BCI Responsible Investing Newsletter

BCI Responsible Investing Newsletter - Q1 2014

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FROM THE CEO/CIO The 2014 report on climate change released in March by the UN's Intergovernmental Panel on Climate Change is the most comprehensive study yet into the effects of climate change. It warns that global warming could undermine economic growth and highlights how adaptation can reduce the scale of its effects. Responding to climate change involves making clear choices about risks in a changing world. Climate change has long been one of the significant trends within bcIMC's focus, along with others that can affect our investments: demographics, technology, the growth of emerging markets, and capital market reforms, including regulatory. None of these factors are considered in isolation; all present risks and opportunities. bcIMC is a long-term, global investor. Eighty per cent of the funds we manage are pension plans, representing the retirement benefits of 514,000 individuals, whether collected today or 30 years from now. We are responsible for both increasing and protecting the long-term value of these funds. Our business involves taking on investment risk and pricing it accordingly while also having the ability to avoid or minimize those risks that are costly and will reduce the value of our investments. Risk management must take into account global issues with potentially widespread impacts – such as climate change. Returns are important: on average, $75 of every $100 a pension plan member receives in retirement benefits is provided by bcIMC's investment activities. We invest in companies and sectors that generate reliable returns. This includes the oil and gas industry – a significant part of the Canadian and global economy. Our experience over the past decade assures us that engaging with companies and sector representatives on environmental, social, and governance risks is an effective way to optimize long-term value. We are a responsible, active investor. The more companies that are well-positioned to manage climate challenges and secure opportunities, the better the overall long-term investment returns for our clients. With globalization and interconnectivity contributing to a complex world in today's capital markets, responsible investing has a growing role. I am pleased to introduce the first issue of the bcIMC Responsible Investing newsletter. This is one of the ways in which we are continuing to enhance the disclosure of our responsible investing activities. Doug Pearce, Chief Executive Officer / Chief Investment Officer bcIMC RESPONSIBLE INVESTING NEWSLETTER 2 ABOVE: Southcore Financial Centre, developed by bcIMC, is among the most energy-efficient complexes in downtown Toronto. It encompasses two LEED Gold-designed office towers and the 45-storey Delta Toronto, set to open in late 2014.

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