ESG Strategy


bcIMC Responsible Investing Annual Report

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Page 8 of 16

ESG STRATEGY 8 Through engagement and advocacy, BCI applies its influence on companies in which we invest, our partners, and other participants in capital markets. We do this to increase transparency surrounding ESG risks, improve companies' long-term performance, and promote the stability and integrity of capital markets. Whether it is through voting rights, engagement activities, collaborative efforts, or board seats, BCI can affect market and corporate behaviour. Our strategy is to apply this influence to encourage companies to be transparent about their ESG risks, and to adopt good corporate governance and operational practices. This allows us to make informed investment decisions, improves companies' long-term performance, and is part of our role and responsibility as stewards of our clients' assets. BCI's Influence Priorities Corporate Level While each asset class has focus areas that are unique to the sectors and companies in which they invest, there are systemic ESG issues relevant to the entire portfolio. These corporate-wide engagement priorities guide our activities that will benefit the capital markets and lead to better overall value creation for our clients. To determine which ESG issues should be a priority at the corporate level, we conducted a materiality assessment at the total portfolio level (Figure 2, next page). Influence We consider: Likelihood of the issue occurring Level of potential reputational and financial impacts Exposure to the issue across asset classes and investments We combine these results with an assessment of the impact timeframe relevant to each ESG issue and the pervasiveness across sectors and geographies to establish our five corporate influence priorities (Figure 3, next page). Where possible, BCI will influence companies and other market participants to improve management in each of these priority areas and seek the best long- term outcomes for our clients. These priorities will be re-evaluated regularly by repeating the materiality review process.

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