iA Financial Group | Adjust competency grid to include environmental expertise at iA Financial Group

Status
Filed
AGM date
Previous AGM date
Proposal number
3
Resolution details
Lead filer
Mouvement d'éducation et de défense des actionnaires (MÉDAC)
Resolution ask
Strengthen board oversight of issue
ESG theme
  • Environment
ESG sub-theme
  • Climate change
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Canada
Resolved clause
It is proposed that Industrial Alliance enhance its directors’ competency grid to ensure it specifically considers directors’ experience and expertise in environmental and climate change issues.
Supporting statement
The economic and regulatory environment in which large institutions, particularly financial institutions, operate is undergoing profound change due to environmental and climate issues. These challenges, which affect financial stability, reputation and long term performance, require boards of directors to have the necessary skills to understand, anticipate and respond to them strategically. In this respect, it is becoming essential that the competency grid governing the composition of boards of directors explicitly reflects the need for expertise in the environment and climate change. There are several reasons for this approach: — Managing increased risks: Physical risks (natural disasters, supply chain disruptions) and transition risks (stricter regulations, changing consumer preferences, market adjustments) have a direct impact on financial and operational performance. It is therefore imperative that the board be able to assess them in an informed manner. — Rising stakeholder expectations: Institutional investors, regulators and civil society are demanding greater transparency and concrete action on climate governance. Explicit competence in this area within the board is a clear signal of the institution’s willingness to meet these expectations. — Alignment with international best practices: Many companies, particularly in sectors with high climate exposure, have already incorporated this type of expertise into their director selection criteria, in line with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and leading governance agencies. — Creation of lasting value: A better understanding of environmental issues enables the board to more quickly identify opportunities in terms of innovation, new markets and responsible investing, thereby contributing to the organization’s long-term performance and resilience. Formally incorporating environmental and climate change competencies into the director evaluation grid is not just a matter of compliance or image. It is a concrete measure to equip the board with the tools it needs to guide the company effectively in a context marked by climate urgency and the need for responsible transition. This proposal received the support of nearly 8% of the votes at the last annual meeting.

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