As long-term investors, climate change is an important part of the environmental, social, and governance (ESG) focus for BCI and our clients. We share the belief that companies who employ robust ESG practices, including climate-related action, are better positioned to generate long-term value than similar companies with less-favourable practices.
Climate Action Plan
BCI’s Climate Action Plan and Approach to the TCFD Recommendations (Climate Action Plan) helps position our clients to both capitalize on investment opportunities from the long-term transition to a lower carbon economy and protect their portfolios from undue physical and transition risks.
Building on work that began in 2006 when we became a founding member to the Principles for Responsible Investment (PRI), BCI’s Climate Action Plan outlines four core activities:
1. Manage Risks
We focus on quantifying BCI’s and our clients’ specific climate change risks, monitoring changes in expected outcomes, and aligning with best practices.
We believe the most effective way to manage climate investment impacts is to integrate climate considerations into every investment decision at the asset, pool, and total client portfolio levels.
3. Seek Opportunities
We capitalize on the transition to a low carbon economy, increasing our exposure to climate-related investment opportunities where it makes financial sense.
4. Engage & Advocate
We engage with portfolio companies, advocate for climate action policies and regulatory changes, and participate in global initiatives on climate risk reporting and transparency to promote a stable investment environment.
Climate-Related Targets in Public Markets
In February 2021, BCI announced 5-year climate-related targets for its public markets program. The near-term targets represent a significant step to further benefit from the opportunities and address the risks associated with climate change.
As a growing number of governments, companies, and institutional investors establish strategies to help achieve the Paris Agreement objective of limiting global warming, BCI believes that it is in our clients’ best financial interests to set targets that align with this international treaty. These goals are consistent with the guidance of the Task Force on Climate-related Financial Disclosures (TCFD).
Our Approach to Disclosure
BCI believes that greater disclosure leads to improved transparency and helps investors make more informed investment decisions.
We align our reporting practices with the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). In June 2017, we officially signed a statement supporting their work, and in November 2017, we signed the CFO Statement of Support. Our alignment is reported in our Climate Action Plan, and annual updates are included in our ESG/responsible investing annual reports.
Climate Action Plan
BCI’s Climate Action Plan and Approach to the TCFD Recommendations supports our primary mandate to grow the value of our clients’ funds.
ESG Annual Report
BCI’s 2019 ESG Annual Report provides an in-depth look at our approach to environmental, social, and governance (ESG) matters, our activities, and our progress.