What is responsible investing?
Responsible investing is an approach that integrates environmental, social and governance (ESG) factors into our investing decision-making and processes. For example, we’ll consider things like climate change and human rights when we decide how and where to invest our members’ funds. We also engage with the wider investment community by joining groups and making affiliations with organisations that want to invest in a way that promotes positive ESG practices, whilst seeking the best outcomes for members.
The evolving ESG landscape
ESG factors have a definite financial impact in today’s world. Savers want a return, but also to contribute to a better society. Watch our video to see what we do to keep that goal in mind.
Our principles and framework
Responsible investment principles
We follow a set of guiding principles to make sure we’re doing what’s right for our members, employers and the wider world.
Responsible investment framework
Our Responsible Investment Framework shows how we incorporate ESG into our investment decisions and select and manage our funds.
Climate change has the potential to affect many of the sectors and companies we invest in. Our Climate Change Policy helps us to ensure that climate change risk is explicitly considered during the investment process, from understanding how exposed our portfolio is to the risks, to the way we actively engage with the wider investment community on climate change. We are also an active member of the Institutional Investors Group on Climate Change. Our Climate Change Policy can be found within the Responsible Investment Framework.
Net zero emissions by 2050
We are a member of the Paris Aligned Asset Owners Group. Alongside other major global asset owners with collective assets totalling $1.9tn, we have committed to achieving a net zero emission portfolio, helping to drive the transition to a low carbon economy by 2050. We believe that climate change represents a risk to the long-term value of our investment portfolio and has the potential to reduce the security of our members’ retirement benefits. By continuing to allocate capital to sustainable businesses, in line with our investment objectives, we reduce this risk while also supporting the expansion of climate solutions.
The path to net zero
We’ve committed to achieving a net zero emissions portfolio by 2050. Our Climate Action Plan outlines the commitments we’ve made, and our Task Force on Climate-related Financial Disclosure (TCFD) explains how we’re making it happen.
We’ve been investing responsibly since 2004, and we’re in a position where we can make a real difference to the world. Now, we’re active members in a variety of global causes and groups that make an impact through responsible investing.