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Guidance to foster effective corporate governance that supports long-term value creation 

British Columbia Investment Management Corporation (BCI) is one of Canada’s largest institutional investors, with C$295 billion in gross assets under management. For 25 years, BCI has actively exercised its ownership rights to safeguard and enhance long-term value for its clients. 

In addition to proxy voting and direct and collaborative engagement with companies, we attend select Annual General Meetings (AGMs) to hear directly from corporate boards and management and to communicate our expectations. In 2025, BCI participated in AGMs across Asia and Canada, submitting questions and supporting collaborative statements. We believe AGMs are a critical forum for investor dialogue and holding board directors accountable for overseeing the company, making the chosen format a significant consideration in facilitating quality engagement. 

This article outlines our expectations and provides practical guidance for hybrid AGMs. We encourage public companies to proactively adopt these practices and to view investor participation in AGMs as an opportunity for constructive dialogue and partnership that supports long-term, sustainable growth. 

Learn more about how BCI leverages AGMs in our 2024-2025 Stewardship Report 

Global trends: The hybrid movement

The COVID-19 pandemic significantly disrupted in-person AGMs globally, prompting a rapid shift toward virtual and hybrid formats.  

In recognition of the need for clear standards during this shift, BCI participated in the 2020 Multi-Stakeholder Working Group on Practices for Virtual Shareholder Meetings, which developed practical guidance to help companies replicate meaningful shareholder engagement in these new formats.² Today, regulators, companies, and investors have gained valuable experience from this transition, leading to a clearer understanding of best practices for AGMs. 

Recent industry surveys indicate that hybrid AGMs account for approximately 40% of shareholder meetings worldwide, reflecting a record level of global adoption.³ Australia, for example, stands out as a leader with about 60% of AGMs held in hybrid format between 2021 and 2023.¹

Starting in January 2027, hybrid AGMs will be mandated for South Korean companies with assets exceeding KRW 2 trillion – part of the broader corporate governance reforms to address the country’s long-standing valuation discount. This legal requirement sets a new regional benchmark for modern AGM practices. 

Considering these developments, companies are encouraged to proactively adopt hybrid AGMs as a best governance practice. The hybrid format improves accessibility, strengthens shareholder communication, and supports long-term value creation through enhanced transparency and engagement. 

Making the case: The business value of hybrid AGMs 

Hybrid AGMs provide investors with greater access to exercise their ownership rights. Broader access and participation can benefit companies by: 

1. Facilitating informed business strategies: Broader investor participation enables company leadership to receive a diverse spectrum of feedback, promoting better identification of risks and opportunities and contributing to robust strategy development.  
2. Enhancing transparency and shareholder engagement: Hybrid formats demonstrate responsiveness to shareholders, which may improve market perception and strengthen investor confidence. This approach can make companies more attractive to both institutional and retail investors. 
3. Supporting long-term value creation: Engaged shareholders are more likely to support value-enhancing decisions and maintain long-term commitment to the company, helping to stabilize the investor base and reduce share price volatility.  
   

Investor expectations: Best practices for hybrid AGMs 

The guiding principle for hybrid meetings is that virtual attendees should have the same opportunities for participation and dialogue as those attending in person.⁴ In-person attendance should remain an option, but it should not be the only means of investor participation.  

 
1. Meeting Access & Voting Treatment 

• Provide clear, detailed instructions⁵ in both proxy circulars and related materials on how to register for the meeting, either in person or virtually, in advance. Offer timely support to shareholders as needed. 

• Disclose the meeting platform early to enable shareholders to familiarize themselves with the technology before the meeting.  

• Clearly explain how shareholders may cast their votes. For example, specify whether virtual attendees can vote electronically in advance and whether they have the option to amend their votes during the meeting. 

2. Q&A Sessions  

• Commit to hosting a Q&A session during the AGM to support accountability and demonstrate board responsiveness. 

3. Virtual Microphones 

• Provide live virtual microphones for remote participants to ask questions verbally, ensuring equal participation and fostering trust. Leading global markets, including the U.K. and Australia,³ have already adopted this practice. 

4. Question Format & Submission 

• If written submissions are required, communicate reasonable character limits clearly and in advance. 

• If a live microphone feature is unavailable, commit to reading full questions aloud and identifying the shareholders submitting the questions. 

• Avoid exclusive reliance on pre-submitted or written-only questions, as doing so can limit participation and may not address real-time discussions or provide adequate context. 

5. Question Transparency & Transcription 

• Ensure all questions submitted during the meeting are visible to participants. This transparency allows shareholders to assess whether concerns are being addressed, fosters understanding of different perspectives within the shareholder base, prevents the impression of cherry-picking questions, and promotes board responsiveness.¹ 

• Transcribe and/or display real-time questions to help shareholders track discussions, avoid repetition, and facilitate smooth meeting management. South Africa provides an example of a system that enables real-time question transparency.¹

6. Presenter Video & Audio  

• Provide real-time video of presenters—including directors and management—alongside presentation slides, rather than audio only, to promote transparency and facilitate meaningful engagement. 

7. Live Translation 

• Provide simultaneous English translation for meetings conducted in other languages to promote inclusivity and ensure understanding across the global shareholder base. 

8. Board & Auditor Attendance¹ 

• Require that all or most board members, as well as the external auditors, attend the AGM. 

• Ensure that the board chair or independent lead director—not the CEO—presides over the meeting to reinforce accountability. 

• Provide shareholders with opportunities to engage directly with external auditors and audit committee members on financial and sustainability disclosure and assurance matters, the latter of which are becoming increasingly significant. 

BCI views hybrid AGMs as the governance standard for the companies in which it invests and encourages the proactive adoption of these best practices. We welcome dialogue with those seeking to enhance shareholder engagement and will continue to advocate for regulatory frameworks that support equal participation rights for all shareholders across global markets. 

Download: Best Practices for Hybrid AGMs (PDF)

Questions or comments about this guidance can be directed to corpgov@bci.ca.
 

Combined company will be one of the largest independent providers of sustainable development data, serving customers representing over US$40 trillion in AUM  

On October 29, 2025, Net Purpose, a data platform for sustainable investors, announced the acquisition of the Sustainable Development Investments Asset Owner Platform (SDI AOP) – the global standard for classification of sustainable development investments founded by British Columbia Investment Management Corporation (BCI) alongside APG, AustralianSuper, and PGGM.  

Net Purpose will bring the SDI AOP methodology, data processing, and customer functions in-house, and launch enhanced Sustainable Development Goal classifications. SDI AOP founders will continue to play an active role in shaping the platform’s strategy and methodology, including representation on the Net Purpose Board.   

“This partnership with Net Purpose marks an exciting evolution for SDI AOP,” said Jennifer Coulson, Senior Managing Director & Global Head, ESG at BCI. “As a founding member, BCI has helped support the development of a global standard related to sustainable development investments. Combining forces with Net Purpose allows us to scale these efforts, and we look forward to continuing as part of the Net Purpose Board to maintain the quality and integrity investors depend on.” 

Customers will benefit from a more comprehensive product platform exclusively focused on sustainable and impact investors across asset classes, and a larger team of sustainable investing experts. 

This consolidation of credible standards aligns with BCI’s ongoing efforts to support access to quality, comparable ESG data across global markets – which is integral for investment decision-making. It reinforces BCI’s commitment to responsible investing and advancing solutions that benefit our clients and strengthen the broader investment environment. 

Learn more about the partnership in the Net Purpose news release. 

Sai Devabhaktuni, Senior Managing Director, joins other Private Equity Leaders for a discussion on Portfolio Construction at the 2025 Mergermarket Private Equity Forum 

The private equity playbook is being rewritten and reshaping how investors operate. Longer holding periods, slower exit activity, and changing GP behaviours are driving institutional allocators to rethink traditional approaches. At the recent Mergermarket Private Equity Forum in Austin, industry leaders gathered to discuss how they are evolving portfolio construction in today’s environment. 

Navigating the slower flywheel 

Sai Devabhaktuni, Senior Managing Director at BCI Private Equity, shared how BCI is navigating these market challenges. “The investment – value creation – monetization flywheel is not spinning as fast as it should be.” Put simply, private equity firms are taking longer to exit investments and return capital while simultaneously approaching investors for new fund commitments.  

In response to these extended timelines, BCI has recalibrated its capital deployment and is taking a more deliberate approach on both the timing and the sizing of commitments.  BCI’s disciplined strategy includes being more selective on investments and active portfolio management that carefully weigh risk exposures across holdings. 

Dynamic portfolio management 

At the same time, Devabhaktuni outlined three areas where BCI Private Equity is adapting: 

• Building strategic GP relationships: Moving toward fewer, deeper partnerships while prioritizing managers with strong value creation capabilities, AI adoption, and robust succession planning. As Devabhaktuni explained, “As we’re deploying capital… that capital will be there for an extended period of time, we need to make sure it’s protected and there’s continuity.” That said, BCI remains open to new partnerships: “If an interesting opportunity comes up and there’s a value proposition, we’ll engage. The bar is higher, but we’ll engage.” 

• Implementing broad diversification: The strategy spreads investments across firm sizes, geographies, and capital stack positions to build portfolio stability. “We want to construct a portfolio that is resilient and diverse in terms of the size of private equity firms we engage with—not just large cap but also middle market.” Geographically, the team favors a regional approach, maintaining diversified exposure across markets rather than taking concentrated country-specific positions. 

• Flexible, active portfolio management:  BCI tactically rebalances its exposure as market conditions evolve.  This may include utilizing the secondary markets, altering the risk/reward paradigm by moving up the capital structure or obtaining exposures through continuation vehicles. As it relates to continuation vehicles, BCI takes a case-by-case approach to each opportunity. “There’s no default option from our perspective; everything is bespoke.”  

Looking ahead 

Managing nearly C$34 billion in assets under management through 80+ investment professionals across Victoria, New York, and London, BCI Private Equity reflects how leading investors are adapting to markets with active portfolio management while maintaining a focus on long-term value creation. Current market dynamics will likely persist with evolving distribution patterns—a reality that prompted Sai to note, “It’ll be interesting to see what happens in the future.” BCI’s agile approach, characterized by flexible deal structuring and disciplined investing, enhances the firm’s ability to respond to these conditions. 

Watch a recording of the full panel discussion below:  

Mergermarket Private Equity Forum – Austin, October 7, 2025 | Panel: “Institutional investor insights: looking ahead” 

By Florence Chong
Published: September 2025

Canadian pension fund BCI aims to substantially increase the share of European assets in its infrastructure portfolio, as it continues to look abroad for expansion.

British Columbia Investment Management (BCI) is likely to increase its infrastructure investment in Europe by 50% over the next five years, in line with its broader strategy to grow its overall infrastructure portfolio by 60% by 2030.

BCI sees Europe as “a transaction-rich environment” with many nameplate infrastructure assets available for acquisition. It aims to increase the share of European assets to between 25% and 30% of its infrastructure portfolio – up from 21% today.

The firm set the stage for this European expansion with the opening of its London office in 2023. The office, which currently has 10 staff members, is expected to grow as BCI continues to build its investment footprint in the region.

BCI manages the investments of a number of public-sector pension and insurance funds in British Columbia. “As their long-term targets for the asset class continue to increase, we anticipate remaining a very active investor in the market,” says Jerry Divoky, senior managing director of infrastructure and renewable resources at BCI.

Divoky notes that, historically, BCI’s infrastructure programme has delivered strong returns with relatively low risk – it has been designed to deliver stable performance through different market cycles and events.

BCI’s C$32.2bn (€19.8bn) infrastructure portfolio has delivered an approximate 5% yield. “Half of our return over the last decade has effectively come from yield, and the other half from capital appreciation,” Divoky explains. “Significant capital comes back to us as yield, which we can then redeploy.”

The portfolio is primarily comprised of regulated utilities – including gas, power and water – which account for 40% of assets. Renewable resources such as timber and agriculture comprise 20%. Transportation and GDP-sensitive assets and renewable energy each account for 10%, digital/telecommunications 5%, and the balance is allocated to other assets.

At 5%, BCI’s exposure to digital infrastructure remains modest compared with some of its peers. Divoky says: “The anchor in our portfolio has always been core infrastructure – regulated utilities or highly contracted assets. Even though this space has become more competitive, we remain interested.”

Even so, BCI sees strong potential in digital infrastructure. “We remain focused on digital infrastructure opportunities, as many investors are. It is a sector with strong thematic tailwinds,” Divoky says. So far, BCI has mainly participated in digital through the debt markets.

Opportunistic approach

BCI has a wide investment scope and acquires assets opportunistically. In June, it bought a minority stake in Pinnacle Towers, the largest telecom tower platform in the Philippines, from KKR. The acquisition bolstered BCI’s existing telecom tower investment in Altius in partnership with Brookfield. “India is experiencing a tremendous expansion in data and telecommunications,” Divoky says.

Altius combines telecom tower and related infrastructure assets previously held by Summit Digitel, Crest Digitel, and American Tower Corporation’s Indian operations. The latter was acquired last September, giving the partners ownership of 257,000 telecom sites, making it the largest tower portfolio in India and the largest platform globally outside of China.

Divoky also highlights that a repricing in the renewable power sector is creating attractive new investment opportunities that are in focus in North America as well as Europe.

In June, BCI and Macquarie Asset Management acquired Renewi, a European industrial waste recycling business, in a deal valued at £707m (€816m).

“Waste is an area we’ve found quite attractive over the years,” Divoky says. “We just hadn’t found the right kind of business until now. Renewi focuses on commercial and industrial waste and holds a commanding position in Belgium and the Netherlands.”

BCI generally pursues a buy-and-hold strategy but will occasionally make strategic exits. One such divestment was its sale of US assets owned by Global Container Terminals (CGT). “We didn’t feel we could manage terminals on both coasts of the US effectively or generate significant synergies,” says Divoky. BCI, which co-owns GCT with IFM Investors and Ontario Teachers’ Pension Plan, is now focused on terminals in Vancouver.

Regarding trade tensions, Divoky remains unfazed: “So far, we’ve experienced strong trade volumes. Negotiations are ongoing and will eventually settle. If there is any shift in trade-related infrastructure, it will happen over decades.”

Already, 90% of BCI’s infrastructure assets are located outside of Canada. Given the limited size of the domestic market, Divoky expects international assets to remain the main driver of growth.

Privatisation potential

There is, however, a potential shift on the horizon. Under the Liberal government led by Mark Carney, Canada is exploring private capital participation in infrastructure to address budgetary challenges.

“But investable opportunities in Canada for large-scale brownfield operating infrastructure are relatively modest,” Divoky says. “We hope that changes going forward. Canada’s Federal Government and Provinces still own airports and most utilities. There’s tremendous potential for the government to privatise these assets, realise capital, and reinvest in greenfield projects that support GDP growth.”

Divoky adds that BCI has deployed capital effectively in the US over the years. “We’re still very interested in the US market, but with the current geopolitical climate, we’re being a bit more cautious,” he says.

“We’d also like to deploy more capital in Australia but, as with Canada, quality opportunities are scarce. Beyond that, India has tremendous promise,” he says. Significantly, it is another market where BCI has on-the-ground representation. So far, the Philippines is the other market where it has invested.

Approximately 10% of the firm’s infrastructure portfolio is in Latin America, but political instability has prompted BCI to exercise “caution” on new investments.

Asked whether global geopolitical tensions have impeded investment, Divoky says that the opposite is the case: “The uncertainty is creating pricing opportunities. Assets aren’t being priced for perfection. We’re mindful of geopolitics, political risks and the potential for populism when deploying capital.”

With a growing global pool of capital targeting infrastructure, Divoky acknowledges that competition is fierce. BCI seeks opportunities in both public and private markets.

“We’ve recognised over the years that competition for private assets has intensified. So we’ve enhanced our ability to find value in listed markets,” he says.

Most recently, BCI led the £1bn take-private of Luxembourg-based BBGI Global Infrastructure. “It’s the first major take-private transaction fully led by the BCI infrastructure team. It’s groundbreaking,” Divoky says.

“We felt BBGI would continue to diversify our global portfolio.” BBGI holds more than 50 infrastructure companies and projects across sectors and geographies.

BCI has previously taken over a public timber company, now part of its Mosaic timber business. Divoky believes BCI will continue to seek opportunities to privatise listed infrastructure companies when the timing and value are right.

Republished with permission. Read the original article on IPE Real Assets.

A name change to reflect the department’s evolution since its inception over 20 years ago 

After more than two decades of growth and evolution, BCI’s Public Markets department is changing its name to Capital Markets & Credit Investments. The change represents the breadth, expertise, and sophistication of the investment strategies the team has built over BCI’s nearly 26-year history. 

What began as a small team in 2000 has grown into a dynamic, multi-faceted group managing more than $165 billion in assets. A key milestone in this evolution is the strategic shift toward internal management capabilities, rising from 57 per cent internally managed assets in 2015 to more than 85 per cent today. This agile approach supports internal innovation, differentiates BCI’s team, generates greater client value, and demonstrates our commitment to building world-class in-house expertise.

The program has successfully navigated multiple market cycles by maintaining defensive positioning with strategic sector allocations and establishing robust liquidity frameworks years in advance. ESG principles have also been integrated directly into investment analysis and decision-making processes, reflecting BCI’s recognition that environmental, social, and governance practices can materially impact investment performance. 

Today, the Capital Markets & Credit Investments department oversees a global portfolio that spans public equities, absolute trading strategies (through the Partnership Portfolio), derivatives trading and indexing, fixed income, foreign exchange, and private debt, while also managing BCI’s Funding Program and overseeing BCI’s ESG strategy. The private debt component alone has grown significantly since its launch in 2018 with the Principal Credit Fund now representing a $20 billion allocation. 

“This change reflects the evolution of our department. Capital Markets & Credit Investments better captures who we are today: a dynamic, forward-looking team that continues to grow and innovate. This new department name honours everything we’ve built and signals where we are headed,” said Daniel Garant, Executive Vice President, Global Head of Capital Markets & Credit Investments.  

As public and private markets strategies converge, the Capital Markets & Credit Investments team’s agility and expertise enable BCI to identify and capitalize on unique investment opportunities across the capital spectrum, delivering stronger outcomes for the clients we serve. 

While the department’s name has evolved, its core mission remains unchanged: delivering strong, risk-adjusted returns for BCI’s clients through diverse investment strategies. 

The evolution of infrastructure investment in the digital and energy transition era 

Lincoln Webb, Executive Vice President and Global Head of Infrastructure & Renewable Resources, recently spoke at McKinsey & Company’s 10th Global Infrastructure Initiative Summit, sharing BCI’s perspective on “Evaluating risk and return in Infrastructure’s new era”. His insights focused on how innovative projects, particularly in energy transition and digital infrastructure, require expanded due diligence frameworks to ensure investments deliver both compelling returns and meaningful societal impact. 

Infrastructure investment success in 2025 requires navigating a complex landscape where traditional defensive assets must coexist with transformational opportunities. Today’s investors must adopt a fundamentally different risk assessment approach – one that integrates predictive modeling, geopolitical analysis, data security scrutiny and ESG factors as core investment criteria, not secondary considerations. BCI’s C$32.2 billion Infrastructure & Renewable Resources (I&RR) portfolio is embracing this evolving risk analysis approach. It allows our I&RR program to concentrate on essential services that demonstrate resilience over long-term investment horizons, while also positioning the portfolio for the economy of tomorrow with more innovative infrastructure investments. 

 
Energy transition: Where returns meet impact 

The energy transition continues to present compelling long-term investment opportunities, with operational assets typically delivering high-single digit net IRRs and development projects offering mid-teen returns over 10 to 20-year investment horizons, while enabling meaningful carbon reduction through renewable energy and supporting infrastructure. McKinsey estimates that clean electricity will account for 65 to 80 per cent of global generation by 2050¹. They also project that achieving net-zero emissions by 2050 would require US$9.2 trillion in annual average spending on physical assets for energy and land-use systems through 2050, representing an additional US$3.5 trillion per year compared to current spending levels. This represents an unprecedented capital deployment opportunity for investors who can effectively assess and manage evolving risk profiles. This growth spans renewable energy systems, smart grids, energy storage, and supporting infrastructure across multiple jurisdictions and technologies. 

Today, renewable power investments comprise approximately 9.0 per cent of BCI’s I&RR portfolio – a figure that has steadily grown over the past ten years through investments in Eku Energy, Isagen, Reden Solar, and Shepherds Flat. 

Key factors that we evaluate for energy transition investments include: 

• Regulatory or policy risks: Complexities arising from interacting with multiple regulatory frameworks, as well as changing government and subsidy policies, 

• Technology performance: Evaluating long-term project technologies in terms of production, reliability and durability, and operational costs and long- term maintenance forecasts, and, 

• Market dynamics:  Evaluating energy price stability or volatility, the strength of existing customer contracts, and future expected energy demand. 

Digital Infrastructure: Essential Services For Today’s Economy 

BCI’s most recent digital infrastructure investments have focused on telecommunication assets bridging digital divides and 4G coverage gaps in growth markets, but all digital infrastructure investments require comprehensive technical due diligence. Today, digital infrastructure assets comprise approximately 9.2 per cent of I&RR’s portfolio, including our recent investments in Frontier Towers, Rakuten Mobile and Altius. 

The digital infrastructure sector is estimated to require US$19 trillion of investment by 2040, yet the sector presents unique risk assessment challenges. These include physical infrastructure capacity, radio equipment specifications, transmission capabilities, and co-location opportunities. Investors must evaluate both current operational status and expansion potential for multiple operators. 

Key factors that we evaluate for digital infrastructure investments include: 

• Supply Chain Risks: Critical component constraints and construction timeline pressures, 

• Regulatory Compliance: Evolving cybersecurity requirements and data privacy regulations, 

• Technology Integration: Managing interdependent risks throughout digital infrastructure ecosystems, and, 

• Power Infrastructure: Ensuring adequate power solutions for opportunities in data centers and communications networks. 

Strategic Portfolio Evolution 

The complexity of these interconnected risks requires comprehensive due diligence and sophisticated risk mitigation strategies. While traditional infrastructure assets continue to form the foundation of our core I&RR strategy, our investment scope evolves to capture the best opportunities across sectors – including those in digital and energy transition spaces that align with both our return objectives and our clients’ long-term interests. This approach reflects our commitment to generating long-term value through our investments, leveraging our extensive global network, and applying our unique industry expertise in an increasingly complex investment landscape. 
 

Lincoln Webb (centre) and other panel participants at McKinsey & Company’s 10th Global Infrastructure Initiative Summit. 

(1) https://www.mckinsey.com/capabilities/sustainability/our-insights/sustainability-blog/cop27-financing-the-transition-to-net-zero

Victoria, B.C. – September 17, 2025 – British Columbia Investment Management Corporation (BCI) today released its 2024-2025 Stewardship Report, demonstrating continued leadership in driving ESG performance and portfolio outcomes through engagement, proxy voting, and policy dialogue.  

“The past year was marked by significant geopolitical upheaval and economic uncertainty, with some suggesting that ESG is inconsistent with delivering financial returns,” says Jennifer Coulson, BCI’s Senior Managing Director and Global Head of ESG. “Our experience managing $295 billion in global assets tells a different story: effective stewardship drives sustainable value for our clients, and is fundamental to our approach.”  

Last year, BCI engaged 176 portfolio companies to address material risks and opportunities, and achieved its objectives or built positive momentum with 34 per cent of those companies. During the most recent proxy season, BCI voted at 2,225 public company meetings in 52 countries.  

Notable engagement successes include completing a multi-year collaborative engagement with Teck Resources on climate risk, protecting minority shareholder interests during the acquisition of Atacadao SA, and contributing to the broader governance reform movement in South Korea that led to the country’s landmark Commercial Act amendments. Additionally, BCI’s position on stronger sustainability disclosures to support investor decisions continues to yield results. More than 35 jurisdictions covering 40 per cent of global market capitalization have now incorporated the International Sustainability Standards Board (ISSB) standards.¹

This year’s report also introduces BCI’s updated ESG engagement priorities – physical and transition climate change risk, responsible AI, and human capital management – which reflect the areas expected to have the greatest impact on investment performance in the coming years.  

“As an active, long-term investor, BCI has a responsibility to help position our portfolio for the risks and opportunities ahead,” adds Coulson. “Every engagement, every vote, and every policy submission is ultimately about protecting and growing the assets entrusted to us by our clients.” 

2024-2025 stewardship highlights   

• Emphasizing governance: BCI voted against or withheld our vote from 32 per cent or nearly 4,000 board directors across our global equities portfolio for reasons including insufficient independence, lack of board diversity, and problematic compensation practices. We pursued 56 engagements on corporate governance, reinforcing our foundational expectations and supporting board and management accountability.  

• Managing climate risk: BCI continued to vote against board directors for lack of climate risk oversight and disclosure, and pursued 139 climate engagements in the energy, utilities, and financial sectors. Notably, we completed a seven-year engagement with Teck Resources that culminated in the company’s removal from the Climate Action 100+ target list based on its progress. 

• Expanding influence in Asia: BCI deepened engagement in prominent Asian markets, including Hong Kong, India, Japan, Malaysia, Singapore, South Korea, and Thailand. We cast votes at nearly 750 annual meetings in the Asia-Pacific region and engaged with companies and policymakers alongside investor coalitions like the Asian Corporate Governance Association to raise market standards. 

• Creating value in private markets: BCI engaged 16 private portfolio companies to strengthen alignment with our ESG expectations and support sustainability initiatives designed to deliver value at exit. We hosted an inaugural Private Equity ESG Value Creation Conference in New York, bringing together nearly 50 investment partners and companies to demonstrate the links between ESG and financial performance.  

As a core aspect of BCI’s ESG strategy, this stewardship reporting complements the ESG and climate-related disclosures available in our 2024-2025 Corporate Annual Report. 

Read the 2024-2025 Stewardship Report on BCI.ca.  

¹IFRS Foundation Annual Report 2024 

With its rapid economic growth and favourable demographics, Asia is presenting increasingly attractive investment opportunities for global investors. BCI has exposure to the region through our active and passive public equities strategies, as well as direct investments in our Private Equity and Infrastructure & Renewable Resources portfolios – most recently in India, Japan, Malaysia, and the Philippines.  

Our investment footprint means Asia is an increasing focus for BCI’s stewardship program. We are observing strong regional momentum for corporate governance reforms that will enhance shareholder value and ultimately accelerate progress on other material environmental and social issues – creating a compelling case for increased engagement. 

Over the past two years, BCI deepened our efforts across Hong Kong, India, Japan, Malaysia, Singapore, South Korea, and Thailand through collaboration with international investors, participation in meetings with regulators and companies, policy consultation submissions, and ESG-related joint statements. This work aligns to our investment objectives, and we take a holistic view of advancing progress.  

An integrated approach

In Asia, BCI’s approach to stewardship combines company engagement with strategic policy input, recognizing these efforts are most effective when pursued together. To maximize our impact and resources, we also work in close collaboration with other global investors and industry organizations like the Asia Corporate Governance Association (ACGA) and Asia Research & Engagement (ARE). 

Many companies are not only receptive to this approach but increasingly proactive in embracing organizational changes such as greater shareholder outreach, strengthened governance practices, and expanded ESG initiatives. Across our engagements, we are intentional about emphasizing the critical role that companies play in driving reforms and elevating these markets to align with global standards.  

Delivering investment value 

BCI’s ESG initiatives directly support the objectives and priorities of our investment teams, helping to deliver long-term, sustainable returns for our clients. We have dedicated ESG experts embedded across our business, working hand-in-hand with portfolio managers to factor ESG risks and opportunities into investment decisions.  

Our focus in Asia is no exception. BCI’s regional activities are helping to shape the attractiveness of the market and address underlying risks that could impact long-term returns.  

For example, BCI’s internally managed Active Emerging Markets Equity Fund has many years of experience in Asia-Pacific, providing valuable insight into the ESG topics and engagement opportunities across the region that could influence portfolio performance. The deep expertise and capital allocation perspective of the investment teams adds credibility to our overall approach with companies and regulators. 

“Companies aren’t only hearing from a standalone ESG team – they hear directly from our portfolio managers who are actively allocating capital. This alignment gives BCI’s voice real weight and helps companies understand that ESG considerations are directly embedded into our investment decisions.” 

– Shannon Gong, Principal, ESG 

“With South Korea representing a significant part of BCI’s active global emerging markets equity portfolio, these improvements have direct relevance to our investment outcomes. Stronger minority shareholder protections and enhanced transparency support our investment objectives and should help address the country’s valuation discount over time.”  

– Jean-Christophe Lermusiaux, Managing Director, Global Emerging Markets. 

Learn more about BCI’s approach in our 2024-2025 Stewardship Report . 

Guided by our belief that stronger ESG practices will ultimately lead to stronger performance, BCI uses our influence and shareholder rights to drive ESG improvements in our portfolio and across the broader capital markets.  

Proxy voting is a crucial part of our stewardship activities. Share ownership comes with the right to vote at company meetings and participate in the decisions of the public companies that we are invested in. BCI takes this opportunity seriously and aims to vote at the meetings of every public company in our portfolio. We publish these votes ahead of each annual general meeting through a database on our website.  

BCI season snapshot   

Proxy season trends 

The 2025 proxy voting season revealed significant shifts in shareholder initiatives, marking a departure from recent trends in both the volume and nature of proposals submitted to public companies. 

Results from North American annual general meetings (AGMs) offer insight into this evolution. We have observed a sharp decline in the number of shareholder proposals filed, with a 26% decrease in volume compared to 2024 – one of the most significant declines in recent years. The reduction likely reflects the guidance provided by the Securities & Exchange Commission (SEC) early in the season, which allowed more companies to exclude proposals that had already been filed, and a potential recalibration of shareholder activism strategies. Other notable observations include:  

• Focus on traditional corporate governance priorities: For the first time since 2021, governance-related initiatives outnumbered environmental and social (E&S) proposals. Governance proposals received strong investor support above 30%, reflecting continued emphasis on board composition, accountability, and shareholder rights.   

• Headwinds for climate-related proposals: Average support for climate proposals dropped from 25% to 10%, signaling shifting investor sentiment and selectivity. However, in Canada, support for proposals asking banks to disclose the extent to which they are  financing fossil fuels compared to cleaner energy sources via an “energy supply ratio” was markedly high with nearly 40% backing, bucking the downward trend. This suggests that investors are paying attention to financial institutions’ exposure to energy sector risks and opportunities. 

• Challenges for diversity, equity and inclusion (DE&I) proposals: Support for DE&I proposals declined from 24% to 14%, with Equal Employment Opportunity-1 disclosure and racial equity audit proposals seeing increased backing, indicating higher investor appetite for transparency. 

• Uncertainty about AI: Despite doubling in volume, support for AI proposals dropped from 17% to 10%, suggesting investor caution around this relatively new proposal topic and measures that could impact competitive positioning. 

• Low support for anti-ESG requests: While we saw an increase in the number of proposals explicitly seeking rollbacks or an end to corporate activities addressing climate, DE&I, and other ESG topics, these proposals received consistently low support. With around 5% support, these proposals are unlikely to gain widespread favour.   
  

We anticipate many of these trends will persist in future voting seasons, and expect to see continued strong support for governance-focused proposals and more nuanced investor expectations for environmental and social risk management.  

BCI voting examples

• Climate Change: BCI supported proposals asking BMO, CIBC, and TD to disclose their renewable versus non-renewable energy funding ratios. TD achieved 38% support – a record for a climate proposal at a Canadian bank – with CIBC and BMO receiving 37% and 32% respectively. 

• Governance: BCI cast ballots for over 12,000 director elections, voting against or withholding our vote for 32% based on poor governance practices with insufficient independence representing over half of the votes. 

• Executive Compensation: BCI voted against UnitedHealth Group’s executive compensation plan due to a problematic $60 million front-loaded stock option award for the CEO. Forty percent of shareholders opposed the plan, demonstrating significant concern. 

• Responsible AI: BCI supported a shareholder proposal asking Amazon to disclose how AI data center expansion affects its climate commitments. The proposal received 20% support, representing strong shareholder backing.  

Looking ahead

Our work doesn’t stop at the ballot. After we vote, BCI directly follows up with select portfolio companies to ensure they understand our rationale and expectations. We also closely review our voting record to see how we made an impact and find areas to refine our approach. This review is an important step in preparing for any repeat shareholder proposals and will inform our biennial Proxy Voting Guideline update planned for 2027.  

Proxy voting represents just one component of our comprehensive stewardship program, which also includes direct and collaborative engagement and policy advocacy work. As responsible stewards of our clients’ assets, this engaged approach is crucial to ensuring the long-term sustainability of our investments.  

Learn more in our 2024-2025 Stewardship Report. 

Sources: BCI, Institutional Shareholder Services, Morningstar, and RBC Capital Markets 

Partnership to Support Continued Strategic Expansion and Accelerate Growth, Building on Company’s Leadership in Commercial Paving Services

New York, NY & Victoria, BC – September 9, 2025 – AEA Investors’ (“AEA”) Middle Market Private Equity team (“AEA MMPE”) and British Columbia Investment Management Corporation (“BCI”) today announced that they have acquired Pave America, LLC (“Pave America” or the “Company”), a leading commercial paving maintenance services provider, from Trivest Partners (“Trivest”) and Shoreline Equity Partners (“Shoreline”). Trivest and Shoreline will retain a minority stake in the business, alongside Company management. Terms of the transaction were not disclosed.

Headquartered in Virginia, Pave America has rapidly solidified its position as the largest provider of commercial paving maintenance services in the U.S. With 27 branches and self-perform capabilities in 43 states, the Company offers a full suite of maintenance and new construction services to local and national customers. Powered by its proprietary PavementSoft technology platform, which supports everything from lead tracking to invoicing, Pave America has earned a reputation for consistent quality and seamless operations across geographies, making the Company a solutions provider of choice and a highly sought-after partner within the paving industry.

“This marks the beginning of an exciting new chapter for Pave America,” said Tom York, CEO of Pave America. “AEA has a strong history of partnering with branch-based services businesses to successfully scale for the long run, and they and BCI bring expertise and resources that will be instrumental as we seek to accelerate our growth both organically and through strategic acquisitions. We are grateful to Shoreline and Trivest for their support in establishing such a strong foundation for our business, and we look forward to building on that progress together with AEA and BCI, continuing to deliver the highest quality commercial paving solutions to new and existing clients nationwide.”

“The Pave America team has built a standout business rooted in a culture of operational excellence and employee ownership, which continues to attract top-tier branch operators across the country,” said Alex Mehfar, Partner on the AEA MMPE team. “In a highly fragmented market with significant runway, Pave America has consistently demonstrated its ability to deliver an unparalleled quality of work while continuing to strengthen and scale its differentiated platform. Leveraging its purpose-built PavementSoft software, the Company has seamlessly integrated across locations and consistently delivers superior employee and customer experience. We’re excited to support the team as they build on this momentum and pursue new opportunities for growth moving ahead.”

“Pave America has created an unrivaled platform in commercial paving, combining national scale, purpose-built technology, and comprehensive self-perform capabilities to deliver superior service quality,” said Aaron Papps, Senior Managing Director, Private Equity, BCI. “Our investment alongside AEA reflects our shared conviction in the Company’s growth trajectory and operational leadership, which distinguish Pave America in the marketplace. We look forward to supporting the Company’s management team as they continue executing and accelerating their proven expansion strategy.” 

“We have been proud to support the creation of the leading national platform in commercial paving services,” said Russ Wilson, Managing Partner at Trivest, and Mike Hand, Managing Partner at Shoreline. “The Company’s rapid growth, strong culture, and successful integration of best-in-class operators have positioned it as the clear market leader. We are excited to continue our partnership as minority investors alongside AEA and BCI as Pave America enters its next phase of expansion.”