Responsible investing

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

1. Environmental, social and governance matters

3. BCI’s climate action plan

5. Responsible investing: our journey

2. The plan’s strategy to address climate risk

4. Collaboration

Responsible investing: our journey

Our first concrete step toward integrating ESG into governance policies was to become a signatory to the Principles for Responsible Investment in 2007.

We remained a signatory until 2025. Being part of an international network of investors working together helped us better understand the investment implications of ESG issues and how to integrate ESG considerations into investment and ownership decisions. Through PRI reporting, we were able to measure our responsible investing progress. We also co-founded the Western North America PRI network and participated in the UN PRI Western North America Advisory Committee.

		Articulating our approach One of the plan partners—the Union of BC Municipalities—has provided input along the way. Through a 2015 convention resolution, UBCM asked the plan to develop a primer to shine a light on the climate situation. Both the board and BCI found the 2016 primer helpful as an input to strategic planning. For example, BCI published its first Climate Action Plan within two years following the primer’s publication. The board also partnered with BCI along the way and encouraged them to create a corporate-wide ESG strategy and to integrate ESG factors into the plan’s annual asset class reviews. The plan produced a second primer on climate action in 2021. In 2019 we revised the investment beliefs contained in our Statement of Investment Policies and Procedures, a key document that guides our investment oversight. These beliefs reflect our growing understanding of and maturity in responsible investment. We were one of the first large pension plans in Canada to voluntarily make climate-related financial disclosures. The plan has done this annually starting with the 2019 annual report.
		Growing together Through the years, the board has strengthened its voice by joining with others in investor policy statements. For example, in 2016 the board signed the Global Statement on Investor Obligations and Duties, acknowledging that investors must pay attention to long-term investment value drivers, including ESG issues in their investment processes. In 2021 we signed the influential Canadian Investor Statement on Climate Change. We have also joined our voices with other investor advocacy groups. We signed on to Climate Action 100+, are an associate member of SHARE, which supports institutional investors to become active owners and develop and implement responsible investment policies and practices, and most recently joined the Council of Institutional Investors.
		Continuing our journey After years of study and consideration, in 2022 we set a net-zero goal and interim target for the plan’s investment portfolio, setting us on a forward path that recognizes the risk that climate change presents to any long-term investor. Addressing this risk supports the plan’s objective of providing secure pensions to all current and future members. In 2024 we worked with an independent consultant to gain insight into our progress against our responsible investing objectives and our position among peer pension plans.
		Looking ahead In 2025 we began to explore collaborations with other investor advocacy groups and assessed the value of our PRI membership signatory status. We chose not to renew signatory status. We continue to be an industry leader in responsible investing. We continue to advocate for responsible investment and using ESG to mitigate risk to the plan. We remain an active partner in collaborative groups. We are committed to continuing to provide climate-related financial reporting as part of our Annual Report.