Responsible investing

Environmental, social and governance issues are key to the board’s investment approach.

The plan’s climate-related actions and financial disclosure

The board believes climate change presents a sizable systemic risk as well as opportunity for the plan’s portfolio. The board’s fiduciary duty is to best manage this risk and capitalize on opportunities. Investors and pension plans are responding to climate risks in many ways. Some are increasing their level of sustainable investing, some are shifting the composition of their portfolios and some are using their rights as investors to engage and vote in support of climate action by the companies they own.

The board and BCI agree on the approach that asset owners can make the biggest difference by engaging with companies to prepare for a low-carbon future rather than divesting, which would remove an opportunity for influence.

Trustees have educated themselves on the risks and opportunities posed by climate change. The board as a whole has advocated for climate action by participating in ClimateAction100+. Climate Action 100+ is an investor-led initiative that engages some of the world’s largest corporate greenhouse gas emitters to curb emissions in line with the Paris Accord’s goal of keeping global warming below two degrees and to strengthen their climate-related financial disclosures.

The board’s climate change actions also includes:

  • Climate scenario analysis/modelling to understand climate change impacts on the portfolio
  • Measuring and quantifying carbon exposure
  • Exploring sustainable investment opportunities (e.g., low carbon, green)
  • Advocating for carbon pricing
  • Supporting BCI in integrating climate change assessment into its asset management processes

The board voluntarily disclosed information about the portfolio’s carbon footprint and other climate-related financial issues in the 2019 Annual Report, in alignment with the recommendations outlined by the Financial Stability Board’s Taskforce on Climate-related Financial Disclosures (TCFD).