Investing in the future
Our responsibility is to protect and enhance the value of our investments over the long-term, with the ultimate aim of providing sustainable income for our members in retirement. The application of our Environmental, Social and Governance (ESG) beliefs in investment decisions are a part of this.
Our ESG beliefs
We believe, as stewards of the assets entrusted to us, that excellence in investment governance enables us to add value to our member retirement outcomes. We aim for best practice stewardship and active ownership.
2. Climate change
We believe that climate change is a systemic issue and presents financial risks and opportunities for investors. As such, the Trustee needs to manage implications for the Fund on behalf of our members.
3. Engagement and exclusion
We believe that ESG ‘engagement’ in order to change behaviour can enhance risk-adjusted returns over the long term. However, ‘exclusion’ of investments can be an appropriate tool in particular circumstances.
What does this mean?
ESG is an important part of fundamental stock research, and a significant amount of a company’s value comes from intangible drivers, such as corporate culture, corporate strategy, management quality, and other factors such as relationships with suppliers and customers. We can make better informed investment decisions through analysis of how companies manage financial and non-financial risks. Robust risk management contributes to a company’s earnings sustainability. This assessment is particularly important through due diligence prior to investment in a company or allocation to a fund manager