Responsible investment

As one of the UK's largest Local Government Pension Schemes (LGPS), we manage assets totaling over £16 billion. These funds are carefully invested to secure the pensions of over 300,000 members.

We're required to submit an Investment Strategy Statement (ISS), which outlines our investment beliefs and processes. A key element of our approach is a strong commitment to active stewardship. The fund prioritises staying well-informed about the investments it makes, engaging with the managers of the companies in which we invests, and exercising our voting rights. The ISS also includes our views on Environmental, Social, and Governance (ESG) factors that could impact the value of our investments. This focus on material ESG considerations, combined with a dedication to active stewardship, forms the foundation of our Responsible Investment approach.

Recognizing that Responsible Investing is a dynamic and rapidly evolving field, we've adopted a set of broad, overarching principles to guide our stewardship activities. These principles will remain in place over the three-year horizon of the Investment Strategy Statement, but the fund will continuously review and adapt its approach to stewardship based on progress, industry developments, and emerging best practices.

Each year, we will publish a review of how these principles are applied in our Responsible Investment Policy Document, which will also highlight the major ESG themes considered particularly relevant.