Responsible investing

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.

Responsible investing beliefs

ESG factors and climate change present long-term material systemic risks to the plan. Actions to reduce greenhouse gas emissions to combat climate change, improve ESG practices through investor stewardship, select assets and advocate for appropriate public policies have a direct and indirect positive impact on the plan. Climate change responses create investment opportunities that the board and BCI have a responsibility to consider. It is consistent with the board’s fiduciary duty to act in the best financial interest of beneficiaries and consider wider stakeholder views and good corporate citizenship in its investment decision making.

The board considers responsible investing an important priority and continually reviews the following responsible investing beliefs to ensure they are current.

Environmental, social and governance factors for investment

Strong corporate governance
Good governance practices support stronger long-term performance and enhance shareholder value. A high-performing diverse board with a good balance of skills, expertise and independence is critical to achieving long-term success.

Strong environmental stewardship
Entities that take measures to protect the environment, ensuring compliance with environmental regulations, and are efficient users of resources are better positioned to add long-term value.

Active ownership
By being an active owner, we take action either directly or through our investment agent to steer entities in which we invest toward aligning with our beliefs. We also work with our investment agent to actively exercise our shareholder voting rights with the entities in which we invest.

Policy advocacy
Public policy and financial market regulation have an important impact on long-term investment returns. The board or its agents individually or in collaboration with other investors, will promote public policies that support the generation of adequate long-term investment returns and strengthen the fair and transparent regulation of financial markets. Public policy will support improved investment opportunities in the areas of ESG.

Transparency and disclosure
Entities that are transparent and disclose all relevant and material information enhance assessment and management of ESG risks and opportunities.

Responsible treatment of workers and communities
Entities that provide fair wages, benefits and working conditions, and allow for participation of stakeholders in the growth of the entity are more apt to create long-term value for investors and achieve long-term success.