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British Columbia Investment Management Corporation

PRI reporting framework 2019

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You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes

Implementation processes

LEI 01. Percentage of each incorporation strategy

01.1. Indicate (1) which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities and (2) the breakdown of your actively managed listed equities by strategy or combination of strategies (+/- 5%)

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied
55 %
Percentage of active listed equity to which the strategy is applied
30 %
Percentage of active listed equity to which the strategy is applied
15 %
Total actively managed listed equities 100%

01.2. Describe your organisation’s approach to incorporation and the reasons for choosing the particular ESG incorporation strategy/strategies.

Our approach to incorporation is guided by the particular mandate. Our Canadian active mandates rely on our ESG Integration team developing a company ESG score based on sector level tear sheets with a focused set of performance indicators that are deemed most material. For the thematic mandate, which centres around particular themes with ESG factors layered into the stock selection process, our ESG Integration team provides a mix of more detailed company-specific analyses, as well as broader ESG information to the portfolio managers. To enable our support of our active mandates, we use a combination of external and internal research.

 

01.3. If assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]

In terms of screening, our entire portfolio (active, passive, internally or externally managed) is screened for cluster munitions and landmines. As a result, the active mandates have a combination of company specific ESG analysis coupled with the portfolio wide screens.


LEI 02. Type of ESG information used in investment decision

02.1. Indicate what ESG information you use in your ESG incorporation strategies and who provides this information.

Type of ESG information

Indicate who provides this information  

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

02.2. Indicate if you incentivise brokers to provide ESG research.

02.3. Describe how you incentivise brokers.

We provide feedback to brokers on their ESG research to demonstrate our interest in and demand for quality ESG research. We currently provide this feedback on an ad-hoc basis.

02.4. Additional information.[Optional]


LEI 03. Information from engagement and/or voting used in investment decision-making

03.1. Indicate if your organisation has a process through which information derived from ESG engagement and/or (proxy) voting activities is made available for use in investment decision-making.

03.2. Additional information. [Optional]

BCI professionals with a mandate to engage with public companies are situated in the Public Markets Department along with portfolio managers. This allows for the exchange of information on engagement and voting in an informal manner and sometimes PMs will join an engagement as well.

ESG information provided to investment managers includes engagement and voting history.

We publicly disclose all of our proxy voting decisions. We also provide vote rationales for all shareholder proposals and when we vote against management. This information is disclosed soon after it is voted, and ahead of a company’s annual general meeting. The searchable database, available on our website, provides an account of our voting history back to 2013.


(A) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by

Description

We have negative screens in place for cluster munitions and landmines across all asset classes.

04.2. Describe how you notify clients and/or beneficiaries when changes are made to your screening criteria.

We would communicate changes during client meetings.


LEI 05. Processes to ensure screening is based on robust analysis

05.1. Indicate which processes your organisation uses to ensure screening is based on robust analysis.

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]


LEI 06. Processes to ensure fund criteria are not breached

06.1. Indicate which processes your organisation uses to ensure fund criteria are not breached.

06.2. If breaches of fund screening criteria are identified - describe the process followed to correct those breaches.

The compliance department would alert the public markets department of the error and determine the source of the error to prevent recurrance.

06.3. Additional information.[Optional]


(B) Implementation: Thematic

LEI 07. Types of sustainability thematic funds/mandates

07.1. Indicate the type of sustainability thematic funds or mandates your organisation manages.

07.2. Describe your organisation’s processes relating to sustainability themed funds. [Optional]

We offer clients products such as the actively-managed Thematic Public Equity Fund, which invests in long-term, strategic themes such as Energy Efficiency.


(C) Implementation: Integration of ESG factors

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate the ESG factors you systematically research as part of your investment analysis and the proportion of actively managed listed equity portfolios that is impacted by this analysis.

ESG issues

Proportion impacted by analysis
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]


LEI 09. Processes to ensure integration is based on robust analysis

09.1. Indicate which processes your organisation uses to ensure ESG integration is based on a robust analysis.

09.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your integration strategy.

09.3. Indicate how frequently third party ESG ratings that inform your ESG integration strategy are updated.

09.4. Indicate how frequently you review internal research that builds your ESG integration strategy.

09.5. Describe how ESG information is held and used by your portfolio managers.

09.6. Additional information.[Optional]


LEI 10. Aspects of analysis ESG information is integrated into

New selection options have been added to this indicator. Please review your prefilled responses carefully.

10.1. Indicate which aspects of investment analysis you integrate material ESG information into.

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

10.2. Indicate which methods are part of your process to integrate ESG information into fair value/fundamental analysis and/or portfolio construction.

          The investment score includes a weighting based on an ESG score.
        

10.4. Describe the methods you have used to adjust the income forecast / valuation tool

The ESG score impacts the fundamental analysis and not the income forecast/valuation tool.

10.6. Additional information. [OPTIONAL]


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