Environmental, social and governance matters

Companies with strong environmental, social and governance (ESG) practices are better positioned to generate long-term value for investors than similar companies with less favourable practices. For this reason, BCI, as the board’s investment agent, integrates ESG considerations into its investment analysis, decisions, and processes. This helps ensure the plan fulfills its legal obligation to act in the best financial interest of all plan beneficiaries.

What are some of the key ESG factors?

• Environmental factors include systemic risks such as climate change, as well as how individual companies affect air and water pollution, carbon emissions, deforestation and energy efficiency
• Social factors include equity, human rights, labour standards, and workplace health and safety
• Governance factors can mean board compensation and structure, diversity, and transparency and disclosure

Influencing positive change

The board believes engagement can positively influence corporate behaviour. The board supports BCI’s ongoing engagement as a way for the plan to address risks of climate change and achieve a net-zero aligned portfolio. The goal is to apply influence with ESG factors in mind and show what the plan expects from the companies it is invested in.