COMMITMENTS
Several Power group companies have formalized their commitments through responsible investment or sustainability policies outlining their approaches to integrating ESG criteria in investment analysis and decision-making processes, and to enabling active ownership through engagement and proxy voting. These include IGM Financial’s subsidiaries IG Wealth Management and Mackenzie Investments, as well as GBL, Sagard and Power Sustainable.
In addition, many of our group companies are signatories to the Principles for Responsible Investment (PRI), including Keyridge Asset Management Limited, IG Wealth Management, Mackenzie Investments, GBL, Sagard and Power Sustainable. They are integrating ESG factors into their investment processes as a way to identify both risks and opportunities to enhance long-term returns for investors.
Finally, IG Wealth Management and Mackenzie Investments are members of the Responsible Investment Association (RIA).
ESG INTEGRATION
In recent years, IGM Financial and its operating companies have strengthened their responsible business practices. For example, IG Wealth Management partners exclusively with external sub-advisors who are also signatories to the PRI and share its commitment to sustainable investing through ESG integration, active ownership and industry memberships and commitments. IG Wealth Management and Mackenzie Investments are members of Climate Action 100+, an investor-led initiative to ensure the world’s largest corporate GHG emitters take necessary action on climate change.
Mackenzie also has dedicated staff through the Sustainable Investing Centre of Excellence (COE), a dedicated team of experienced professionals who work to increase sustainable investing capabilities across Mackenzie. In 2025, Mackenzie’s Sustainability COE celebrated five years of providing firmwide support on sustainability-related investment considerations. Efforts have ranged from offering centralized research, thought leadership and expertise, to aligning its stewardship efforts and bringing transparency to clients regarding the firm’s activities. In addition, Mackenzie continued to advance integration of ESG considerations across its investment process by: expanding the use of MSCI physical climate risk tools; developing ESG, Climate and Proxy Voting dashboards to support ongoing monitoring and management of material ESG-risks; and creating ESG tear sheets to inform valuation analysis, security selection and ongoing investment decision-making.
Moreover, across Mackenzie, teams have continued to integrate ESG considerations into their investment processes. What’s changed is that this has become business as usual rather than a specialized or box-ticking exercise. The teams have matured significantly in how they approach sustainable investing, focusing on integrating financially material ESG risks into fundamental decision-making as opposed to a separate overlay.
Mackenzie has expanded its suite of funds investing to directly support the transition to a low carbon economy. The sustainable investment funds allow investors to choose between funds and ETFs with different objectives: Sustainable Core investments allow for investments in industries, companies or issuers with progressive ESG practices, relative to their peers, and are expected to enhance long-term returns; Sustainable Thematic investments that target certain ESG macro-trends or themes that are expected to generate competitive returns; and Sustainable Impact investments where the focus is on outcomes of ESG challenges or opportunities rather than on financial return.
Great-West Lifeco subsidiary, Keyridge Asset Management Limited (Keyridge), also integrates ESG considerations into its investment processes. The company takes a thematic approach to responsible investing, driven by two overarching macro trends: the move towards decarbonisation, capturing the transition to a lower-carbon economy globally, and the move to a more stakeholder-centric business model, which reflects the increasing demands on companies to consider the interests of their wider group of stakeholders, such as employees, communities, supply chains and shareholders, including through companies’ management of sustainability risks. To integrate these themes into its investment processes, Keyridge has developed an investment framework that incorporates sustainability into its investment process across its flagship ‘New World’ corporate fixed-income and equity investment solutions.
As for GBL, it believes that the integration of ESG factors at different steps of the investment analysis and management of its participation supports better risk-adjusted returns for its portfolio. As part of its engaged ownership approach with the companies in which it invests, GBL ensures through direct engagement with the companies’ governance bodies that they are managed in a manner consistent with its responsible management philosophy, including its Code of Conduct and ESG Policy. Considering the nature of its core business and its long-term investment horizon, GBL’s ESG integration process encompasses the following key steps in the investment process: investment universe definition, pre-investment phase due diligence, post-investment ESG integration and ongoing portfolio monitoring, voting and stewardship, and exit decision. GBL’s ESG integration process is reviewed on an ongoing basis. In 2024, GBL’s ESG integration process was adapted to integrate CSRD/ESRS requirements. In 2025, the process was further strengthened through the revision and focus of the annual IRO review on a limited number of material IROs, supporting consistent engagement with its portfolio companies.
ENGAGEMENT ACTIVITIES AND PROXY VOTING
IGM Financial's operating companies have formalized their commitments through sustainable investment policies, which outline the approach taken to integrate ESG considerations into investment analysis and decision-making processes and to enable active ownership through engagement and proxy voting.
IGM Financial’s subsidiary, Mackenzie Investments, is committed to being long-term stewards of capital and encourages the companies they invest in to adopt responsible practices. Advancement of their climate action plan and sustainable investing is propelled through active engagement, ownership and advocacy efforts. In 2025, Mackenzie engaged with 290 companies globally on 1,726 topics and implemented a proxy voting focused list of 140 companies. The company decided to expand the number of companies it engaged with, broadening its global coverage while maintaining a disciplined focus on material sustainability topics. They also advanced their sector-based stewardship model by integrating sustainability specialists with investment teams across energy, financials, consumer, industrials and technology. This approach ensures that their engagements are guided by in-depth sector knowledge and that insights are reflected in portfolio research and analysis.
In 2025, Mackenzie published its inaugural Stewardship Policy, which outlines its philosophy, governance structure and expectations for active ownership. The policy is aligned with the Japan Stewardship Code, one of the most established global benchmarks for responsible ownership. Its principles reinforce clear governance, meaningful engagement and transparent reporting, all of which are central to our approach and consistent with emerging expectations in Canada and other key markets. This alignment provides a coherent foundation for overseeing stewardship activities across the firm and supports more consistent practices across investment teams.
Mackenzie also released its second Proxy Season Review report in 2025, noting that they further advanced their stewardship practices by introducing vote rationale disclosures and sharpening the focus on proposals with potential implications for long-term value creation. These enhancements reflect growing expectations across global markets for transparency, alignment, and rigour in proxy decision-making. Notably, Mackenzie also mentions that a key feature of its 2025 transparency evolution was the publication of vote rationales for all proxy votes cast against management on its updated proxy site, which investors can access to see explanations for why Mackenzie chose to deviate from management recommendations, helping to clarify how these decisions relate to material risks, thematic engagements, or broader stewardship priorities.
Keyridge Asset Management Limited (Keyridge) has developed a set of voting guidelines which are designed to reflect key corporate governance and sustainability issues aligned with Keyridge’s responsible investment framework. This framework is composed of two sustainability megatrends (decarbonisation and stakeholder-centric business models) and four priority themes (climate-related risk, natural capital, human rights and corporate governance), while taking into consideration local market practices and regulations. The company’s approach is informed by the Sustainable Development Goals (SDGs) and the four thematic priority areas are mapped to specific SDGs. Supporting the achievement of the SDGs of these priority themes is generally considered as part of Keyridge’s overarching approach to voting. When making voting decisions, Keyridge considers the interrelation of risks and opportunities within one thematic priority to the management of other thematic priorities. In 2025, the company voted on 6,597 meetings and 65,573 resolutions, with the company supporting 63% of environmental, 82% social and 71% of governance-related resolutions.
Regarding engagement, Keyridge engages directly with companies on a range of issues, including transition risks, physical risks, biodiversity, water, waste management, human rights, supply chain, labour rights, anti-discrimination, human capital management, board diversity, anti-corruption, ESG risk, executive remuneration, and board independence. In 2025, the company conducted 432 engagements with 361 entities, either directly or collaboratively. Of the engagements conducted in 2025, it participated in 325 engagement meetings, either virtually or in-person, and sent more than 200 written communications.
Keyridge’s Stewardship Team has open discussions with peers and works closely with policymakers, different industry participants and non-governmental organizations to improve the management of sustainability-related risks. In 2025, Keyridge continued to play an active role in the collaborative engagements that it participated in. It continued to participate as a lead investor in the CDP Non-Disclosure Campaign, leading 94 engagements in 2025. These engagements encouraged companies to disclose relevant data on climate, water security and forests. Of the companies engaged, 14 submitted their environmental disclosures.
Keyridge also continued to participate in thematic and incident-driven engagement programs led by Morningstar Sustainalytics, joining meetings with investee companies on a range of ESG topics, asking questions and sharing investor perspectives. The company also assessed Morningstar Sustainalytics’ engagement outreach with companies that had been unresponsive, helping to ensure that material issues were communicated effectively and that opportunities for collaboration and dialogue were pursued. Finally, they continued their participation in the fixed income initiative on deforestation as part of the Investor Policy Dialogue on Deforestation, focused on government bonds. This involved engagement with the government of Brazil and participation in virtual and in-person meetings with a range of stakeholders throughout the year, including contributing to two engagement outreach groups.
