Responsible investment & environmental, social and governance issues
‘Responsible investment’ covers just about anything that presents a major opportunity – or a genuine threat – to members’ interests that we should identify, understand and evaluate.
The Trustee has set an investment strategy in the interests of members and consider environmental, social and governance (ESG) issues where they’re material to those interests. We allocate an appropriate amount of time to assessing these issues and to the systematic, fact-based analysis that enables us to make high-quality decisions.
For us, responsible investment means using 3 tools:
- Invest: Construct portfolios to reflect ESG factors that could positively or negatively affect investment returns.
- Exclude: Remove companies from investment portfolios that do not meet certain minimum ethical criteria. Likewise, include companies and investments that are likely to have a positive impact on the wider society.
- Engage: Work with companies in an investment portfolio about the issues that are likely to have a material impact (both positive and negative) on future returns.
For more details on our decision-making process, download our policy on responsible investment.
We’re always thinking about the future. So, later this year, we’ll be evaluating the changes that we’ve made over the past year, particularly in relation to climate change.
We’ll continually analyse all the data available to us, including the results of our responsible investment survey, to help us choose what to focus on next.