Integral to Our Approach
As a long-term investor, incorporating environmental, social, and governance (ESG) considerations into our investment process is an essential part of who we are and what we do. It is also integral to how we meet our responsibility to manage our clients’ funds. Our approach to ESG is embedded in the corporation through our investment beliefs and ESG principles. We abide by our ESG Governance Policy, which applies to all employees and BCI’s Board of Directors.
BCI has established an ESG Strategy and Climate Action Plan which provide our employees, clients, and stakeholders a clear understanding of our activities. We review our ESG approach regularly and continuously adapt our strategies based on our experience and evolving responsible investment standards.
We consider ESG to be synonymous with responsible investing and sustainable investing.
“BCI’s ESG leadership builds on more than two decades of intentional action. We have established deep expertise and support for integration across asset classes, while using our size and influence to drive tangible ESG improvements. We continue to raise our expectations for portfolio companies, investment partners, and other players in the capital markets.”
2022 ESG HIGHLIGHTS
public companies targeted through collaborative engagements
total historical participation in sustainable bonds; $1.45+ billion invested in 2022
ESG reviews completed for investment opportunities across asset classes
an update to our Climate Action Plan, affirming our support for the global goal of reaching net-zero emissions by 2050
the 11th edition of our Proxy Voting Guidelines, raising expectations related to climate change, diversity, and shareholder rights
our ESG team, appointing our first global head of ESG and welcoming specialized team members to support BCI’s private markets programs
Our ESG Strategy
We integrate ESG analysis and risk management in all investment processes, from supporting clients’ asset allocation decisions to individual investment decisions within our portfolios.
Through engagement and advocacy, we apply our influence on companies in which we invest, our partners, and other participants in capital markets.
We actively seek opportunities to invest in ESG-themed investments that contribute to improved long-term outcomes for clients and reinforce our investment beliefs.
We use our learnings across all ESG activities, as well as our understanding of emerging trends, to generate insights that help us continuously adapt and improve our strategies, processes, and approaches.
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.
ESG in Our Investments
In early 2022, BCI launched the Active Emerging Markets Equity Fund offering cost and operational efficiencies for clients, while allowing us to capture long-term growth opportunities through internal, active management. During the development of the fund, we focused on tailoring our ESG analysis to the unique considerations of emerging markets, and built analytical tools to assess ESG data and screen the investment universe.
Mosaic Forest Management is deferring logging on 40,000 hectares of private land in coastal British Columbia for at least the next 25 years. The deferral will increase natural carbon storage allowing Mosaic to sell carbon credits generated from the conservation of old forest habitats. As a board member, BCI participated on a carbon credits committee to oversee the evaluation and execution of the initiative. Photo: Salish Eye Productions
Endeavour Energy, a regulated utility that provides electricity to more than one million residential and commercial customers in Australia, has been advancing reconciliation with the Aboriginal and Torres Strait Islander peoples in line with Reconciliation Australia’s Reconciliation Action Plan (RAP) framework. The company is currently developing its Innovate RAP. As a board member, BCI supports Endeavour’s management in setting an example for reconciliation action and accountability. Photo: Endeavour Energy
QuadReal Property Group updated its strategic pathway to reduce GHG emissions to net zero by 2050. The pathway includes reducing energy consumption, increasing energy efficiency, and transitioning to renewable energy sources for its properties. QuadReal’s net-zero strategy aligns to BCI’s expectations for portfolio companies set out in our Climate Action Plan. Through energy efficiency projects, BCI’s domestic portfolio saw a reduction in annual carbon emissions of more than 30 per cent from 2007 to 2022.
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.
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 and mining industries, and supports engagements with six other companies in the oil and gas industry and utilities sector.
BCI joined the ESG Data Convergence Initiative (EDCI) in 2021, a collaboration that has grown to over 260 general and limited partners. EDCI compiles private company ESG data using a standard set of metrics, streamlining data collection, analysis, and reporting. It is the first major initiative of its kind.
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 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 strengthen ESG practices across the industry.