bcimc s Approach to Climate Change Jennifer Coulson Manager, Shareholder Engagement

Transcription

1 bcimc s Approach to Climate Change Jennifer Coulson Manager, Shareholder Engagement

2 Outline Overall Responsible Investment Approach & Where Climate Change Fits Climate Change Research Climate Change Engagement Activity Climate Change Public Policy Activity 2

3 Responsible Investing is a Pillar in bcimc s Strategic Plan We will be the responsible fund manager of choice for the British Columbia public sector. Investment Returns Risk Management Responsible Investing Client Servicing Building bcimc We are accountable to our clients to provide professional fund management while recognizing our responsibility to the broader society through our governance, social and environmental related activities. 3

4 History of Responsible Investing at bcimc Expanding bcimc s Investment Responsibility Becoming Part of bcimc s Daily Activities A Focus on Policies & Frameworks Recognizing a Strategic Priority Proxy Voting Energy Cost Saving Measures Responsible Building Design A Corporate Governance Focus LOW IMPACT THE EVOLUTION OF bcimc s RESPONSIBLE INVESTING ACTIVITIES HIGHER IMPACT 4

5 What is Responsible Investing? Considering environmental, social and governance (ESG) issues in our investment decisions and processes. Climate change Governance/Ethics Environment Social/Reputation 5

6 Climate Change as a Priority climate change identified as a strategic priority due to its far reaching impact that is likely to disrupt markets, economies, ecosystems and cultures it is a systemic source of risk to the value of our portfolio and the capital markets as a whole so as a fiduciary, this risk cannot be ignored this focus has led to a series of practices centered around engagement with companies; funding research; and contributing to the public policy debate 6

7 Engagement investors need comparable data before integration can occur for bcimc this means emphasizing disclosure by companies ideally via the Carbon Disclosure Project (CDP) we have supported CDP since 2006 which currently represents 655 institutional investors with US$78 trillion in AUM CDP surveys companies on approaches to climate change including strategies, emissions levels, targets and governance structure results of this survey are used to both engage non-responding companies and ask specific questions of those that do respond 7

8 Funding Research one of the key themes around climate change is uncertainty so specific research on the investment implications is warranted on a global scale bcimc has an ongoing commitment to providing funding to the publication of the CDP Canada Report for specific data and analysis on our Canadian portfolio we also partnered with other global investors to have Mercer look at implications from a strategic asset allocation perspective starting in 2010 in February 2011, Mercer released their results Climate Change Scenarios: Implications for Strategic Asset Allocation this study was followed by conversations with the participating investors and findings were published in Through the Looking Glass in early

9 Public Policy Debate public policy uncertainty globally, but specifically in Canada, is an ongoing frustration currently little incentive for companies to aggressively address climate change bcimc has on more than one occasion asked the federal government to both enact an absolute target reduction for GHGs in line with the IPCC and establish a price for carbon signed on to international statements of support to global leaders prior to international negotiations 9

10 Concluding Remarks great deal of uncertainty remains but we do know that climate change will have significant investment implications it is possible to take a proactive approach as investors there is a particular need for the investor voice in the public policy debate need to find ways to elevate this conversation within the investment industry Jennifer.coulson@bcimc.com 10