British Columbia Investment Management Corporation

Transcription

1 RI TRANSPARENCY REPOR T British Columbia Investment Management Corporation An investor initiative in partnership with UNEP Finance Initiative and UN Global Compact

2 About this report The PRI Reporting Framework is a key step in the journey towards building a common language and industry standard for reporting responsible investment (RI) activities. This RI Transparency Report is one of the key outputs of this Framework. Its primary objective is to enable signatory transparency on RI activities and facilitate dialogue between investors and their clients, beneficiaries and other stakeholders. A copy of this report will be publicly disclosed for all reporting signatories on the PRI website, ensuring accountability of the PRI Initiative and its signatories. This report is an export of the individual Signatory organisation s response to the PRI during the 2016 reporting cycle. It includes their responses to mandatory indicators, as well as responses to voluntary indicators the signatory has agreed to make public. The information is presented exactly as it was reported. Where an indicator offers a response option that is multiple-choice, all options that were available to the signatory to select are presented in this report. Presenting the information exactly as reported is a result of signatory feedback which suggested the PRI not summarise the information. As a result, the reports can be extensive. However, to help easily locate information, there is a Principles index which highlights where the information can be found and summarises the indicators that signatories complete and disclose. Understanding the Principles Index The Principles Index summarises the response status for the individual indicators and modules and shows how these relate to the six Principles for Responsible Investment. It can be used by stakeholders as an at-a-glance summary of reported information and to identify particular themes or areas of interest. Indicators can refer to one or more Principles. Some indicators are not specific to any Principle. These are highlighted in the General column. When multiple Principles are covered across numerous indicators, in order to avoid repetition, only the main Principle covered is highlighted. All indicators within a module are presented below. The status of indicators is shown with the following symbols: Symbol Status The signatory has completed all mandatory parts of this indicator The signatory has completed some parts of this indicator This indicator was not relevant for this signatory - The signatory did not complete any part of this indicator The signatory has flagged this indicator for internal review Within the table, indicators marked in blue are mandatory to complete. Indicators marked in grey are voluntary to complete. 1

3 Principles Index Organisational Overview Principle General Indicator Short description Status Disclosure OO 01 Signatory category and services Public OO 02 Headquarters and operational countries Public OO 03 Subsidiaries that are separate PRI signatories Public OO 04 Reporting year and AUM Public OO 05 Breakdown of AUM by asset class OO 06 How would you like to disclose your asset class mix Asset mix disclosed in OO 06 Public OO 07 Fixed income AUM breakdown Public OO 08 Segregated mandates or pooled funds Public OO 09 Breakdown of AUM by market Public OO 10 RI activities for listed equities Public OO 11 RI activities in other asset classes Public OO 12 Modules and sections required to complete OO End Module confirmation page - Public 2

4 Strategy and Governance Principle General Indicator Short description Status Disclosure SG 01 RI policy and coverage Public SG 02 Publicly available RI policy or guidance documents Public SG 03 Conflicts of interest Public SG 04 Public SG 05 RI goals and objectives Public SG 06 Main goals/objectives this year Public SG 07 RI roles and responsibilities Public SG 08 RI in performance management, reward and/or personal development Public SG 09 Collaborative organisations / initiatives Public SG 10 Promoting RI independently Public Dialogue with public policy makers or SG 11 Public standard setters SG 12 ESG issues in strategic asset allocation Public SG 13 SG 14 SG 15 SG 16 Long term investment risks and opportunity Allocation of assets to environmental and social themed areas ESG issues for internally managed assets not reported in framework ESG issues for externally managed assets not reported in framework Public Public Public Public SG 17 Innovative features of approach to RI Public SG End Module confirmation page - 3

5 Indirect Manager Selection, Appointment and Monitoring Principle General Indicator Short description Status Disclosure Role of investment consultants/fiduciary SAM 01 Public managers RI factors in selection, appointment and SAM 02 Public monitoring across asset classes Breakdown by passive, quantitative, SAM 03 Public fundamental and other active strategies SAM 04 ESG incorporation strategies Public SAM 05 Selection processes (LE and FI) Public SAM 06 SAM 07.1 SAM SAM 08 SAM 09 Evaluating engagement and voting practices in manager selection (listed equity/fixed income) Appointment processes (listed equity/fixed income) Appointment processes (listed equity/fixed income) Monitoring processes (listed equity/fixed income) Monitoring on active ownership (listed equity/fixed income) n/a Public Public Public n/a SAM 10 Percentage of (proxy) votes n/a SAM 11 SAM 12 Percentage of externally managed assets managed by PRI signatories Examples of ESG issues in selection, appointment and monitoring processes Public Public SAM 13 Disclosure of RI considerations Public SAM End Module confirmation page - 4

6 Direct - Listed Equity Incorporation Principle General Indicator Short description Status Disclosure LEI 01 Breakdown by passive, quantitative, fundamental and other active strategies Public LEI 02 Reporting on strategies that are <10% of actively managed listed equities n/a LEI 03 Percentage of each incorporation strategy Public LEI 04 Type of ESG information used in investment decision Public LEI 05 Information from engagement and/or voting used in investment decisionmaking Public LEI 06 Types of screening applied Public LEI 07 Processes to ensure screening is based on robust analysis Public LEI 08 Processes to ensure fund criteria are not breached Public LEI 09 Types of sustainability thematic funds/mandates Public LEI 10 Review ESG issues while researching companies/sectors Public LEI 11 Processes to ensure integration is based on robust analysis Public LEI 12 Aspects of analysis ESG information is integrated into Public LEI 13 ESG issues in index construction Public LEI 14 How ESG incorporation has influenced portfolio composition Public LEI 15 Measurement of financial and ESG outcomes of ESG incorporation Public LEI 16 Examples of ESG issues that affected your investment view / performance - n/a LEI 17 Disclosure of approach to ESG incorporation Public LEI End Module confirmation page - 5

7 Direct - Listed Equity Active Ownership Principle General Indicator Short description Status Disclosure LEA 01 Description of approach to engagement Public LEA 02 Reasoning for interaction on ESG issues Public LEA 03 Process for identifying and prioritising engagement activities Public LEA 04 Objectives for engagement activities Public LEA 05 Process for identifying and prioritising collaborative engagement Public LEA 06 Objectives for engagement activities Public LEA 07 Role in engagement process n/a LEA 08 LEA 09 Monitor / discuss service provider information Share insights from engagements with internal/external managers n/a Public LEA 10 Tracking number of engagements Public LEA 11 Number of companies engaged with, intensity of engagement and effort Public LEA 12 Engagement methods Public LEA 13 Engagements on E, S and/or G issues Public LEA 14 Companies changing practices / behaviour following engagement Public LEA 15 Examples of ESG engagements Public LEA 16 Disclosure of approach to ESG engagements Public LEA 17 Voting policy & approach Public LEA 18 Typical approach to (proxy) voting decisions Public LEA 19 Percentage of voting recommendations reviewed n/a LEA 20 Confirmation of votes Public LEA 21 Securities lending programme Public LEA 22 Informing companies of the rationale of abstaining/voting against management Public LEA 23 Percentage of (proxy) votes cast Public LEA 24 Proportion of ballot items that were for/against/abstentions Public LEA 25 Shareholder resolutions Public LEA 26 Examples of (proxy) voting activities Public LEA 27 Disclosing voting activities Public LEA End Module confirmation page - 6

8 Direct - Fixed Income Principle General Indicator Short description Status Disclosure FI 01 Breakdown by passive,active strategies Public FI 02 Option to report on <10% assets n/a FI 03 Breakdown by market and credit quality Public FI 04 Incorporation strategies applied Public FI 05 ESG issues and issuer research Public FI 06 Processes to ensure analysis is robust Public FI 07 Types of screening applied Public FI 08 Negative screening - overview and rationale Public FI 09 Examples of ESG factors in screening process Public FI 10 Screening - ensuring criteria are met Public FI 11 Thematic investing - overview n/a FI 12 Thematic investing - themed bond processes n/a FI 13 Thematic investing - assessing impact n/a FI 14 Integration overview n/a FI 15 Integration - ESG information in investment processes n/a FI 16 Integration - E,S and G issues reviewed n/a FI 17 ESG incorporation in passive funds n/a FI 18 Engagement overview and coverage Public FI 19 Engagement method Public FI 20 Engagement policy disclosure Public FI 21 Financial/ESG performance Public FI 22 Examples - ESG incorporation or engagement Public FI 23 Communications Public FI End Module confirmation page - 7

9 Direct Private Equity Principle General Indicator Short description Status Disclosure PE 01 Breakdown of investments by strategy Public PE 02 Typical level of ownership Public PE 03 Description of approach to RI Public PE 04 Investment guidelines and RI Public PE 05 Fund placement documents and RI Public PE 06 Formal commitments to RI Public PE 07 Incorporating ESG issues when selecting investments Public PE 08 Types of ESG information considered in investment selection Public PE 09 Encouraging improvements in investees Public PE 10 ESG issues impact in selection process Public PE 11 Proportion of companies monitored on their ESG performance Public PE 12 Proportion of portfolio companies with sustainability policy Public PE 13 Actions taken by portfolio companies to incorporate ESG issues into operations Public PE 14 Type and frequency of reports received from portfolio companies Public PE 15 Disclosure of ESG issues in pre-exit Public PE 16 PE 17 PE 18 ESG issues affected financial/esg performance Examples of ESG issues that affected your PE investments Disclosure of ESG information to public and clients/beneficiaries Public Public Public PE 19 Approach to disclosing ESG incidents Public PE End Module confirmation page - 8

10 Direct - Property Principle General Indicator Short description Status Disclosure PR 01 Breakdown of investments Public PR 02 Breakdown of assets by management Public PR 03 Largest property types Public PR 04 Responsible Property Investment (RPI) policy Public PR 05 Fund placement documents and RI Public PR 06 Formal commitments to RI Public PR 07 Incorporating ESG issues when selecting investments Public PR 08 Types of ESG information considered in investment selection Public PR 09 ESG issues impact in selection process Public PR 10 ESG issues in selection, appointment and monitoring of third-party property managers Public PR 11 ESG issues in post-investment activities Public PR 12 Proportion of assets with ESG targets that were set and monitored Public PR 13 Certification schemes, ratings and benchmarks Private PR 14 Proportion of developments and refurbishments where ESG issues were Public considered PR 15 Proportion of property occupiers that were engaged with Public PR 16 Proportion of green leases or MOUs referencing ESG issues Public PR 17 Proportion of assets engaged with on community issues Public PR 18 ESG issues affected financial/esg performance Public PR 19 Examples of ESG issues that affected your property investments Public PR 20 Disclosure of ESG information to public and clients/beneficiaries Public PR End Module confirmation page - 9

11 Direct - Infrastructure Principle General Indicator Short description Status Disclosure INF 01 Breakdown of investments Public INF 02 Breakdown of assets by management Public INF 03 Largest infrastructure Public INF 04 Description of approach to RI Public INF 05 Responsible investment policy for infrastructure Public INF 06 Fund placement documents and RI Public INF 07 Formal commitments to RI Public INF 08 Incorporating ESG issues when selecting investments Public INF 09 ESG advice and research when selecting investments Public INF 10 Examples of ESG issues in investment selection process Public INF 11 Types of ESG information considered in investment selection Public INF 12 ESG issues impact in selection process Public ESG issues in selection, appointment INF 13 n/a and monitoring of third-party operators INF 14 ESG issues in post-investment activities Public INF 15 INF 16 INF 17 INF 18 INF 19 INF 20 INF 21 INF 22 Proportion of assets with ESG performance targets Proportion of portfolio companies with ESG/sustainability policy Type and frequency of reports received from investees Proportion of maintenance projects where ESG issues were considered Proportion of stakeholders that were engaged with on ESG issues ESG issues affected financial/esg performance Examples of ESG issues that affected your infrastructure investments Disclosure of ESG information to public and clients/beneficiaries Public Public Public Public Public Public Public Public INF 23 Approach to disclosing ESG incidents Public INF End Module confirmation page - 10

12 British Columbia Investment Management Corporation Reported Information Public version Organisational Overview PRI disclaimer This document presents information reported directly by signatories. This information has not been audited by the PRI Secretariat or any other party acting on their behalf. While this information is believed to be reliable, no representations or warranties are made as to the accuracy of the information presented, and no responsibility or liability can be accepted for any error or omission. 11

13 Basic Information OO 01 Mandatory Public Gateway/Peering General OO 01.1 Select the services you offer. Fund management % of assets under management (AUM) in ranges <10% 10-50% >50% Fund of funds, manager of managers, sub-advised products Other, specify Execution and advisory services OO 02 Mandatory Public Peering General OO 02.1 Select the location of your organisation s headquarters. Canada OO 02.2 Indicate the number of countries in which you have offices (including your headquarters) >10 OO 02.3 Indicate the approximate number of staff in your organisation in full-time equivalents (FTE). FTE 327 OO 03 Mandatory Public Descriptive General OO 03.1 Indicate whether you have subsidiaries within your organisation that are also PRI signatories in their own right. Yes No OO 04 Mandatory Public Gateway/Peering General 12

14 OO 04.1 Indicate the year end date for your reporting year. 31/12/2016 OO 04.2 Indicate your total AUM at the end of your reporting year, excluding subsidiaries you have chosen not to report on. trillions billions millions thousands hundreds Total AUM Currency CAD Assets in USD OO 04.4 Additional information. [Optional] Net assets are reported as at December 31, 2016, except for illiquid assets (Real Estate, Private Equity and Infrastructure) which are audited values as of December 31, Audited 2016 values for these asset classes will not be available within this PRI reporting period. However, bcimc is confident that the percentage ranges reported for this period will not be significantly affected. OO 06 Mandatory Public Descriptive General New selection options have been added to this indicator. Please review your prefilled responses carefully. OO 06.1 How you would like to disclose your asset class mix. as percentage breakdown as broad ranges Internally managed (%) Externally managed (%) Listed equity 10-50% 10-50% Fixed income 10-50% 0 Private equity <10% <10% Property 10-50% <10% Infrastructure <10% <10% Commodities 0 0 Hedge funds

15 Forestry <10% <10% Farmland <10% <10% Inclusive finance 0 0 Cash <10% 0 Other (1), specify 0 <10% Other (2), specify 0 0 'Other (1)' specified An alternative passive risk balanced asset allocation strategy. OO 06.2 Publish our asset class mix as per attached image [Optional]. OO 07 Mandatory to Report Voluntary to Disclose Public Gateway General OO 07.1 Provide to the nearest 5% the percentage breakdown of your Fixed Income AUM at the end of your reporting year, using the following categories. Internally managed 65 SSA 10 Corporate (financial) 25 Corporate (non-financial) 0 Securitised Total 100% OO 08 Mandatory to Report Voluntary to Disclose Public Peering General 14

16 New selection options have been added to this indicator. Please review your prefilled responses carefully. OO 08.1 Provide a breakdown of your organisation s externally managed assets between segregated mandates and pooled funds. 15

17 Asset class breakdown Segregated mandate(s) Pooled fund(s) [a] Listed equity [f] Private equity [g] Property [h] Infrastructure [k] Forestry [l] Farmland [o] Other (1), specify Total externally managed assets 0% <10% 10-50% >50 % 0% <10% 10-50% >50 % 0% <10% 10-50% >50 % 0% <10% 10-50% >50 % 0% <10% 10-50% >50 % 0% <10% 10-50% >50 % 0% <10% 10-50% >50 % Please ensure the entire table (both columns combined) totals to 100% 0% <10% 10-50% >50 % 0% <10% 10-50% >50 % 0% <10% 10-50% >50 % 0% <10% 10-50% >50 % 0% <10% 10-50% >50 % 0% <10% 10-50% >50 % 0% <10% 10-50% >50 % OO 09 Mandatory to Report Voluntary to Disclose Public Peering General 16

18 OO 09.1 Indicate the breakdown of your organisation s AUM by market. Developed Markets Emerging, Frontier and Other Markets 0% <10% 10-50% >50 % 0% <10% 10-50% >50 % Total 100% Gateway asset class implementation indicators OO 10 Mandatory Public Gateway General OO 10.1 Select the direct or indirect ESG incorporation activities your organisation implemented for listed equities in the reporting year. We incorporate ESG in our investment decisions on our internally managed assets We address ESG incorporation in our external manager selection, appointment and/or monitoring processes We do not incorporate ESG in our directly managed listed equity and/or we do not address ESG incorporation in our external manager selection, appointment and/or monitoring processes. OO 10.2 Select the direct or indirect engagement activities your organisation implemented for listed equity in the reporting year. We engage with companies on ESG factors via our staff, collaborations or service providers We require our external managers to engage with companies on ESG issues on our behalf We do not engage directly and do not require external managers to engage with companies on ESG factors. OO 10.3 Select the direct or indirect voting activities your organisation implemented for listed equity in the reporting year We cast our (proxy) votes directly or via dedicated voting providers We require our external managers to vote on our behalf We do not cast our (proxy) votes directly and do not require external managers to vote on our behalf OO 11 Mandatory Public Gateway General 17

19 OO 11.1 Select the internally managed asset classes in which you addressed ESG incorporation into your investment decisions and/or your active ownership practices (during the reporting year). Fixed income SSA Fixed income corporate (financial) Fixed income corporate (non-financial) Private equity Property Infrastructure Forestry Farmland Cash None of the above OO 11.2 Select the externally managed assets classes where you addressed ESG incorporation and/or active ownership in your external manager selection, appointment and/or monitoring processes (during the reporting year) Private equity Property Infrastructure Forestry Farmland Other (1) None of the above 'Other (1)' [as defined in OO 05] An alternative passive risk balanced asset allocation strategy. OO 12 Mandatory Public Gateway General You will need to make a selection in OO 12.1onlyif you have any voluntary modules that you can choose to report on. OO 12.1 Select from below any additional applicable modules or sections you would like to report on voluntarily. You are only required to report on asset classes that represent 10% or more of your AUM. Core modules Organisational Overview Strategy and Governance RI implementation directly or via service providers 18

20 Direct - Listed Equity incorporation Listed Equity incorporation Engagements (Proxy) voting Direct - Listed Equity active ownership Direct - Fixed Income Fixed income - SSA Fixed income - Corporate (financial) Fixed income - Corporate (non-financial) Direct - Other asset classes with dedicated modules Private Equity Property Infrastructure RI implementation via external managers Indirect - Selection, Appointment and Monitoring of External Managers Listed Equities Private Equity Property Infrastructure Closing module Closing module 19

21 British Columbia Investment Management Corporation Reported Information Public version Strategy and Governance PRI disclaimer This document presents information reported directly by signatories. This information has not been audited by the PRI Secretariat or any other party acting on their behalf. While this information is believed to be reliable, no representations or warranties are made as to the accuracy of the information presented, and no responsibility or liability can be accepted for any error or omission. 20

22 Investment policy SG 01 Mandatory Public Core Assessed General New selection options have been added to this indicator. Please review your prefilled responses carefully. SG 01.1 Indicate if you have an investment policy that covers your responsible investment approach. Yes SG 01.2 Indicate the components/types and coverage of your policy. Select all that apply Policy components/types Policy setting out your overall approach Formalised guidelines on environmental factors Formalised guidelines on social factors Formalised guidelines on corporate governance factors Asset class-specific RI guidelines Sector specific RI guidelines Screening / exclusions policy Engagement policy (Proxy) voting policy Other, specify (1) Other, specify(2) Coverage by AUM Applicable policies cover all AUM Applicable policies cover a majority of AUM Applicable policies cover a minority of AUM SG 01.4 Indicate what norms you have used to develop your investment policy that covers your responsible investment approach. UN Global Compact Principles UN Guiding Principles on Business and Human Rights Universal Declaration of Human Rights International Bill of Human Rights International Labour Organization Conventions United Nations Convention Against Corruption OECD Guidelines for Multinational Enterprises Other, specify (1) other (1) description International Finance Corporation Performance Standards on Environmental and Social Sustainability 21

23 Other, specify (2) other (2) description No OECD Principles for Corporate Governance Other, specify (3) None of the above SG 01.6 Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional] bcimc's approach is based on three core activities: integrating ESG into our investment analysis and decisionmaking processes; being an active owner (covering proxy voting and engagement with publicly traded companies, as well as serving as a director on the boards of our privately-held companies); and being an active participant in the capital markets (focusing on submissions to regulatory bodies, participating in PRI committees and other organizations that address systemic risks, guidelines for responsible investing, as well as improving the investment environment for all investors). This is disclosed in our document, An Overview of bcimc's Approach to Responsible Investing. SG 02 Mandatory Public Core Assessed PRI 6 New selection options have been added to this indicator. Please review your prefilled responses carefully. SG 02.1 Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document. Policy setting out your overall approach URL URL/Attachment URL Attachment (will be made public) Formalised guidelines on environmental factors URL URL/Attachment 22

24 URL Attachment (will be made public) Formalised guidelines on social factors URL URL/Attachment URL Attachment (will be made public) Formalised guidelines on corporate governance factors URL URL/Attachment URL Attachment (will be made public) Asset class-specific RI guidelines Screening / exclusions policy URL URL/Attachment URL Attachment (will be made public) Engagement policy URL URL/Attachment 23

25 URL Attachment (will be made public) (Proxy) voting policy URL URL/Attachment URL Attachment (will be made public) We do not publicly disclose our investment policy documents SG 02.4 Additional information [Optional]. bcimc is currently reviewing its investment beliefs. Once approved, these will be added to the website. SG 03 Mandatory Public Core Assessed General SG 03.1 Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process. Yes SG 03.2 Describe your policy on managing potential conflicts of interest in the investment process. Conflicts of interest in the investment process are not likely to occur. Our clients do not decide on individual investments; they establish investment policy, asset allocation and determine participation in particular pooled funds though not the underlying investments. Individual members of our client boards do not have any authority to direct bcimc in investment decisions. Clients establish investment policies that clearly address the roles and responsibilities of all parties involved with their respective fund/plan. bcimc is responsible for ensuring client funds are managed in accordance with the investment policy. All employees are bound by the Corporate Code of Ethics and Professional Conduct (includes a commitment to responsible investment as one of the 14 principles) and must certify compliance annually. bcimc is required by its clients to have a comprehensive and thorough conflict of interest policy that meets or exceeds the standards established for the investment industry by the CFA Institute and is required to disclose any material breach by employees or its agents. bcimc also has a Code of Conduct for Directors and board members do not have any authority, individually or as a board, to direct investments. No SG 04 Voluntary Public Descriptive General 24

26 SG 04.1 Indicate if your organisation has a process for identifying and managing incidents that occur within portfolio companies. Yes No SG 04.2 Describe your process on managing incidents Portfolio companies where we sit on the board and/or have a significant equity interest will notify bcimc of potential and/or evolving issues within their operations. The portfolio managers will interact with management to understand and monitor their activities, and where appropriate provide strategic oversight and input. bcimc's investment professionals also sit on the board of directors, advisory committees, and other sub-committees to fulfil their asset management role. These reporting structures also enable oversight of incidence and long-term risks. Objectives and strategies SG 05 Mandatory Public Gateway/Core Assessed General SG 05.1 Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities. Quarterly or more frequently Biannually Annually Less frequently than annually Ad-hoc basis It is not reviewed SG 05.2 Additional information. [Optional] Each year, our Executive Management Team and Board of Directors are briefed on the results of our PRI Assessment Survey. If significant gaps exist, decisions are then contemplated to address those gaps. SG 06 Voluntary Public Descriptive General SG 06.1 List the main responsible investment objectives that your organisation set for the reporting year. Responsible investment processes Provide training on ESG incorporation Provide training on ESG engagement Improved communication of ESG activities within the organisation Key performance indicator The aim is to enhance corporate wide awareness of bcimc's principles and activities. This is tracked through the views of articles and pages. 25

27 Progress achieved In 2016, bcimc enhanced its internal communication activities relating to responsible investing. A dedicated section was added to its intranet -- this provides an overview of bcimc's approach, principles, and available documents. bcimc's internal communication strategy includes a responsible investing series. Topics communicated to staff during 2016 included new committee memberships (engagement and advisory related), updates to engagement guidelines, beliefs and expectations on key issues (climate change, occupational health and safety, board of directors), results of bcimc's 2015 PRI Assessment, and reports (PRI, organizations, and media) that mention bcimc's responsible investing initiatives. In 2016 bcimc developed a video communicating its beliefs, expectations, and approach to responsible investing. This video was integrated into a staff training module and incorporated into the intranet. Improved engagement to encourage change with regards to management of ESG issues Key performance indicator Public Equities: track/monitor number of companies engaged. Infrastructure/Renewable Resources: health & safety incidents and reporting. Progress achieved Public Equities: directly engaged with 73 companies and collaboratively engaged with 192 companies. Infrastructure: directly engaged with two portfolio companies to improve worker safety and/or provide regular reporting to the board. Improved ESG incorporation into investment decision making processes Other, specify (1) Other, specify (2) Other, specify (3) Financial performance of investments Increase portfolio performance by consideration of ESG factors Other, specify (1) Other, specify (2) Other, specify (3) ESG characteristics of investments Over or underweight companies based on ESG characteristics Improve ESG ratings of portfolio Setting carbon reduction targets for portfolio Other, specify (1) Other, specify (2) Other, specify (3) 26

28 Other activities Joining and/or participation in RI initiatives Key performance indicator Improvements in our PRI assessment results. Progress achieved In 2016, bcimc joined PRI's advisory committee on credit ratings, as well as joined the 30% Club (advocates for gender diversity at board and management level), the Chartered Professional Accountants Canada's climate disclosure review adivisory committee, the Global Asset Owner Forum (fosters exchange of ideas and opinions in global public pension funds on ESG), and the Sustainability Accounting Standards Board's investor advisory group. bcimc served its third consecutive year on the PRI's private equity advisory committee and participated in a related working group on an ESG project. bcimc also addressed and moderated 13 events on responsible investing -- topics included building sustainable capital, active ownership, board leadership on compensation, investing in a low carbon world, ESG in fixed income investing, investor requirements related to CSR reports, and responsible investing practices of large institutional investors. Events were held in Canada, the U.S., and Hong Kong. Encouraging others to join a RI initiative Key performance indicator Reaching out to our peers to join the 30% Club Canada as investor members. Progress achieved The 30% Club Canada membership has grown within the year. Documentation of best practice case studies Key performance indicator Improvements in our PRI assessment results. Progress achieved In 2016, bcimc contributed a case study to the PRI published report, A Practical Guide to ESG Integration in Equity Investing. bcimc's submission focussed on the approach followed to assess a potential investment by using both the analytical expertise of fundamental research and ESG specialists during the due diligence of a utility company's initial public offering. Using case studies to demonstrate engagement and ESG incorporation to clients Key performance indicator Improvements in our PRI assessment results. 27

29 Progress achieved In 2016, three theme-based newsletters and an annual report were released publicly and distributed to clients. Every publication includes case studies to demonstrate bcimc's activities and responsible investing in action. For example in the newsletters, four case studies related to managing climate change risk in the real estate and infrastructure portfolios; four case studies related to occupational health and safey in the real estate, infrastructure, and public equities portfolios; and one case study related to board of directors in a publicly-traded company. In the annual report, three case studies address the integration of responsible investing into the activities in public equities, private equity, and renewable resources. Case studies are also integrated into presentations for client meetings. Other, specify (1) other description (1) Production of corporate video outlining bcimc's beliefs, principles, and approach to responsible investing. Key performance indicator Improvements in our PRI assessment results. Progress achieved This video has been integrated into a staff training module and client orientation workshops. The video is also used in client and stakeholder meetings. The video will be more broadly distributed to stakeholders in Other, specify (2) Other, specify (3) Governance and human resources SG 07 Mandatory Public Core Assessed General SG 07.1 Indicate the roles present in your organisation and for each, indicate whether they have oversight and/or implementation responsibilities for responsible investment. 28

30 Roles present in your organisation Board members or trustees Oversight/accountability for responsible investment Implementation of responsible investment No oversight/accountability or implementation responsibility for responsible investment Chief Executive Officer (CEO), Chief Investment Officer (CIO), Investment Committee Oversight/accountability for responsible investment Implementation of responsible investment No oversight/accountability or implementation responsibility for responsible investment Other Chief-level staff or head of department, specify All asset class SVPs. Oversight/accountability for responsible investment Implementation of responsible investment No oversight/accountability or implementation responsibility for responsible investment Portfolio managers Oversight/accountability for responsible investment Implementation of responsible investment No oversight/accountability or implementation responsibility for responsible investment Investment analysts Oversight/accountability for responsible investment Implementation of responsible investment No oversight/accountability or implementation responsibility for responsible investment Dedicated responsible investment staff Oversight/accountability for responsible investment Implementation of responsible investment No oversight/accountability or implementation responsibility for responsible investment External managers or service providers Investor relations Other role, specify (1) Communication Other description (1) Oversight/accountability for responsible investment Implementation of responsible investment No oversight/accountability or implementation responsibility for responsible investment Other role, specify (2) 29

31 SG 07.2 For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities. Our Board of Directors is briefed on our PRI Assessment results each year as is our Executive Management Team so they are aware of our results and if action is required in areas of concern. The Board is informed and receives all RI materials and updates. Portfolio Managers and Analysts are responsible for integrating responsible investing into their practices, procedures, and responsibilities during due diligence and ongoing asset management. In the Public Equity department, analysts are assigned to companies and are responsible for monitoring and assigning ESG scores. Dedicated RI staff in the Public Equities department are responsible for assessomg and voting all proxies, engaging with companies, leading and/or participating collaborative engagements, as well as preparing submissions to regulators and public policy bodies. Our Corporate Communication group is accountable for the quarterly communication to clients and the public in accordance with the approved responsible investing communication strategy. The group is also accountable for informing staff of responsible investing initiatives and activities. SG 07.3 Indicate the number of dedicated responsible investment staff your organisation has. Number 4 SG 07.4 Additional information. [Optional] There are four full-time employees dedicated to ESG in the Public Equities department (senior manager, manager, and two analysts). The responsibility for ESG is integrated into the roles of all senior portfolio managers, portfolio managers, and analysts for all asset classes. In 2016 bcimc created a dedicated position in Investment Risk, Strategy & Research to assess and analyze ESG risk. The recruitment process continues into SG 08 Voluntary Public Additional Assessed General SG 08.1 Indicate if your organisation s performance management, reward and/or personal development processes have a responsible investment element. Board members/board of trustees Responsible investment included in personal development and/or training plan SG 08.2 Describe any activities undertaken during the reporting year to develop and maintain Board members skills and knowledge in relation to responsible investment. All incoming Board members have an orientation session that includes RI briefings. Other Board members are encourage to attend the orientation sessions to refresh their knowledge. Directors are also encouraged to attend conferences and seminars that address responsible investing. None of the above Chief Executive Officer (CEO), Chief Investment Officer (CIO), Investment Committee 30

32 Responsible investment KPIs and/or goals included in objectives Responsible investment included in appraisal process Variable pay linked to responsible investment performance Responsible investment included in personal development and/or training plan None of the above Other C-level staff or head of department Asset class SVPs Responsible investment KPIs and/or goals included in objectives Responsible investment included in appraisal process Variable pay linked to responsible investment performance Responsible investment included in personal development and/or training plan None of the above Portfolio managers Responsible investment KPIs and/or goals included in objectives Responsible investment included in appraisal process Variable pay linked to responsible investment performance Responsible investment included in personal development and/or training plan None of the above Investment analysts Responsible investment KPIs and/or goals included in objectives Responsible investment included in appraisal process Variable pay linked to responsible investment performance Responsible investment included in personal development and/or training plan None of the above Dedicated responsible investment staff Responsible investment KPIs and/or goals included in objectives Responsible investment included in appraisal process Variable pay linked to responsible investment performance Responsible investment included in personal development and/or training plan None of the above Other role (1) [from SG 07] Communication Responsible investment KPIs and/or goals included in objectives Responsible investment included in appraisal process Variable pay linked to responsible investment performance Responsible investment included in personal development and/or training plan None of the above 31

33 SG 08.3 Provide any additional information on your organisation s performance management, reward and/or personal development processes in relation to responsible investment. Responsible investing accountabilities and objectives are outlined in the scorecards of staff who are directly involved with implimenting and communicating bcimc's RI initiatives. Training and development plans also include courses, seminars, and conferences on responsible investing matters. Promoting responsible investment SG 09 Mandatory Public Core Assessed PRI 4,5 New selection options have been added to this indicator. Please review your prefilled responses carefully. SG 09.1 Select the collaborative organisation and/or initiatives of which your organisation is a member or in which it participated during the reporting year, and the role you played. Select all that apply Principles for Responsible Investment Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Collaborative Initiatives: Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] Advisory Committee on Credit Ratings: member Human Rights in Extractive Sector: steering committee member; bcimc helped lay the ground work for this ongoing engagement Hydraulic Fracturing: committee member and a lead investor that engaged four Canadian companies Labour Standards in the Agricultural Supply Chain: served as a steering committee member and engaged various companies Listed Equity Integration Sub-Committee: member Policy Advisory Committee: chair Private Equity Advisory Committee: member Sustainable Financial System Advisory Group: member Sustainable Stock Exchanges: member of working group Case Study: contributed a case study to the published report, A practical guide to ESG integration for equity investing. Consultations: two responses to PRI consultations - one regarding recognizing diversity and strengthening accountabilitiy, and one on sustainable financial system, principles, and impacts. PRI Events: Addressed PRI 10-Year Global Workshop Series; topic - ESG Integration: Different perspectives across the Investment Value Chain (Toronto, Canada); addressed Western North American PRI Network (topic - Responsible Investing Education (Berkeley, U.S.); sponsored two PRI events -- PRI Networking Signatory Event (Vancouver, Canada) and Western North American PRI Network Conference (Vancouver, Canada) 32

34 AFIC La Commission ESG Asian Corporate Governance Association Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] We participate in regular conference calls with staff and other investor members to stay informed on governance developments in the region and to share our experience and issues of concerns; we support the association's regulatory efforts by providing comments on public policy submissions and by endorsing submissions to regulators as part of our own submissions; attended their annual conference as well as participated in an investor delegation to Japan and South Korea. Australian Council of Superannuation Investors BVCA Responsible Investment Advisory Board CDP Climate Change Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] bcimc has been a signatory since 2006 and became an investor member in As an investor member, bcimc contributes financially to the organization. We actively encourage companies to align their disclosure with the CDP framework. CDP Forests CDP Water Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced 33

35 Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] bcimc has been a supporting financial member of the CDP Water Program since inception. We use the information provided by CDP Water to understand how the companies we invest in address risk and opportunities. CFA Institute Centre for Financial Market Integrity Code for Responsible Investment in SA (CRISA) Code for Responsible Finance in the 21st Century Council of Institutional Investors (CII) ESG Research Australia Eumedion EVCA Responsible Investment Roundtable Extractive Industries Transparency Initiative (EITI) Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] bcimc has been an investor signatory since Participation includes conference calls with investor representatives and promotion of EITI to portfolio companies. Global Investors Governance Network (GIGN) Global Impact Investing Network (GIIN) Global Real Estate Sustainability Benchmark (GRESB) Green Bond Principles Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced 34

36 Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] In 2015, bcimc signed onto the Green Bond Principles. As a company we strive to adhere to the industryrecognized principles. Institutional Investors Group on Climate Change (IIGCC) Interfaith Center on Corporate Responsibility (ICCR) International Corporate Governance Network (ICGN) Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] bcimc has been a member since We provided a submission to the ICGN Global Stewardship Code consultation. Investor Group on Climate Change, Australia/New Zealand (IGCC) International Integrated Reporting Council (IIRC) Investor Network on Climate Risk (INCR)/CERES Local Authority Pension Fund Forum Principles for Sustainable Insurance Regional or National Social Investment Forums (e.g. UKSIF, Eurosif, ASRIA, RIAA), specify Responsible Investment Association - Canada Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] We are institutional members since Responsible Finance Principles in Inclusive Finance Shareholder Association for Research and Education (Share) 35

37 Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] bcimc was the lead sponsor for SHARE's annual BC Pension Forum. bcimc also spoke at the conference (topics: Building Sustainable Capital Markets - The Role of Investors; Active Ownership - Good Returns Through Good Employment) United Nations Environmental Program Finance Initiative (UNEP FI) United Nations Global Compact Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] bcimc encourages portfolio companies and our external managers to consider and integrate the principlebased framework into their operations and activities. Other collaborative organisation/initiative, specify Canadian Coalition for Good Governance (CCGG) Your organisation s role in the initiative during the reporting year (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] bcimc serves on the board of directors and is a member of its public policy committee as well as its environmental & social committee. Other collaborative organisation/initiative, specify Pension Investment Association of Canada (PIAC) 36

38 Your organisation s role in the initiative during the reporting year (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] bcimc serves on the board of directors and is a member of its investor stewardship committee. Other collaborative organisation/initiative, specify BOMA Canada Your organisation s role in the initiative during the reporting year (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] bcimc has been a member of its National Advisory Council since 2012 Other collaborative organisation/initiative, specify Canadian Bond Investors' Association/Association canadienne des investisseurs obligataires Your organisation s role in the initiative during the reporting year (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] bcimc was a founding member since We serve on the board of directors and as a member of its financial regulation committee SG 10 Mandatory Public Core Assessed PRI 4 SG 10.1 Indicate if your organisation promotes responsible investment, independently of collaborative initiatives. Yes 37