Sustainability governance

We believe that sound sustainability governance is essential to the well-being of our business and our ability to generate long-term sustainable returns. As such, we are committed to the highest standards of governance.

Sustainability approach

Sustainability – what we refer to as responsible management – is fundamental to the way we do business. At the core of the Corporation’s philosophy, responsible management has enabled the Corporation to build a resilient and sustainable business through its roles as long-term active shareholder, employer, and contributor to the communities in which it operates. 

The Corporation’s sustainability approach is rooted in this philosophy, as well as in its mission statement, Corporate Sustainability Statement and Code of Conduct, and is supported by several key corporate policies and statements including its Respectful Workplace Policy, its Environmental Policy and its Responsible Procurement Policy Statement. We also extend our responsible management philosophy to third parties that work for/on our behalf, through our Third Party Code of Conduct.

In addition, Power Corporation has strengthened its commitment to responsible management by becoming a signatory to the United Nations Global Compact (UNGC) in 2014, formally adhering to the UNGC’s Ten Principles on human rights, labour, environment, and anti-corruption.

Board oversight

Responsibility for sustainability matters and considerations at the Board level is assigned to the Governance and Sustainability Committee, whose responsibilities include monitoring the implementation of the Corporation’s policy and strategy with respect to corporate social responsibility, which includes sustainability matters. In addition, the Human Resources Committee of the Board is responsible for overseeing the implementation of the Corporation’s Diversity, Equity and Inclusion Policy and sustainability factors in compensation.

Sustainability risks and opportunities are reviewed by the Governance and Sustainability Committee through the updates and progress reports provided annually by the Corporation’s Sustainability Lead and his team, or more frequently as deemed appropriate. 

The Sustainability Lead also provides an annual report to the Audit Committee on the implementation of the Code of Business Conduct and Ethics and of the Anti-Bribery Policy. Being responsible for administering our Cybersecurity Policy and our Artificial Intelligence Use Policy, the Vice-President and Controller also reports to the Audit Committee of the Board of Directors as needed. 

Management responsibility

We believe that sustainability considerations and the appropriate tone-from-the-top are an integral part of the CEO’s and other executives’ roles. This is why setting the tone for company culture, including espousing the Corporation’s ethics, overall values and approach to sustainability factors, and playing a leadership role in the Corporation’s approach to risk awareness and management and sustainability of business models, are among our CEO’s and other executives’ responsibilities. As such, sustainability objectives based on the Corporation’s sustainability strategy form part of the executives’ overall annual objectives and are considered in determining annual incentives.

While our CEO plays an active role in reviewing and approving the sustainability strategy, performance and reporting, formal responsibility for sustainability has been delegated to the Vice-President and General Counsel, who is our Sustainability Lead and reports directly to the CEO.

The Sustainability Lead and his team are responsible for executing our sustainability strategy, engaging with stakeholders and providing performance reports to the Governance and Sustainability Committee. With the oversight of the Sustainability Lead, we also meet regularly with our group companies to share knowledge, understand how they manage sustainability matters, and align on some sustainability initiatives. A portion of the Sustainability Lead’s performance incentives is tied towards progress in integrating sustainability into relevant facets of our business.

Unless otherwise specified in a particular policy or procedure, the Vice-President and General Counsel is responsible for implementing, monitoring and reviewing the Corporation’s sustainability-related policies and procedures.

Active ownership

As a long-term active shareholder in our group companies, we strive to ensure that our governance practices preserve and enhance shareholder value and generate long-term sustainable growth in a manner consistent with our responsible management philosophy. We invest in companies that share the same philosophy and commitment to acting responsibly and ethically, and to serving the wider community in general. 

As part of our long-term active ownership approach, we regularly engage with the senior management of our group companies regarding their respective strategies and initiatives, including on matters related to sustainability. We do so both formally and informally, as well as through our representation on their respective boards when questions or issues may arise. In all these interactions, we have an open and constructive dialogue to gain a proper understanding of how the management teams of our group companies manage sustainability, and if they do so in a manner consistent with our responsible management philosophy.

While we regularly engage with the Power group companies, the Corporation is not responsible for the day-to-day business and operations of its group companies, and non-wholly owned group companies (including, in particular, its publicly traded operating companies) have their own respective management teams responsible for the business and affairs of such companies under the oversight of their respective boards of directors. As a result, building on their strong foundation of sustainability and responsible management, our major publicly traded operating companies and alternative asset investment platforms are responsible for developing and implementing their own strategies, policies and programs, specific to their unique circumstances, including regarding sustainability.

Sustainability risk management

We view responsible management, and all that it entails, as an effective means to mitigate risk, and as a catalyst for long-term value creation, including with regards to sustainability.

As a management and holding company, Power bears the risks associated with being a significant shareholder of its publicly traded operating companies and its alternative asset investment platforms, and recognizes that sustainability trends could impact these companies. The respective boards of directors and risk committees of the board of these operating companies and investment platforms, as applicable, are responsible for the risk oversight function at their respective companies. Certain officers of Power are members of these boards and committees of these boards, and, in their role as directors, participate in the risk oversight function at these operating companies and investment platforms.  

We invite you to read more about our risk management approach by consulting the Risk Management section of our most recent Annual Report, as well as the Risk Oversight section of our corporate website and of our most recent Management Proxy Circular.