British Columbia Investment Management Corporation (BCI) is pleased to announce that Tom Vincent joined the BCI Board of Directors on February 14, 2025. The Minister of Finance for British Columbia has appointed Tom for a three-year term.
“On behalf of the Board of Directors, I would like to extend a warm welcome to Tom,” said Peter Milburn, Chair of BCI’s Board of Directors. “Tom’s significant experience serving on several client boards, along with his public sector expertise, will foster effective governance and oversight that supports BCI’s work of delivering long-term sustainable value to our clients.”
“I am pleased to join the board and support BCI’s purpose of creating value for our clients,” said Tom. “I look forward to working closely with my colleagues. Through collaboration and partnership, BCI has an important role in helping clients build a financially secure future for people across the province.”
Tom succeeds Sheila Taylor, who completed her term as director on December 31, 2024. Sheila was first appointed to the Board in 2018 and served as chair of the Human Resources Committee and Governance Committee.
“We thank Sheila for her many contributions to BCI, including her work as chair of our Human Resources and Governance Committee. Sheila’s insights and leadership were crucial to the Board’s success. We wish her the very best in her future endeavors,” added Peter.
Tom has served in several key roles, including member and Chair of the Public Service Pension Plan Board; Chair of the Interplan Investment Committee for the Public Service, Teachers’, and College pension plans; member of the Teachers’ Pension Board; and member of the Municipal Pension Board. He has also been the Government Partner representative to these plans and chaired the Public Service Pension Plan Benefits Committee. His prior roles include Chair of the British Columbia Medical Services Commission; Vice President of the Public Sector Employers’ Council Secretariat; Assistant Deputy Minister at the Ministry of Advanced Education; Executive Financial Officer for the Ministries of Education, Advanced Education, and Labour; and Executive Director in BC’s Treasury Board Staff.
BCI’s Board is structured in accordance with the Public Sector Pension Plans Act. BCI’s four largest pension plan clients each appoint a member from their Board of Trustees, with the Minister of Finance appointing the Chair and two directors to comprise a seven-member Board.
More information about BCI’s Board of Directors can be found here.
VICTORIA, British Columbia – Today, British Columbia Investment Management Corporation (BCI) released the 12th edition of our Proxy Voting Guidelines. Published every two years, the guidelines affirm BCI’s commitment to using our influence and voting rights to uphold our expectations for robust corporate governance, protection of shareholder rights, and effective oversight of environmental, social, and governance ESG risks and opportunities.
“Our commitment to stewardship is evident across our organization through our deeply embedded practices,” said Daniel Garant, Executive Vice President & Global Head, Public Markets. “Proxy voting is a vital tool for driving corporate accountability and ESG performance in public markets. BCI’s latest guidelines build on two decades of industry leadership, raising the bar for companies across our global portfolio.”
Good Governance
BCI considers the adoption of strong corporate governance practices to be a minimum expectation for all our portfolio companies, and it remains the primary driver of our guidelines. Through proxy voting, we advocate for board independence, board diversity, transparency, and responsiveness to shareholders. We expect boards of directors to foster continuous learning, maintain clear separation between board and management roles, and design reasonable compensation plans aligned with long-term performance. Beyond this, we expect companies to disclose and ensure effective oversight of material ESG risks.
Accountability
Accountability serves as the cornerstone of BCI’s proxy voting approach and is inextricably linked to our governance principles. We have introduced new guidelines to further support holding boards of directors and management to the highest standards. This includes voting against proposals seeking officer exculpation, which limits or eliminates the personal liability of executives who have breached their duty of care, as well as proposals for virtual-only shareholder meetings as this format can limit meaningful investor participation. We have also added voting escalation to oppose the audit committee chair or other members in cases where non-audit fees are 50 per cent or greater than audit fees, or if tenure is 20 years or more and non-audit fees exceed 25 per cent.
Climate Action
Climate change represents an ongoing systemic risk in our investment portfolio. Our latest guidelines emphasize the alignment between our climate-related voting and our commitment to ensuring that, by 2030, at least 80 per cent of our most carbon-intensive investments have set mature net-zero commitments or are actively engaged by BCI.
“Proxy voting and engagement go hand-in-hand, reinforcing one another and giving us multiple levers within our broader stewardship program,” says Jennifer Coulson, Senior Managing Director & Global Head, ESG. “Climate change is a complex, multifaceted challenge and creating close alignment between our voting activity, direct and collaborative outreach, and work with policymakers is not only efficient – it clearly signals our priorities and conviction.”
BCI’s climate-related guidelines affirm our expectations for effective risk oversight by board directors and enhanced disclosure, highlight our use of third-party assessments in evaluating transition plans, and introduce consideration of physical climate risks.
Executive Compensation
BCI believes it is crucial to align financial incentives with long-term performance and sustainability. This year’s guidelines establish our broad support for including performance related to ESG objectives in executive compensation plans, where the associated risks are material. This will be considered alongside other factors for “Say on Pay” ballots.
Proxy voting is a key component of BCI’s overall approach to stewardship – the use of investor rights and influence to protect and enhance long-term value for our clients and beneficiaries. For more information, see our Proxy Voting Guidelines as well as a searchable database of our proxy voting records at BCI.ca/proxy-voting.
CONTACT
Olga Petrycki, Director, Corporate & Brand Communications media@bci.ca
Artificial Intelligence (AI) is revolutionizing the way we work across sectors and industries around the globe. From increasing operational efficiency to improving decision-making, these unprecedented advancements can translate into business results and more meaningful work – but only if you’re comfortable with being uncomfortable.
Tony Payne, BCI’s Senior Vice President, Technology & Innovation and Chief Technology Officer shares how BCI is harnessing the power of AI to create efficiencies and why being nimble and resilient to change is essential for global investors.
Q1: You have led technology teams for more than two decades. What’s your current philosophy around innovation? TP: Innovation is not just a thing that happens; it’s a process that supports human aspirations. I believe there is always room for improvement, efficiency gains, and challenging the status quo. If you stop paddling, you will float downstream. To see what is around the corner and explore new horizons, you need to press forward, seek opportunities, and generate excitement on the journey.
That’s the approach we take at BCI. It’s not always easy, but we are laser focused on delivering for our clients and that means building a culture where we can constantly evolve. The willingness of our people to embrace innovation as a process and seek different ways of doing things makes it easier to bring new ideas to life.
Q2: When you look at the AI landscape, what’s top of mind? TP: Digital transformation and disruption are in the DNA of technologists. What’s most exciting for me right now is the pace at which AI is evolving and creating new opportunities. Not so long ago, the smartphone revolutionized personal computing by combining multiple devices and functions into one – going beyond just traditional phone, music, and camera capabilities to become our go-to for things like banking and health data. The proliferation of AI alongside robotics will generate a whole new world of possibilities, enabling people to truly do things differently.
As AI continues to be embraced by mainstream users, the focus is shifting to how we can add value and tackle challenging thought-work, while leaving mundane tasks to AI-enabled tools. This is pushing people to step out of their comfort zone and re-imagine their roles in a modern world.
Q3: BCI was an early adopter of AI. How is that changing the way you deliver for our clients? TP: When embraced, technology is a critical enabler that can help BCI operate more efficiently and open new operational and investment approaches. We see AI as a key capability, tool, and facilitator, and actively look for ways to integrate it into our work. From automating basic administrative tasks to assisting our investment teams with advanced data analysis using natural language processing, AI is at the forefront of the tools we leverage. It’s freeing up more time to do the work that generates the returns our clients depend on.
BCI was one of 10 companies in Canada chosen by Microsoft to participate in its Early Access Program for Copilot and Azure, two groundbreaking generative AI-integrated tools. Of BCI’s 300 initial Copilot users, 84 per cent reported a 10 to 20 per cent increase in productivity while 76 per cent of users said they would not be willing to go back to working without it. Importantly, our participation gave us the opportunity to provide feedback and influence the development of these tools.
Q4: As a leading global investor, what drives you to stay ahead of emerging technologies? TP: With a portfolio of more than $250 billion in assets under management, our ability to leverage technology to create value is central to our competitive advantage. Across our portfolio, we analyze massive amounts of data to support new and existing investments. Carefully factoring AI into our investment process allows us to derive better insights from available data and create process efficiencies, leading to faster and better decisions. At our current size, even incremental improvements can translate into business wins that ultimately benefit our clients and the communities they serve.
Strong partnerships between BCI’s technology and investment teams are at the core of our approach, and together we focus on the highest impact opportunities and create fit-for-purpose solutions. For example, ESG is deeply integrated into our investment processes across asset classes, and we actively use AI to improve the coverage and quality of sustainability data for our portfolio managers. We are also collaborating to look at how AI can support the development of net-zero roadmaps for our private equity and infrastructure portfolio companies.
Q5: What advice do you share with employees and partners about navigating the ambiguity of AI? TP: Both new technology and technological disruption change everything, but there is no silver bullet to fix complex things. AI is currently going through a hype-cycle and, in the process, there will be wins and losses. We have to stay resilient, embrace change, and look for opportunities – big and small.
That means taking calculated risks and not being afraid to learn from failure. BCI has guiding principles that act as guardrails and allow us to accelerate AI use in a measured way that aligns with our risk tolerance. In this new landscape, navigation really comes down to each of us feeling empowered by new technologies and getting comfortable with being uncomfortable.
Ten of Canada’s largest pension investors and investment managers, representing more than $2.25 trillion in assets under management, today affirm their support for both the Canadian Sustainability Disclosure Standards (CSDS) from the Canadian Sustainability Standards Board (CSSB): General Requirements for Disclosure of Sustainability-related Financial Information (CSDS 1) and Climate-related Disclosures (CSDS 2), collectively the CSSB Standards.
The CSSB standards establish a robust framework for the Canadian market, while addressing specific Canadian circumstances. Alignment with a global baseline is important for the competitiveness of Canadian companies in global capital markets and for Canadian directors to discharge their duties to the companies they oversee. We also believe that this will reduce the reporting burden for Canadian entities that operate or raise capital in multiple jurisdictions.
For major institutional investors, complete, comparable sustainability-related information is a key part of making informed investment decisions. The CSSB’s standards address both general sustainability-related disclosures and climate-specific requirements, thus providing a framework to access this critical information.
While we recognize the need to make modifications to address Canadian-specific considerations, we encourage Canadian issuers to not delay the measurement and reporting of material sustainability-related information, particularly where “reasonable and supportable information is available to the entity at the reporting date without undue cost or effort.” For effective capital allocation decisions, investors depend on standardized disclosure across the full spectrum of material sustainability risks and opportunities.
As part of our mandates, our objectives are to deliver long-term, risk-adjusted returns that help support retirement and benefit security for millions of Canadians. We believe these standards will strengthen the Canadian market’s sustainability disclosure infrastructure and improve the quality of information available to investors, stakeholders and regulators. We call on corporate leaders to adopt CSDS 1 and CSDS 2 to ensure the transparency and comparability needed to make investment decisions that will contribute to a more prosperous future for our clients and beneficiaries.
ABOUT:
British Columbia Investment Management Corporation (BCI)
Gross AUM $250.4 billion (as at March 31, 2024) About
Media: Olga Petrycki, Tel: +1 778 410 7310, Email: media@bci.ca CDPQ (Caisse de dépôt et placement du Québec)
AUM $452.0 billion (as at June 30, 2024) About
Media: Media Relations team, Tel. : + 1 514 847 5493, Email: medias@cdpq.com Canada Pension Plan Investment Board (CPPIB)
AUM $675.1 billion (as at September 30, 2024) About
Media: Frank Switzer, Tel: +1 (416) 523 8039, Email: fswitzer@cppib.com Healthcare of Ontario Pension Plan (HOOPP)
AUM $112.6 billion (as at December 31, 2023) About
Media: Scott White, Email: swhite2@hoopp.com Investment Management Corporation of Ontario (IMCO)
AUM $77.4 billion (as at December 31, 2023) About
Media: Neil Murphy, Tel: +1 (416) 898 3917, Email: neil.murphy@imcoinvest.com Ontario Municipal Employees Retirement System (OMERS)
AUM $133.6 billion (as at June 30, 2024) About
Media: Don Peat, Tel: +1 (416) 815 4433, Email: media@omers.com Ontario Teachers’ Pension Plan (OTPP)
AUM $255.8 billion (as at June 30, 2024) About
Media: Dan Madge, Tel: +1 (416) 419 1437, Email: media@otpp.com OPSEU Pension Plan Trust Fund (OPTrust)
AUM $25.0 billion (as at December 31, 2023) About
Media: Jason White, Tel. : +1 (416) 201 1527, Email: jwhite@optrust.com Public Sector Pension Investment Board (PSP Investments)
AUM $264.9 billion (as at March 31, 2024) About
Media: Maria Constantinescu, Tel: +1 (514) 218 3795, Email: media@investpsp.ca University Pension Plan (UPP)
AUM $11.7 billion (as at December 31, 2023) About
Media: Zandra Alexander, Tel: +1 (647) 454 2612, Email: media@universitypensionplan.ca
Paul was first appointed to the Board by the Public Service Pension Plan Board of Trustees on April 1, 2019. He is a member of the Human Resources and Governance Committee.
Paul is president of the BC General Employee’s Union (BCGEU), a plan partner representative for the Public Service Pension Plan and the College Pension Plan, a trustee on the Public Service Pension Plan Board of Trustees, chairperson of the BC Target Benefit Pension Plan, and.
He also serves on the National Executive Board of the National Union of Public and General Employees and the Executive Council of the BC Federation of Labour.
Paul completed the Directors Education Program at the University of Toronto’s Rotman School of Management in 2019 and holds the ICD.D designation from the Institute of Corporate Directors.
BCI’s Board is structured in accordance with the Public Sector Pension Plans Act. Of the seven-member Board, the four largest pension plan clients each appoint a member from their board of trustees, and the Minister of Finance appoints the other three — two of which must be representatives of clients.
BCI was recently featured in Microsoft’s customer story series highlighting our adoption of generative AI tools, Microsoft 365 Copilot and Azure. Our successful global implementation of these tools has resulted in 22 solutions that have streamlined operational processes, reduced manual and repetitive tasks, and saved over 2,300 human hours.
Embracing technology like generative AI is key to delivering on our priority of accelerating innovation as one of Canada’s largest institutional investors. BCI was one of only 10 companies in Canada chosen to participate in Microsoft’s Early Access Program for Copilot and one of two organizations across the Americas to be highlighted for our successful adoption.
Hear from BCI’s technology team about our AI-powered productivity gains and how technology is empowering us to focus on what matters most: generating returns for our clients.
Stands firm on ESG and climate engagement to achieve real-world outcomes
Victoria, B.C. – October 8, 2024 – British Columbia Investment Management Corporation (BCI) today published its 2023-2024 Stewardship Report, demonstrating continued leadership in driving positive environmental, social, and governance (ESG) performance and generating long-term sustainable value through global policy advocacy, proxy voting, and engagement.
“BCI’s inaugural stewardship report builds on more than two decades of responsible investing,” says Gordon J. Fyfe, BCI’s Chief Executive Officer and Chief Investment Officer. “Active ownership is critical to delivering the returns our clients depend on, both through the management of risks associated with responsible investing and by capturing sustainability-related opportunities.”
This inaugural report furthers BCI’s annual ESG and climate-related disclosures, which are moving towards alignment with the globally recognized IFRS Sustainability Disclosure Standards, and provides an in-depth look at how BCI leverages its influence as one of Canada’s largest asset managers to drive continuous improvement with our portfolio companies.
“The challenges we face require action from all parties. As a global investor, we play a role in creating a resilient and productive investment environment for generations,” says Jennifer Coulson, BCI’s Senior Managing Director & Global Head of ESG. “While there is significant work ahead, the progress we are seeing from companies and policymakers alike reinforces our belief that multifaceted engagement can drive real-world outcomes.”
Highlights:
Engaging beyond equities: BCI directly engaged 134 public and private portfolio companies, achieving our objectives or observing positive momentum in 58 per cent of cases, and supported collaborative engagements targeting over 2,000 additional public companies. Within fixed income, a less targeted asset class, BCI’s engagement with sustainable and conventional bond issuers supported the structuring of instruments more aligned with ESG best practices.
Pursuing value creation: BCI engaged with 31 portfolio companies and partners in our private equity and infrastructure & renewables resources programs, leveraging governance rights like board representation to support alignment on ESG and implement sustainability initiatives that will lead to stronger performance over time, generating value that can be realized at exit.
Voting on climate disclosure: BCI voted at 2,445 public company meetings in 52 countries during the most recent proxy season. We voted against over 100 directors for insufficient climate disclosure and supported 67 per cent of climate-related shareholder proposals, including those calling for additional emissions data from companies in high-emitting sectors and the incorporation of climate risk assessments into audited financial statements at oil and gas companies.
Driving systemic change: BCI contributed to 26 ESG-related policy consultations, roundtables, and joint statements globally to advance priorities like ESG disclosure and methane regulation. We actively participated in the development of the International Sustainability Standards Board’s global disclosure baseline, released last year, and continue to advocate for its widespread adoption, especially in Canada.
ABOUT BCI
British Columbia Investment Management Corporation (BCI) is amongst the largest institutional investors in Canada, with C$250.4 billion in gross assets under management as of March 31, 2024. Based in Victoria, British Columbia, with offices in Vancouver, New York, and London, U.K., BCI manages a portfolio of diversified public and private market investments on behalf of its 29 British Columbia public sector clients.
With a global outlook, BCI integrates ESG factors into investment decisions and activities that convert savings into productive capital to meet clients’ risk and return requirements over time. Founded in 1999, BCI is a statutory corporation created by the Public Sector Pension Plans Act. For more information, visit BCI.ca or LinkedIn.
BCI is pleased to announce the reappointment of Donna Lommer and Weldon Cowan to the Board of Directors.
The Municipal Pension Board of Trustees has reappointed Donna for a three-year term through December 31, 2027. Donna is a member of the Audit Committee and was first appointed on January 1, 2019.
Donna is active on the board of trustees for the Municipal Pension Plan and is a past board member of the Healthcare Benefits Trust and Occupational Health & Safety Agency for Healthcare in British Columbia.
The College Pension Board of Trustees has reappointed Weldon for a three-year term through August 31, 2027. Weldon is a member of the Human Resources and Governance Committee and was first appointed on September 1, 2021.
Weldon is currently Chair of the College Pension Board of Trustees and Chair of the Interplan Trustee Education Committee. He was a Director of the BC Pension Corporation from 2012 to 2019. During that time, he served as Chair of the BC Pension Corporation Board of Directors for four years and vice-Chair for three years.
BCI’s Board is structured in accordance with the Public Sector Pension Plans Act. Of the seven-member Board, the four largest pension plan clients each appoint a member from their board of trustees, and the Minister of Finance appoints the other three — two of which must be representatives of clients.
As we continue to scale our private equity program, we remain committed to driving long-term value for our clients.”
Jim Pittman, Executive Vice President & Global Head of Private Equity
Mergermarket Fireside Chat
Watch as Jim Pittman, Executive Vice President & Global head, Private Equity sits down with Giovanni Amodeo of Mergermarket to discuss the evolving dynamics currently shaping the private equity market, and where BCI’s $30.7 billion private equity program is finding unique investment opportunities to further diversfy its global portfolio.
Republished with permission. Read the original article on Net Zero Investor
BCI’s Coulson: “private markets are well-suited to engagement”
Part 3 of NZI’s Stewardship Series looks at why the Canadian pension giant has become increasingly focused on private market stewardship
One of Canada’s largest institutional investors, British Columbia Investment Management Corporation (BCI) has been engaging companies on their climate impacts for over two decades.
BCI manages a portfolio of public and private market investments on behalf of 29 British Columbia public sector clients, including 10 public sector pension funds, three insurance funds, and various special purpose funds.
With approximately half of its $250bn AUM invested private markets, BCI is increasingly focused on stewardship in private markets. Net Zero Investor sat down with Jennifer Coulson, senior managing director & global head, ESG, to find out more.
Of the top 100 carbon emitters, only 30 are listed on a stock exchange. Is engaging with private markets an important part of your efforts to reach net zero by 2050?
One of our climate ambitions is to ensure at least 80 per cent of BCI’s carbon-intensive investments across asset classes have set mature net-zero aligned commitments by 2030. With about half of our $250bn in gross AUM invested in private markets, engagement with our private portfolio companies and partners is critical to achieving this goal, as well as managing climate risk and finding new ways to create value for our clients through the energy transition.
To support our increasing focus on engagement in private markets, we have grown the ESG teams embedded in our private equity and infrastructure and renewable resources programs, and recently developed a data platform that automates and provides on-demand access to climate information to empower portfolio managers and our investment teams.
While ESG stewardship in private markets is still developing, these asset classes are well suited for engagement, particularly to capture long-term sustainability trends. Investors are uniquely positioned and incentivised to support ESG performance and initiatives where it will increase risk-adjusted returns for clients. Through engagement, our partners and portfolio companies can tap into our team of experts and build value over a longer time horizon that can be realised at exit, which we see as a competitive advantage.
Can you provide some examples of specific engagements?
Over the past year, we have engaged extensively with five portfolio companies in our private equity programme, representing $1.6bn in net asset value, to establish and quantify ESG-related initiatives. Through this work, we have identified numerous opportunities for value creation and are working to execute on ESG-related initiatives that we believe can unlock hundreds of millions in value for our portfolio.
One example is PS Logistics, a leading flatbed truck transportation and logistics provider in the US. Collaborating with management, we quantified the financial benefit attributable to their “driver-first” culture. Management’s focus on prioritising drivers has led to distinct financial benefits such as reduced insurance premium costs, avoidance of costs in recruiting and training new drivers, lower energy costs through route optimisation, and greater market share from clients who are focused on sustainability in their supply chain.
Then, in our infrastructure & renewable resources program, we provided active oversight and strategic direction as a board member and owner of Mosaic Forest Management (Mosaic), a timberland management company located in Canada, on the development of its Big Coast Forest Climate Initiative. The overall direction of the company involves selling certified carbon credits generated from conservation of old forest habitats. BCI participated on a carbon credits committee to oversee the evaluation and execution of the initiative.
Is there a big difference between stewardship practices in private and public markets?
Stewardship across public and private markets have a shared overarching goal: leverage your rights as an owner to manage risk and create long-term value for clients and beneficiaries. In all cases, we prioritize material issues and opportunities, and focus our time and effort where we can have the highest impact.
The differences are often driven by the nature of the relationship between the investor and the investment. Private and public company owners have distinct levers of engagement available to them.
For example, investors in public markets typically benefit from consistent and predictable regulatory and listing requirements, all of which provide an annual opportunity to engage through proxy voting. As a large institutional investor, we often have access to company boards and management.
However, shareholder bases aren’t always aligned on climate issues. Our direct engagement efforts, therefore, require patience and persistence. Being effective means taking the time to build credibility with management teams as they begin to see us as a source of trusted advice. Where escalation is required, we can engage collaboratively or use tools like shareholder proposals as well as advocating for broader public policy changes (examples: methane, diversity, CA100+).
As you can imagine, our public markets portfolio is rather large so we also need to be selective and prioritise the most material issues and opportunities to engage on.
For private markets, there is less standardisation among companies, particularly around disclosures. This can make benchmarking and industry-level analysis, which is often needed for engagement, more challenging. However, concentrated ownership, the governance rights we hold with our portfolio companies, and regular access to management are clear advantages.
Where we play a governance role, there is oversight of management strategy, and we can set expectations for performance, including on climate change. Based on the holding periods for many private investments, our engagement priorities are typically focused on longer-term outcomes where we can work alongside the company to deliver value from sustainability initiatives over time.
Where we aren’t a direct owner, we engage our general partners to align expectations, exchange expertise, and collaborate on longer term opportunities. Last year, we engaged with more than 50 per cent of our private equity fund portfolio general partners, based on assets under management, on ESG and climate-related opportunities. This included conducting deep-dive educational sessions to showcase leading practices in ESG integration.
It sounds like, in certain cases, institutional investors can exert a fair amount of influence over companies in their private equity portfolios.
In public markets, change does happen, but it can be slower as companies have a broad and diverse shareholder base.
In private markets, investors with larger direct ownership stakes, which are often accompanied by governance rights like board representation, can have more influence on corporate strategy and management decisions, including climate action.
While there is more potential influence, engagement on ESG and climate change are often not standalone initiatives and tend to be integrated into broader discussions between the investor and company. Because of this structure, engagement in private markets functions more like a partnership – between the GP, LPs, and the portfolio company.
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As we continue to scale our private equity program, we remain committed to driving long-term value for our clients.”