June 25, 2024

BCI recognizes the value of diverse boards for better decision-making and long-term performance.

We have long advocated for at least 30 per cent female representation and encourage companies to set diversity targets for both boards and executive management. Since 2016, BCI has been a member of the 30% Club Canada, which aims to achieve a minimum level of 30 per cent of women on boards in Canada.

We use a range of tactics to pursue our board and management diversity objectives. These include proxy voting, direct engagement, policy advocacy, collaborative engagement, and strategic escalation when we see no sign of progress over time.

As chair of the 30% Club Canada Investor Group, BCI and fellow investors determined that U.S. broadband company Charter Communications Inc. lagged its peers with only one woman on the board, well below our expectations of at least 30 per cent representation.

Case Study: Charter Communications
BCI has consistently voted against the chair of Charter Communications’ nominating committee due to inadequate gender diversity at the board level. In 2023, BCI collaborated with U.K. and European members of the 30% Club to engage Charter Communications on the board’s 8 per cent female representation.

After sending an initial letter, the group escalated our action. We filed a shareholder proposal late in 2023 for consideration at the company’s 2024 annual general meeting, seeking commitments to improve diversity through a board gender diversity policy and transparent director recruitment processes. BCI was the lead filer; our co-filers were Brunel Pension Partnership, Nest Corp, and UBS Asset Management.

As lead filer, BCI met with the company to discuss our proposal. In early 2024, Charter Communications nominated a new female director with relevant experience to replace an outgoing male director and reaffirmed its dedication to considering gender and other forms of diversity in ongoing recruitment efforts. In light of the progress, and on the condition that a description of the engagement would be added to the company’s proxy circular, we agreed to withdraw the proposal prior to the annual meeting.

“BCI’s preference is always constructive dialogue and, in this case, the combination of progress and openness to engage warranted the withdrawal. This proves that engagement can get results. We do not see the matter as closed, and look forward to further discussions with the company.”
Jennifer Coulson, Senior Managing Director and Global Head, ESG at BCI

Additional Action on Diversity
Other facets of our engagement approach include contributing to policy and regulatory discussions and voting our shares according to our proxy voting guidelines.

  • Policy: We have submitted proposals to Canadian regulatory bodies for years, advocating for ambitious yet attainable targets for female representation on boards. In September 2023, we endorsed the CSA’s initiative to augment diversity disclosure for Canadian companies and provided our views on the disclosure options presented.
  • Voting: We expect boards to adopt and disclose a formal diversity policy that includes targets and timelines to increase diversity at both the board and senior management level. Our proxy voting guidelines are reviewed and updated regularly. In 2022, we broadened our approach beyond gender diversity to encompass racial and ethnic diversity of directors, starting with the U.S. and expanding to Canada the next year. In 2023, BCI voted against 46 directors at 34 companies for lack of ethic and racial diversity.

Learn more about our approach to engagement.