Indigenous communities: Economic perspectives and investment considerations

With more involvement and inclusion in the economy, businesses need to develop the knowledge, processes, and practices necessary to consider and incorporate Indigenous communities and their perspectives into their operating models.

Through our engagement with corporate issuers and Indigenous groups, here are 4 ways we have observed businesses successfully fostering inclusion with Indigenous communities.

• Ensuring consent and partnership is considered for projects occurring on Indigenous lands. This results in collaboration with Nations rather than confrontation and helps lower the risk of project delays, additional costs or litigation, benefitting both the company and communities.
• Developing strong talent pipelines and training programs within the Indigenous community, especially if a company operates in areas with high Indigenous populations. This ensures community residents have employment opportunities, resulting in economic benefits for all stakeholders.
• Fostering Indigenous representation at senior levels within organizations to help increase opportunities for advancement and disclosure. Current representation is very low with less than 1% of disclosed Board positions held by Indigenous peoples (PDF, 815 KB) Opens in a new window.. Bringing Indigenous perspective into the boardroom has had positive impacts for companies and their operations.
• Supporting the implementation of Canada’s UNDRIP Action Plan Opens in a new window.. The United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) was formally endorsed by Canada in 2016. Businesses can support the declaration by developing their own Reconciliation Action Plan (RAP), using UNDRIP as a guiding principle.

We’ve seen several successful partnerships result in benefits for all stakeholders. One example includes a coalition of First Nations raising capital to acquire ownership in key energy assets in Alberta. This partnership creates value for all parties involved. It drives economic growth for Indigenous communities, develops critical infrastructure for Canadian oil sand operators and provides a blueprint for future partnerships.

At CIBC Asset Management, we acknowledge our role in contributing to reconciliation in both our own corporate actions and in our influence over the companies with which we invest. We are committed to facilitating a sustainable economy that functions for all Canadians. We support the rights of Indigenous peoples including the right to self-determination and the need for all corporate citizens to contribute to reconciliation in a meaningful and respectful way.