A lesson in responsible investing

Learn how the plan’s investments are making a difference while securing your future.

Your pension is invested responsibly with environmental, social and governance (ESG) factors in mind.

British Columbia Investment Management Corporation (BCI) manages the plan’s investments. It does so under the guidance of policies and procedures set by the Teachers’ Pension Board of Trustees.

How the board and BCI approach responsible investing

Responsible investing is an important part of the plan’s investment approach. BCI and the board believe that companies with strong ESG practices are in a better position to create long-term value for the plan than are other companies with less favourable practices.

BCI is an active owner on behalf of the plan. That means it engages with companies to promote good corporate governance. It uses its influence as a shareholder to encourage companies to manage and report on ESG risks.

What are some key ESG factors?

• Environmental factors include how companies affect air and water pollution, carbon emissions, deforestation and energy efficiency.
• Social factors include equity, human rights, labour standards in the supply chain, and workplace health and safety.
• Governance factors can mean board compensation and structure, diversity, and transparency and disclosure.

Proxy voting and responsible investment

One of the channels BCI uses to engage companies on ESG matters is proxy voting.

Proxy voting describes a person or a firm casting a vote on behalf of another. BCI acts as the plan’s proxy and, as a shareholder, can represent the plan’s interests when voting.

Shareholders vote at annual general meetings on a range of company practices. During these meetings, BCI advocates for improvements in ESG disclosure and practices. These improvements support overall company performance and the value of the plan.

BCI consults with its clients to develop proxy voting guidelines. These guidelines express BCI’s view on specific issues and how it is likely to vote on them. They also help establish BCI’s expectations for how companies it invests in should address environmental and social risks.

You can read the proxy voting guidelines on BCI’s website. BCI consults with the plan to update these guidelines every two years. The updates reflect emerging best practices and evolving risks.

Learn more about responsible investing

Visit BCI’s website for more information, including:

• BCI’s Climate Action Plan
• The 2020 ESG Annual Report
• BCI’s actions as a founding signatory of the Principles for Responsible Investment
• BCI’s proxy voting guidelines and records