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British Columbia Investment Management Corporation

PRI reporting framework 2019

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You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » Implementation processes

Implementation processes

FI 01. Incorporation strategies applied

Indicate (1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and (2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.
SSA
0 Screening alone
0 Thematic alone
0 Integration alone
100 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (financial)
0 Screening alone
0 Thematic alone
0 Integration alone
100 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
0 Screening alone
0 Thematic alone
0 Integration alone
100 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%

01.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

The combination of screening and integration of ESG factors is a critical component to identifying and managing the credit risk associated with our fixed income holdings. Screening from our vendors provides an initial high level overview of ESG issues with specific issuers.  As we delve deeper into potential investment opportunities integration becomes a more critical component of our process and allows us to identify further issues that are sometimes missed by the initial screening.

For mortgage holdings, we have developed a risk rating process that incorporates ESG factors as a contributor to the evaluation and pricing methodologies when identifying and managing credit risk.  This process continues to evolve as new information becomes available.  Integration of new strategies are tested and reviewed before implementation.

 

 

 

 

01.3. Additional information [Optional].


FI 02. ESG issues and issuer research

02.1. Indicate which ESG factors you systematically research as part of your analysis on issuers.

Select all that apply
SSA
Corporate (financial)
Corporate (non-financial)
Environmental data
Social data
Governance data

02.2. Indicate what format your ESG information comes in and where you typically source it

Indicate who provides this information  

specify description

          For our Mortgage investments, we require ESG data directly from our borrowers.
        

Indicate who provides this information  

Indicate who provides this information  

Indicate who provides this information  

Indicate who provides this information  

02.3. Provide a brief description of the ESG information used, highlighting any differences in sources of information across your ESG incorporation strategies.

Information from an external ESG research provider and sell-side research is combined with in-house information and analysis from our fixed income team and dedicated ESG team.  As ESG information from sell-side credit analysis is sometimes limited, our Fixed Income team will utilize information from equity reports.  A recent amalgamation of fixed income and equities under a single Public Markets group will further enhance the collaboration and sharing of information going forward. 

To conduct a carbon footprinting exercise for our fixed income portfolio, BCI has entered into a contract in 2018 with a data provider.

 

 

02.4. Additional information. [Optional]


FI 03. Processes to ensure analysis is robust

03.1. Indicate how you ensure that your ESG research process is robust:

specify description

          ESG research by external providers is regularly benchmarked for quality against other providers.
        

03.2. Describe how your ESG information or analysis is shared among your investment team.

03.3. Additional information. [Optional]

ESG is a required component of our credit research reports and is integrated into our investment decision making process. For Private Credit, the ESG analysis a required component of all investment recommendations and is a standard agenda item for all investment committee meetings.

 

 


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