Our Commitments
In the spirit of transparency and accountability, McConnell is pleased to share an updated overview of the steps we are taking to deliver on our commitments.
Justice, Access, Inclusion, Diversity and Equity (JAIDE)
Over the course of the year, McConnell’s JAIDE committee organized a trio of day-long training sessions for staff which focused on recognizing definitions and unconscious biases, identifying and addressing microaggressions, and embracing strategies to foster allyship.
A key part of our JAIDE work this year was to build equity into our policy and procedures framework. We also continued to advance our knowledge of reconciliation and engaged in staff training provided by the Canadian Council for Aboriginal Business through our commitment to the PAR Certification program (see below).
Investments
United Nations Principles for Responsible Investment (PRI) since 2017
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As the world’s leading proponent of responsible investment, PRI supports its international network of investor signatories to incorporate environmental, social and governance (ESG) factors into their investment and ownership decisions. We are evaluated annually by the PRI association, using a five-star rating on ESG performance across three categories:
Policy governance and strategy
We received a three-star rating for policy governance and strategy, which is in line with the median score for PRI signatories.
Rating: ★★★☆☆
Manager selection and monitoring
Manager selection and monitoring is evaluated by asset class. We have aggregated the information for simplicity. Our three-star rating is in line with the median score in this category.
Rating: ★★★☆☆
Confidence building measures
Rating: ★★☆☆☆
Confidence building measures is an umbrella term for different practices, spanning from basic internal control mechanisms to internal audit and third-party external assurance. Our rating is below the median score for PRI signatories. As part of our commitment to building a 100% impact investment portfolio (see below), we will conduct a portfolio impact audit with external reviewers in 2025.
To view the detailed report, please visit: www.unpri.org
100% impact investment portfolio since 2023
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In 2023 we committed to allocate 100% of our portfolio to impact investments over the next five years, with an interim target of reaching a 50% impact portfolio by the end of 2025. Working within our existing investment policy, our aim is to build a balanced portfolio that meets the dual objectives of generating returns to fund our activities while also achieving measurable, solutions-oriented impact.
By the end of 2023, our impact portfolio represented $141.5 million or 21% of our total endowment. While our first-year progress was slower than anticipated, it lay the groundwork for what is to come as we continue to improve our investment tools and develop our process for evaluating entire asset classes from an impact standpoint.
Canadian Investor Statement on Climate Change (CISCC) since 2021
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The CISCC recognizes the catalyzing impact that investment assets can have on climate change and identifies actions investors can take to accelerate the transition to a net-zero economy. This includes requirements for our investees as well as standards and processes for investment practices. As signatories of the CISCC, we have also committed to divest from fossil fuels and to reach net-zero carbon emissions in our investment portfolio by 2050.
Divestment
In 2022 our Board approved the portfolio removal of all investment assets that derive at least 10% of their revenues from the production, distribution and retailing of oil, gas and coal (scope 1 and 2 emissions). At time of commitment, 3.8% of our endowment was invested in these types of fossil fuel companies; our aim was to reach 0% by the end of 2023.
Since the implementation of the negative screen, 99% of our portfolio is now free from oil, gas and coal assets. Our aim is to be fully divested by 2024, using an approach that balances the cost and practicalities of divestment with the overall impact on emissions.
Net-zero carbon emissions portfolio by 2050 or before
We have committed to achieving net-zero carbon emissions in our investment portfolio by 2050 at the latest, with an interim objective of a 60% reduction in carbon emissions by 2030. In 2023 we published a Climate Action Plan which outlines our strategy to reach net-zero carbon emissions in a way that prioritizes real world emissions reductions and a just transition. This means that no one is left behind, and that those people who are most affected by climate change are participating in and leading the work to tackle the climate crisis. We will report on our 2023 emissions reductions in our forthcoming 2023 Impact Investing report.
Communities
Collectif des fondations québécoises contre les inégalités since 2014
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Le Collectif des fondations québécoises contre les inégalités is a group of Quebec foundations that believe that while governments have a duty to reduce inequalities, philanthropy has a complementary responsibility to curb rising inequality, contribute to a just and fair recovery and build more resilient systems.
In 2021, McConnell signed the Collectif’s pledge for philanthropic foundations to fight inequality; we also reported against the commitments. For further details, please visit: collectifdesfondations.org/déclaration-dengagement.
In 2023, McConnell continued to engage with the Collectif on policy priorities and knowledge sharing. Activities of the Collectif included: an event co-hosted with Environment Funders Canada: “Intégrer l’optique de la justice climatique”; and a submission to the Government of Quebec as part of the action plan against poverty and social exclusion.
Reconciliation
The Circle on Philanthropy since 2008
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The Circle contributes to positive change between philanthropic and Indigenous communities by creating spaces of learning, innovation, relationship-building, co-creation and activation.
In 2015, we signed The Circle-led Philanthropic Community's Declaration of Action. In doing so, we pledged to ensure action on reconciliation following the Truth and Reconciliation Commission’s report and subsequent 94 Calls to Action. We are committed to learn about the history and legacy of the colonial system that imposed the Indian Residential School System; listen with compassion, respect and empathy to partners who give voice to this tragedy; and recognize the need for an ongoing commitment to support this multi-generational work. Additionally, McConnell commits to:
- Share our networks, platform and resources to include and benefit Indigenous Peoples.
- Build relationships with Indigenous Peoples and extend the reach of our efforts in both policy and practice.
- Explore new opportunities to support healing and reconciliation, as well as the implementation of the spirit, intent and content of the Truth and Reconciliation Commission’s findings and recommendations.
For further details, please visit: https://www.the-circle.ca/the-declaration.html
The Circle’s Partners in Reciprocity (PIR) 2023
In 2023, four members of our team participated in The Circle’s Partners in Reciprocity program, a year-long peer learning program that supports philanthropic teams in a reorientation toward equity and justice.
Progressive Aboriginal Relations (PAR) since 2022
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PAR is a certification offered by the Canadian Council for Aboriginal Business. We are committed to earning bronze-level PAR certification by the end of 2025. In 2023, we completed phase one of this process; holding trainings for leadership and staff, identifying communities of interest, drafting policy and publishing an Indigenous relations commitment statement. In 2024, we plan on completing phase two, which includes a focus on strategy, communications and community relationships.
Climate
The Canadian and International Philanthropy Commitments on Climate Change (IPCC) since 2021
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The International Philanthropy Commitment is a global movement of philanthropic foundations committed to taking urgent action on climate change. Action is across six categories: education and learning, commitment of resources, integration, endowment and assets, operations, influencing and advocacy, and transparency. In 2021, we also signed the Canadian version of this statement, the Canadian Philanthropy Commitment on Climate.
Signatories must submit an annual implementation report.
Our progress towards each pillar of the IPCC:
- Education and learning:
We prioritized education opportunities for our Board and staff and shared learnings with other funders. - Commitment of resources:
We allocated over $9M to our Climate focus area and supported 71 charitable and non-qualified donees to address systemic barriers to climate mitigation in Canada. - Integration:
We contributed to new grants at the intersection of climate action and equity, diversity and inclusion. Further, we regularly ask organizations we support how they build equity as an outcome of their climate mitigation solutions. - Endowments and assets:
We have divested 99% of our portfolio from oil, gas and coal assets. Our aim is to be fully divested by the end of 2024. We have also committed to reach net-zero carbon emissions in our investment portfolio by 2050 at the latest. - Operations:
We audited the environmental impact and carbon footprint of the Foundation. We are committed to making changes to our operations to further reduce our carbon footprint. - Influence and advocacy:
We actively support organizations that develop policy recommendations and oversee government relations. We also fund Indigenous–led organizations who work to advance their Treaty rights. - Transparency:
We publish all granting decisions on our website and share potential granting opportunities with other Canadian climate funders.
