What Does ESG Mean to BCI and Our Clients?
Any environmental, social, or governance (ESG) factor that could positively or negatively affect the risk or return of an investment, sector, or fund. These factors can be company-specific, like board independence, or systemic, like climate change.
We consider ESG to be synonymous with responsible investing and sustainable investing.
ESG Governance Policy
Our ESG Governance Policy, approved by BCI’s Board of Directors, addresses the responsibilities for ESG oversight, evaluation, and integration across multiple levels of the corporation.
ESG Strategy
The ESG Strategy builds on our investment beliefs and ESG principles, and ensures consistency across all asset classes in addressing the issues most material to our clients’ investments.
Climate Action Plan
Our Climate Action Plan positions clients to capitalize on opportunities arising from the transition to a low-carbon economy, while protecting their portfolios from undue physical and transition risk.
Our Corporate Influence Priorities
Each asset class has focus areas that are unique to the sectors and companies in which they invest. There are also systemic ESG issues relevant to the entire portfolio, and these corporate-wide engagement priorities guide our activities. Our focus is on accelerating outcomes through direct and collaborative engagement, policy advocacy, peer collaboration, and proxy voting.
Climate Change
Water Management
Data Security & Privacy
Human Capital Management
Diversity & InclusionOur 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 ESG Highlights
detailed ESG reviews across private and public markets completed
total historical participation in sustainable bonds; 70% in green labels
total historical participation through the First Nations Finance Authority
the RIA Leadership Award for Integration and the CIR Pension Leadership Award for Sustainable Investing
with the University of Victoria and Pacific Institute for Climate Solutions to co-develop new climate finance tools over three years
ESG reviews of BCI’s private equity general partners using our corporate-wide external manager framework
ESG in Our Investments
Thames Water Utilities Ltd. (Thames Water) is the U.K.’s largest wholesale water and wastewater services provider. In 2021, the company pledged to reach net-zero carbon emissions by 2030 — 20 years ahead of the U.K. government’s target — and aims to go further than that by 2040, through evaluation and support for opportunities that reduce emissions beyond its operations.
BCI took a minority interest in Pete and Gerry’s Organics (Pete and Gerry’s) in 2021. Pete and Gerry’s is a leading producer of organic and Certified Humane® free-range and pasture-raised eggs from small scale, family-owned and operated farms. Through due diligence, BCI’s consumer sector team validated their thesis that ESG leadership in the consumer sector creates a sustainable competitive advantage.
During a 12-month period spanning 2020 and 2021, QuadReal Property Group (QuadReal) conducted 21 accessibility audits across Canada using the Rick Hansen Foundation’s universal design framework. Auditors provided clear guidance on both short-term and long-term opportunities to enhance accessibility at QuadReal managed properties. QuadReal’s local teams have been engaged in the process and embraced the auditors’ findings.
Climate Action 100+ is the largest investor-led engagement initiative on climate change. It engages with 166 companies representing more than 80 per cent of global industrial GHG emissions. BCI leads or co-leads engagements with four North American companies in the oil and gas and mining industries, and supports engagements with six other target companies.
Collaboration
We collaborate with like-minded investors and organizations to strengthen our collective influence in addressing ESG issues, to explore best practices across industries, and to advance engagement.
BCI is a founding signatory of the Principles for Responsible Investment (PRI). We have contributed to more than 70 investor collaborations since 2006, and joined numerous PRI advisory committees and working groups. Working with other signatories helps to stregnthen ESG practices across the industry.
We joined the Climate Action 100+ in 2017. It 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.
BCI has been a member of the 30% Club Canada since 2016. We support the goal to increase female representation on boards and in executive management at S&P TSX Composite Index companies. In 2022, the initiative renewed its call to action for companies to exceed the 30% target and enhance the presence of other underrepresented groups.
BCI has been a member of ILPA since 2002. The organization engages, empowers and connects limited partners to maximize their performance on an individual, institutional and collective basis. We recently joined ILPA and more than 100 general partners and limited partners in committing to the ESG Data Convergence Initiative.
