Asset owner statement on climate stewardship
Providing clear expectations for asset managers on climate stewardship
In response to asset manager requests, a coalition of leading asset owners – led by The People’s Pension, Brunel Pension Partnership, and Scottish Widows – has co-authored and endorsed the Asset Owner Statement on Climate Stewardship, a new resource for the sector designed to set out clear and consistent expectations for asset managers on climate stewardship.
Raising the bar on climate stewardship
Asset managers face growing fiduciary risks from climate-related impacts and must strengthen their stewardship efforts to mitigate these risks. This statement defines clear expectations to help asset managers evolve and strengthen their climate stewardship strategies in light of the imperative need for climate action.
The Asset Owner Statement on Climate Stewardship aims to promote constructive dialogue on climate stewardship and improve efficiencies within the stewardship chain. This enables asset manager stewardship teams to fulfil their asset owner climate objectives as part of their mandates. Ultimately, the statement seeks to raise the bar on climate stewardship across the investment sector.
Key principles for climate stewardship
The statement defines 5 core principles expected of asset managers:
- Industry/market and public policy engagement should be core to the climate stewardship proposition across asset classes.
- Where permissible, asset managers should prioritise collaborative initiatives to achieve greater impact and embed efficiencies in engagement activities.
- Asset managers’ prioritisation framework for company engagement should be rooted in a robust theory of change that delivers maximum impact.
- A systematic approach to voting is imperative.
- The stewardship function needs to be appropriately resourced.
A strategic partnership that empowers effective stewardship
As owners of capital, the asset owner coalition values its asset managers as strategic partners in delivering value for members.
Created to support and empower asset managers in achieving the coalition’s climate objectives, the statement builds on existing industry guidance. It delves deeply into 5 key principles and provides a clear indication on the level of scrutiny and detail expected.
