June 3, 2021
VICTORIA, BC – Today, British Columbia Investment Management Corporation (BCI) published our 2020 ESG Annual Report, an in-depth look at how we capture investment opportunities and manage long-term financial risks associated with environmental, social, and governance (ESG) matters on behalf of our clients.
This year’s report demonstrates progress made in implementing the four components of our corporate-wide ESG Strategy: Integrate; Influence; Invest; and Insight; and on achieving the goals of our Climate Action Plan. It provides updates on our reporting in line with the Task Force on Climate-related Financial Disclosures (TCFD). The report further showcases examples of our ESG-related activities across the corporation and our work with our investment companies and the broader capital markets.
Over the past six years, BCI has transformed into an active, in-house asset manager and increased the capabilities of our internal team. Our longstanding commitment to ESG has also evolved into a coordinated and consistent approach that integrates ESG across the corporation.
“BCI exists to deliver the long-term returns our clients require to fulfill their mandates,” said Gordon J. Fyfe, CEO/CIO of BCI.
“Factoring environmental, social, and governance (ESG) into our investment decisions across all asset classes is an integral part of helping meet those goals.”
Highlights from the 2020 ESG Annual Report include:
- Expanding our carbon footprint reporting to include all asset classes
- Growing our measured exposure to climate-related investment opportunities to $3 billion
- Introducing updated proxy voting guidelines raising our expectations on addressing climate change risk and disclosure
- Leading or co-leading on engagement with four North American companies in the oil and gas and mining industries as part of the Climate Action 100+ initiative
- Completing more than 225 detailed ESG reviews across private and public markets
- Developing an in-house framework to assess the potential impact of long-term systemic ESG opportunities and risks, such as climate change, on the total portfolio and potential investments
- Participating in seven collaborative engagements in public markets, covering 633 companies on ESG-related matters
- Joining Canadian and global peers to advocate for ESG disclosure, diversity and inclusion, and sustainable capital markets
- Increasing our cumulative historical participation in sustainable bonds to $888 million, up from $356 million in 2019. BCI’s strategies in fixed income will lead to an estimated cumulative participation of $5 billion in sustainable bonds by 2025
- Jointly establishing the SDI Asset Owner Platform alongside APG, AustralianSuper and PGGM to provide a globally consistent standard for investing in the UN Sustainable Development Goals.
- QuadReal Property Group releasing its Green Bond Framework and closing its $350 million inaugural green bond senior note offering
- Leveraging and sharing information from our global private equity portfolio to support pandemic response across the portfolio
- Developing human capital guidance to provide investment companies near-term clarity and long-term expectations related to the pandemic
Looking to the future, BCI will continue to develop investment strategies that create sustainable value in a changing world. This includes proactively using ESG to create value while managing risk.
Ben O’Hara-Byrne, Senior Manager, External Stakeholder Engagement.