ESG Strategy


bcIMC Responsible Investing Annual Report

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In providing investment management services to British Columbia's public sector, British Columbia Investment Management Corporation (BCI) partners with our 31 clients to generate investment returns that will help our clients provide a financially secure future to their members. Our primary mandate is to create long-term client wealth and protect the value of our clients' funds. The majority of funds we manage belong to pension plans. Pension funds have long-term obligations and seek a specified rate of return to fund these obligations. BCI is required to invest our clients' funds to generate sufficient returns. We adhere to the applicable requirements of the Pensions Benefits Standards Act and other legislation, as well as the legal contracts established by our clients. BCI provides our clients with the flexibility and efficiency of selecting the appropriate investment mix through our pooled funds that are diversified by asset class, region, and style. Like a mutual fund, a pooled fund combines our clients' contributions to invest in securities and other assets. With a global outlook, we seek investment opportunities that will meet our clients' risk and return requirements over time. As part of the prudent investment management of our clients' funds, we aim to mitigate the long-term financial risks that environmental, social, and governance (ESG) matters present. It begins with the integration of ESG considerations into our investment analysis, decisions, and processes in a consistent manner across the corporation. In 2006, BCI became a founding signatory to the Principles for Responsible Investment (PRI), and our approach aligns with the PRI principles for institutional investors. The principles are used to consider integrating ESG factors into investment processes and analysis, ownership activities, and interactions with other long-term investors. Long-term sustainability is the driving force behind BCI's investment approach. We believe ESG matters make a difference and that companies that employ robust ESG practices are in a better position to generate long-term value. We also believe improving the sustainability and integrity of global capital markets creates favourable economic conditions that benefit our clients over the long term. In a Snapshot ESG refers to any environmental, social, or governance factor that could positively or negatively affect the risk or return of an investment, sector, or fund. These factors can be company-specific, like board independence, or systemic, like climate change. ESG strategy We consider 'ESG strategy' to be synonymous with 'Responsible Investing' and 'Sustainable Investing' strategy. The ESG Strategy is an update to 2015's An Overview of BCI's Approach to Responsible Investing, introducing improvements to existing processes and cross-corporate consistency.

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