A Corporate Priority
As a global investor responsible for managing long-term capital to meet our clients’ investment objectives, climate change is an important part of our environmental, social, and governance (ESG) focus. BCI invests in the best financial interests of our clients and selects sectors, companies, and assets that generate reliable returns. Capitalizing on opportunities for value creation from the transition to a lower carbon economy, while mitigating systemic risks presented by climate change is core to BCI’s responsibility.
Our Climate Action Plan
Our plan positions our clients to capitalize on opportunities arising from the transition to a lower carbon economy, while also protecting their portfolios from undue physical and transition risk. It also outlines our approach to reporting in alignment with the TCFD. BCI will release an update to our Climate Action Plan in late 2022.
Our Climate Action Plan
By quantifying BCI’s and clients’ specific climate change risks and monitoring changes in expected outcomes.
By employing climate analysis in investment decision-making at the asset, pool, and total client portfolio levels.
By investing in beneficiaries of the transition to a low carbon economy, where it makes financial sense.
Engage & Advocate
By encouraging climate-related disclosure and strategy, with investment companies, industry peers, policymakers, and other stakeholders.
As a signatory of the Task Force on Climate-related Financial Disclosures (TCFD), BCI has been measuring and reporting the carbon footprint of our public equities’ portfolio since 2017, demonstrating the total carbon emissions of the portfolio normalized by the market value. BCI has since started measuring the carbon footprint across all asset classes, including fixed income, real estate, and private markets.
Our 2021 ESG Annual Report
An overview of our ESG highlights, updates, and activities, as well as our climate-related reporting aligned to the TCFD recommendations.
2021 Climate Action Highlights
Invested in climate-related opportunities at the end of 2021
total historical participation in sustainable bonds; 70% in green labels
of climate-related shareholder proposals supported in 2021, compared to 52% in 2020
Climate Action in Our Investments
Puget Sound Energy (PSE) is the oldest and largest utility in Washington State, U.S., serving approximately 1.2 million electric and 900,000 natural gas customers. PSE set an aspirational target to be a “beyond net-zero carbon” energy company by 2045 through operational emissions reductions and partnering with customers and others in the industry to reduce regional carbon emissions.
Refresco Group B.V. (Refresco) is the world’s largest independent beverage solutions provider for retailers and branded beverage companies. The management team is focused on sustainability and is taking steps to reduce the company’s carbon intensity. BCI and PAI have worked with Refresco on expanding ESG reporting with new indicators, including calculating the operational carbon footprint globally.
QuadReal Property Group (QuadReal) manages a residential property with two 1974 towers (Arbour Place) and a newly built tower (Hazel) located in Burnaby, British Columbia. Arbour Place is set for an investment demonstrating a scalable, low carbon, deep retrofit approach for high-rise residential buildings. Once the retrofit is completed, energy use is expected to drop by 50 per cent.
Due to its maturity and size, the Government of Ontario is a market driver for Canadian dollar-denominated green bonds. We believe the proceeds are advancing governmental climate policies, which is reinforced by international recognition and the inclusion of Ontario issuances in major green bond indices. BCI has participated in five green bonds issued by Ontario, totalling over $375 million in participation.
Collaboration on Climate Action
The Climate Finance Project
BCI has partnered with the Pacific Institute for Climate Solutions and the University of Victoria on The Climate Finance Project. This multi-year initiative aims to expand the potential of the finance and investment sector to support the transition to a low-carbon economy.
Climate Action 100+
Climate Action 100+ is the largest investor-led engagement initiative on climate change. BCI leads or co-leads engagements with four North American companies in the oil and gas sector and mining industry, and supports engagements with six other companies in the oil and gas sector and utilities industry.
Sustainable Finance Action Council
Jennifer Coulson, senior managing director of ESG in public markets, serves as a member of the federal government’s Sustainable Finance Action Council. BCI advises on the foundational market infrastructure needed for a stable and reliable sustainable finance market.
Canadian Investor Statement on Climate Change
BCI and 35 other institutional investors managing $5.5 trillion called on companies to act on material climate risks. The signatories also commit to disclosing their financed emissions and setting the expectation that investment companies will establish emissions targets and report on progress.