BCI Responsible Investing Overview

An Overview of BCI's Approach to Responsible Investing

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BCI'S APPROACH TO RESPONSIBLE INVESTING 2 Our primary mandate is to create long-term client wealth and protect the value of our clients' funds. The majority of the funds we manage belong to pension plans. As 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 the expected returns. BCI adheres to the applicable requirements of the Pensions Benefits Standards Act and other legislation, as well as the legal contracts established by our clients. Assessing and managing investment risk is an integral part of how we meet our responsibility. As part of the prudent investment management of our clients' funds, we aim to actively manage the long- term risks that ESG matters present, both now and into the future. This begins with the integration of ESG considerations into our investment analysis, decisions and processes. And as an active owner, we monitor ESG factors and engage with companies to raise awareness that good corporate governance is the over-arching framework for effective management of risks. We also use our influence as a shareholder to encourage companies to manage and report on their ESG risks. Returns are important: on average $75 of every $100 a pension plan member receives in retirement benefits is provided by BCI's investment activities. Many of our clients have thus specified that responsible investing should be implemented in a way that does not interfere with the efficient investment of their funds to meet their investment return objectives, which are in the best financial interests of their current and future beneficiaries. 1 BCI became a founding signatory to the Principles for Responsible Investment (PRI) in 2006. Our approach is aligned with the PRI which provides a set of principles for institutional investors to consider as they integrate environmental, social and governance factors into their investment processes and analysis, ownership activities and interactions with other long- term investors. This document outlines BCI's approach to responsible investing, our beliefs and guiding principles, as well as the international standards and initiatives that we look towards. In a Snapshot Responsible investing is an essential part of the investment beliefs shared by BCI and the pension funds and many of the other clients for which we invest. We believe that companies that do a good job of managing environmental, social and governance matters (ESG) have less risk and perform better financially over the longer term. 1 As specified in our clients' respective statements of investment policies and procedures

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