Read about the approach to responsible investing that guides the decisions of the Public Service Pension Board of Trustees and British Columbia Investment Management Corporation.
Environmental, social and governance
Responsible investing plays an important role in the management of funds for BC's Public Service Pension Plan. Companies that do a good job of managing environmental, social and governance (ESG) matters are believed to have less risk and perform better financially over the longer term.
The Public Service Pension Board of Trustees (board) and its investment manager, British Columbia Investment Management Corporation (BCI), are signatories to the United Nations-supported Principles for Responsible Investment (PRI). The PRI signatories are an international network of investors working together to put six responsible investing principles into practice. These investment principles are founded on the belief that an economically efficient and sustainable global financial system is necessary for creating long-term value. Each year, PRI signatories participate in an annual assessment of progress. This is a valuable tool used to benchmark the board's responsible investing practice against others. A standardized methodology is applied and each signatory is provided with transparency and assessment reports.
BCI, with the support of the board, embraces responsible investing through three core activities:
- Integrating ESG factors into investment analysis and decision making
- Active ownership
- Actively participating in the capital markets
BCI ranks among the top-performing investment managers globally in using the principles for responsible investment. BCI collaborates with other investors and organizations such as the Canadian Coalition for Good Governance, CDP (formerly the Carbon Disclosure Project), the International Corporate Governance Network and the Investor Network on Climate Risk.
In 2016, BCI also expanded its role in responsible investing through involvement in the 30% Club, as a member of the steering committee, which advocates for companies to enhance gender diversity and as a member of the Sustainability Accounting Standards Board which promotes standards of sustainability reporting.