BCI Responsible Investing Annual Report

2020-BCI-ESG-AnnualReport_Final

bcIMC Responsible Investing Annual Report

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Amazon Human Capital Engagement BCI began to engage with Amazon (NASDAQ: AMZN) in 2019, focusing on its disclosures and commitments on environmental matters and human capital issues. We noted that the company lagged peers in disclosing social data on its workforce health and safety, turnover and other key human capital indicators. The COVID-19 pandemic heightened the need for such disclosures. In September 2020, BCI met with Amazon to discuss health and safety practices after several workers made allegations about weak safety protocols and mistreatment. In our view, the company failed to provide robust disclosures addressing these allegations, although it has since added some COVID-19- related disclosures. The company also emphasized extensive hiring of health and safety personnel over the past two years. Its COVID-19-specific responses included: provisions of face masks the day after the CDC recommended them; paid sick leave that included quarantine; staggered start times for warehouse workers; suspension of productivity targets, and elimination of clocking in and out, among other process changes. Amazon has started to provide disclosures and commitments with time-bound targets on environmental impacts in the past two years. Based on recent environmental and sustainability disclosures, we are hopeful the company will provide the social disclosures BCI is seeking. Refresco Makes Progress on Sustainable Development Direct and Collaborative Engagement BCI seeks to directly engage with companies in constructive dialogue to encourage improvements. We also collaborate with like-minded investors to increase our capacity to influence companies and learn about best practices across industries. In 2020, BCI's public markets team took part in seven collaborative engagement initiatives, covering 633 companies on ESG-related matters. Through our asset management activities with private companies, we use our influence to ensure management teams are monitoring and managing ESG opportunities and risks. Refresco Group B.V. (Refresco) is the world's largest independent bottler for retailers and branded beverage companies, with a production network of over 60 manufacturing sites in Europe and North America. BCI and PAI Partners, a global private equity firm with expertise in the food and beverage sector, acquired Refresco in 2018. BCI representatives sit on Refresco's Supervisory Board, which oversees the Executive Board and its policies, as well as the general affairs of the company and its affiliates. Refresco is held in BCI's private equity portfolio. We believe strengthening ESG and sustainability translates to better financial performance. By leveraging our board-level participation, our direct relationship with management, and active governance, we have been able to work with Refresco to shape the business to better drive value through ESG. Refresco's production platform covers over 60 manufacturing sites in Europe, the U.S., Canada and Mexico. Refresco 26 2020 ESG ANNUAL REPORT

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