The People’s Pension launches responsible investment policy
May 2nd, 2024
The People’s Pension has released its responsible investment policy, which includes heightened expectations of its investment managers.
The master trust’s Responsible Investment policy outlines the minimum requirements and ongoing expectations that it has for its fund managers.
The new policy requires fund managers to have a commitment to net zero and adequate stewardship resourcing.
The People’s Pension said that any managers that do not meet this requirement will be placed under review, which could result in it moving its members to other managers.
Fund managers will be expected to support the People’s Pension in achieving its emissions reduction targets, including halving its GHG emission intensity by 2030 for its growth assets.
It identified climate change, nature and human rights as its three stewardship priorities going forward.
The new policy also emphasised the trust’s commitment to working with industry-wide groups such as Nature Action 100 and Climate Action 100+.
It said these groups are “the best way to collaborate with others, to improve stewardship and engagement levels on behalf of retirement savers and other investors, and most importantly, [it] expects the same commitment of its fund managers”.
The policy also set out specifically how the People’s Pension plans to use its scale and influence as one of the largest UK asset owners toward this objective and the areas that it has prioritised.
The document also includes new net zero voting guidelines, which the People’s Pension said it expects its fund managers to implement. However, as it is in pooled fund arrangements, it would be instructing its fund managers to implement the voting guidelines as part of an “expression of wish”.
The guidelines set out when to vote against company directors in fossil fuel reliant sectors on both the supply and demand side, and on deforestation.
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