Environmental, social and governance issues are key to the board’s investment approach.
The plan’s strategy to address climate risk
In 2020, the board approved a three-year strategic plan, prioritizing climate risk to the investment portfolio. We committed to explore investing in a manner compatible with the Paris Agreement goal of keeping the global average temperature to well below 2oC above pre-industrial levels and to study the potential impacts of a sudden significant policy response.
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
- Providing ongoing education to Trustees regarding climate change concepts and associated investment risks and opportunities
The board voluntarily discloses information about the portfolio’s carbon footprint and other climate-related financial issues, in alignment with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD).
In the 2019 Annual Report, the board included the first climate-related financial disclosure. The board reported the value of plan assets invested in climate-related opportunities at about $1 billion and the plan’s carbon footprint for public equities, fixed income and domestic real estate holdings.
The board again disclosed climate-related financial information in the 2020 Annual Report. This disclosure includes key updates on the board’s and BCI’s actions related to climate change. As of December 31, 2020, the plan’s investments in climate-related opportunities grew to $1.2 billion.