What are the issues?
We all want to do our bit to address the big issues facing society – and it might surprise you to learn that your pension has a part to play. The money that will be used to fund your retirement is being invested, and those investments can be a force for good, tackling things like climate change, working conditions and corporate governance.
We appoint fund managers to look after your investments. Your fund managers look at three factors when deciding how sustainable a fund is. Together, they’re known as ESG:
Environmental: The impact the fund has on the environment, whether it invests in oil deposits or gas mining, whether it supports companies that dispose of waste sustainably and use renewable fuel sources.
Social: The impact the fund has on people, whether companies treat their workforces properly, whether they employ a diverse workforce, if they pay their workers a fair wage.
Governance: The way companies the fund invests in are governed, whether executives are held accountable, whether trading is legal and free from corruption.
What have we done about it?
In the last year, the Trustees have given time and attention to ESG issues to make sure that our investments are in line with the policy set out in our Statement of Investment Principles (SIP). A SIP outlines how the Trustee invests the Scheme’s money. We also produce an Implementation Statement that sets out how we’ve put those principles into practice.
By investing your savings in companies, your fund managers have the right to vote as shareholders, and over the last year have used those rights to vote for decisions that will address climate change, diversity and inclusion, and corporate board independence.
