t suppose to see, thankfully, this piece isn’t one of them.

I love it when a writer provides a simple rule of thumb that makes my financial life easier. In this piece Katie does just that. Using her rule, you’ll be able to quickly calculate out how much you need to save for retirement based on how much you want to spend (each month) in retirement. Not only is this rule practical, but Katie explains it in a fun and relatable way. For anyone who wants great financial tips from one of my favorite people in the industry, look no further than Money With Katie.

With all the bullshit that there’s been in the investment industry over the past few years, this piece from Benn Eiffert is a breath of fresh air. Though Benn is mostly known for being an expert on volatility, he demonstrates his overall investment knowledge wonderfully in this scathing takedown of an industry that has, unfortunately, conned so many. While there’s a lot of bullshit in the financial world, thankfully, you won’t find any in this piece.

While many writers will discuss risk within your portfolio, far fewer think about it with regards to your income and your career. In this piece, Chris Keith teaches a lesson that took me a little too long to learn—diversification shouldn’t stop with your investments. While owning a mixture of income-producing assets can work wonders, having a mixture of different income sources is equally, if not more, important. If you want to learn how to be a little more anti-fragile with your finances in the future, read this.

Jack Raines is the fastest growing financial blogger that I’ve ever seen and this article helps explain why. In it, Jack explains the six types of wealth and why they are all important to your life. Though only in his mid-twenties, Jack writes with the wisdom of someone decades older. Don’t just take my word for it though, read this piece and find out for yourself.

Another young blogger that has taken the financial world by storm, Kyla Scanlon is the go-to person for understanding what’s happening right now in the markets and the economy. In this piece she defines a term that was since co-opted by many others—the vibecession. While she is mostly known for her TikToks, Kyla’s sometimes quirky and always insightful writing is not something to be overlooked.

Ben wrote a lot of great posts on the housing market this year, but this was my favorite because it addressed the elephant in the room—luck. Given that purchasing a home is likely to be the biggest financial decision of your life, luck plays an important role in such transactions. Ben’s piece is useful in this regard because it highlights how this plays out in the real world. If you are in the market for a house (or will be soon), this is the piece to read.

I love when Michael Batnick does posts like this because there are so few writers that can take the 40,000 foot view and summarize it in such a succinct and insightful way. This piece is no exception. In a year where there are many lessons to be learned, Michael drops 20 of them with ease. My favorite is:

Diversification is the only answer to an unpredictable future. If everything is working, you’re not really diversified.

Amen, Michael. Amen.

Last, but not least, we have The Crypto Story from none other than Matt Levine. Matt is the best daily writer in finance, which means that he tends to write about things that happened in the last 24 to 72 hours. However, with this piece Matt created an evergreen epic that dives into the history of crypto and how its future might unfold. While this piece clocks in at around 40,000 words, Matt’s simple way of explaining such complex topics make it an easier read than you might expect. Don’t miss out.

I hope you enjoyed this year’s annual review. Happy investing and thank you for reading!

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This is post 324. Any code I have related to this post can be found here with the same numbering:

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Ontario Teachers’ Announces Appointment of Sustainable Investing Leader Anna Murray



TORONTO, Dec. 6, 2022 – Ontario Teachers’ Pension Plan Board (Ontario Teachers’) announced that Anna Murray has been appointed to the role of Senior Managing Director and Global Head of Sustainable Investing effective December 5.

Working within Total Fund Management, Investment Division, Ms. Murray will play a leadership role in supporting Ontario Teachers’ long-term plan to create a lasting, positive impact while creating value for members. By working closely with senior leaders and investment teams across the organization, she will execute on the fund’s ambitious climate strategy and net-zero targets, advance its approach to impact investing and oversee corporate governance activities including proxy voting and public company engagements. She will also oversee the continued integration and assessment of Environmental, Social and Governance (ESG) opportunities and risks in the investment process.

“Sustainable investing is a key part of Ontario Teachers’ strategy as it generates positive, real-world impacts while supporting long-term value creation for our members. We look forward to Ms. Murray and her team helping us meet our impact-related commitments, as well as continue to evolve our approach and build on our leadership in sustainable investing,” said Ziad Hindo, Chief Investment Officer.

Ms. Murray has extensive experience leading and developing sustainability strategies. Most recently, she was the Global Head of ESG for Sun Life Capital (SLC) Management where she was responsible for integrating ESG risk management and value creation practices into investment decisions and management across the firm’s global investment platform. She also worked as Global Head of ESG with BentallGreenOak, SLC Management’s real estate investment manager and a globally recognized provider of real estate services.

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Ms. Murray is Co-Chair of the Principles of Responsible Investment (PRI) Real Estate Advisory Committee and of the Environmental Committee at the Pension Real Estate Association (PREA). She also serves on the Board of Directors for the Responsible Investment Association and the Canada Green Building Council. She has been named one of the Top 100 Women in Canada by the Women’s Executive Network, Top 40 under 40 and one of Canada’s Clean50, which recognizes sustainability leaders who have made exceptional contributions to the clean economy. She holds an international MBA from the University of British Columbia and a law degree from York University with a focus on environmental justice and sustainability.

About Ontario Teachers’ 

Ontario Teachers’ Pension Plan Board (Ontario Teachers’) is a global investor with net assets of $242.5 billion as at June 30, 2022. We invest in more than 50 countries in a broad array of assets including public and private equities, fixed income, credit, commodities, natural resources, infrastructure, real estate and venture growth to deliver retirement income for 333,000 working members and pensioners.

With offices in Hong Kong, London, Mumbai, San Francisco, Singapore and Toronto, our more than 400 investment professionals bring deep expertise in industries ranging from agriculture to artificial intelligence. We are a fully funded defined benefit pension plan and have earned an annual total-fund net return of 9.6% since the plan’s founding in 1990. At Ontario Teachers’, we don’t just invest to make a return, we invest to shape a better future for the teachers we serve, the businesses we back, and the world we live in. For more information, visit and follow us on Twitter @OtppInfo.

Media Contact:
Dan Madge
Phone: +1 (416) 419-1437

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Record investment in MB highways in store for 2023



MLA for Turtle Mountain, Doyle Piwniuk, says he’s looking forward the New Year as one full of accomplishments.

“I’m very optimistic, we have a very big year going forward provincially,” he explains.  “We’re looking at economic development, reconstructing of more highways, like Hwy 23 in the region, and we have more highways to fix.  Going forward in 2023 there will be a record investment in our highways.”

“It’s also going to be a good year for the Turtle Mountains area too because of the opportunities at the International Peace Garden and the economic development in the different communities. I believe we are going to have a very bright 2023,” adds Piwniuk.

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“On behalf of my family to your family, I want to wish you a very merry Christmas and a happy New Year,” he shares.  “And, any time you want to get ahold of me please contact or you can call our number at 204-552-0130.”

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