The British Columbia Investment Management Corp. is enhancing its climate change strategy to successfully navigate the global transition towards net-zero emissions.
The investment organization’s priorities include that, by 2030, at least 80 per cent of its carbon-intensive investments have set mature net-zero aligned commitments or are the subject of direct or collaborative climate engagement. In a press release, the BCI also indicated its preference for engagement over divestment as an effective strategy for addressing long-term and persistent environmental, social and governance risks.
Read: BCI pushes past $200BN mark with 7.4% returns in fiscal 2022
The BCI will also seek to integrate climate considerations into every investment decision at the asset, pool and total client portfolio levels, while monitoring the total portfolio’s climate change stress test outcomes.
And as the transition to a low-carbon economy reveals new investment opportunities, the BCI said it plans to actively invest in key areas across all asset classes that will benefit from the energy transition, with the goal of supporting long-term investment outcomes.
“Climate change poses a systemic risk to the value of our clients’ portfolios and to the global economy,” said Ramy Rayes, executive vice-president of investment strategy and risk at the BCI, in the release. “BCI manages this risk by integrating climate considerations into our investment decisions. To advance our clients’ best financial interests, we will continue to adapt our climate action plan and inform our investment strategies with the latest climate science and changing market dynamics.”
Read: Institutional investors unclear on the consequences of climate change, energy transition: expert