Responsible investment

Our Responsible Investment and Stewardship Framework

We’ve introduced our Six Principles of Responsible Investment to guide our decisions on asset allocation, manager selection, fund research and engagement activity.

As environmental, social and governance (ESG) risks and opportunities become better researched and understood, it’s clear that these factors can have a financial impact on investment portfolios. So where we believe ESG factors pose downside risks to investments, or offer potential upside opportunities, we will incorporate them into our decision-making.

Our principles define how we will do this to help secure our customers’ long-term financial futures.

They are underpinned by our Stewardship Commitments to:

  • be responsible stewards of the assets we oversee
  • influence investee companies to engender positive change
  • exercise strong governance over the fund managers we partner with.

Our support for you

To help you understand more about our responsible investment approach we’ve developed useful material.

Read our Responsible Investment and Stewardship Framework.
Read our Stewardship Policy.

 

Responsible investment Q&A

In this short Q&A, Head of Pension Investments Maria Nazarova-Doyle outlines our approach to responsible investment.

Integrating ESG considerations into our Pension Portfolio Funds

We’re taking our next step towards integrating ESG considerations into our Pension Portfolio Funds by supporting the transition to a low-carbon economy.

We’ll achieve this by investing a portion of the equities allocation in our Pension Portfolio Funds, which underpin our Pension Investment Approaches (PIAs), to the new BlackRock ACS Climate Transition World Equity Fund.

We’ve collaborated with BlackRock on the design of the fund and it delivers on the ESG investment themes that most resonate with pension savers according to research we carried out among 18-60 year olds.

Through this fund, we’ll be focusing on companies that decrease carbon emissions, increase clean technology revenue, reduce water consumption and improve waste management. These businesses are likely to better manage the risks and opportunities of climate change, improving environmental outcomes.

Integrating ESG Considerations into our Pension Portfolios
ESG – what resonates with pension investors

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