We consider material, long-term sustainability factors, as appropriate, to meet our risk-adjusted return requirements of the general account portfolio. We also invest a portion of Sun Life's general account assets in investments that support a range of our sustainability objectives.
Sustainable investing can help us deliver on our Purpose of helping Clients achieve lifetime financial security and live healthier lives, while strengthening the resilience of our portfolio.
There are various approaches to sustainable investing. As outlined in the Definitions for Responsible Investment Approaches published by the CFA Institute, Global Sustainable Investment Alliance and Principles for Responsible Investment, sustainable investing approaches can include integration of material sustainability factors into investment processes, stewardship, thematic investing, screening, and impact investing1.
We apply sustainable investing approaches for Sun Life’s general account, where appropriate, as an asset owner.
Our approach to sustainable investing integrates material sustainability factors into investment decision-making with the objective of protecting or enhancing risk-adjusted returns. The way we integrate sustainability factors into our investment policies and guidelines varies across our asset classes and portfolios. It is important to note that the general account includes a range of different asset classes and sustainability integration is not always practical or feasible based on available data and information.
In Canada, we’re a financier of private sustainable infrastructure, providing long-term private capital to support construction, operation and maintenance. We work with governments, other businesses, and local communities, among others, to help bring such projects to fruition and help ensure they achieve strong value.
In 2024, Sun Life issued its third sustainability bond, raising $750M to finance assets that meet the eligibility criteria set out under Sun Life's updated 2024 Sustainability Bond Framework. Sun Life's first sustainable bond was issued in 2019, and the second in 2023.To date, Sun Life has raised approximately $2 billion through its sustainability bond offerings. An amount equal to the net proceeds from each offering was used to finance or refinance, in whole or in part, new and/or existing eligible assets (as defined in Sun Life's 2019 Sustainability Bond Framework and 2024 Sustainability Bond Framework, as applicable).
Sun Life is participating in industry efforts to advance opportunities to invest in a sustainable manner. Long-term investors often face a lack of high quality and reliable sustainability-related data (such as GHG emissions). Improved access to data helps long-term investors like Sun Life better account for the risks and opportunities from climate change and direct capital to businesses that are showing they are implementing plans to be resilient in the long term. Through our public policy and regulatory activities, we advocate for internationally-aligned, consistent and economy-wide disclosure of climate-related data from both public and private companies.
In addition, we encourage Canada’s governments to design or introduce policies and strategies that facilitate opportunities to invest in sustainable infrastructure.
Achieved in Q3 2024 - contributed an additional $4.5 billion in new investments, and $22.1 billion invested since 2021 (of which $9.2 billion which was invested through the general account).
Learn more about our progress and performance in our 2024 Sustainability Report and Sustainability Performance Tables.
Sun Life is addressing a critical need in our communities by financing two emergency shelters in the U.S.
Sun Life Assurance Company of Canada received a four-star rating in the latest Principles for Responsible Investment assessment5 for the Policy, Governance and Strategy module. Sun Life also received three-star ratings for the Indirect-Fixed Income-Active and Confidence Building Measures modules.
Sun Life was awarded Regional Sector Leader Status in the Development Component (Americas: Diversified, Non-Listed) in the 2024 GRESB assessment6, ranking 1st out of 6 entities in its peer group. We also achieved 4 (out of 5) Stars in the Standing Investments and Development modules.
1 CFA Institute, Global Sustainable Investment Alliance and Principles for Responsible Investment. "Definitions for Responsible Investment Approaches". 2023.
2 General account and certain third-party Clients, where relevant. More information on AUM methodology, including asset managers and criteria included in the calculation, is available upon request. Client asset values included represent a non-IFRS financial measure. Investments counted toward Sun Life's sustainable investment goal meet one or more of the criteria for investments based on ICMA Green Bond Principles, ICMA Social Bond Principles, ICMA Sustainability Bond Guidelines, GRESB Real Estate Benchmark, and PRI Impact Investing Market Map. Where issuers do not obtain a third-party opinion or provide an internal opinion on their issuance, our investment professionals apply judgment to assess whether the use of proceeds meets the standards set out in the ICMA principles. Assets included may not align with criteria in Sun Life's Sustainability Bond Frameworks. Does not include all holdings in companies that may be defined as sustainable under other taxonomies.
3 Values as at transaction date.
4 An amount equivalent to the net proceeds from the offering will be used to finance or refinance, in whole or in part, new and/or existing green or social assets that meet the eligibility criteria set out under Sun Life's 2024 Sustainability Bond Framework.
5 For copies of Sun Life Assurance Company of Canada’s 2024 PRI Transparency and Assessment reports, contact sustainability@sunlife.com. For more information on the assessment, visit the PRI website.
6 GRESB is a mission-driven and industry-led organization providing standardized and validated Environmental, Social and Governance (ESG) data to financial markets. Established in 2009, GRESB has become the leading ESG benchmark for real estate and infrastructure investments across the world, used by over 140 institutional and financial investors to inform decision-making. GRESB B.V. (GRESB) created and tabulated the Funds score, which covers activities taking place during calendar years 2022 and 2023 and is typically released on or around October 1 after a submission is made to GRESB. A participation assessment fee is paid for such submission. BGO is a member of the GRESB Real Estate Assessment and each strategy participates in a peer group based on the asset characteristics of the portfolios reported.
Refer to Sustainability Data Scope.
