Responsible investing

We’re committed to being a sustainable and responsible pension provider, investing in ways that benefit the environment and our society.

We believe that getting positive investment outcomes, and investing for a better world, go together.

Investing for good

We’ve long believed that, as a pension provider with a strong focus on social responsibility, we should be investing for good, as well as growing your savings. As a responsible investor, we manage investment risk with the aim of achieving consistent long-term growth – which is in your best interests.

Part of our approach to responsible investing is making investment decisions based on environmental, social and governance (ESG) factors, without impacting the growth of your pension savings.

We’ve been investing in green bonds, which focus on funding environmental and climate-positive projects such as railways and wind farms, since 2017.

As a result of our 2020 investment review, we’re committed to increasing our investment in companies which achieve good standards on:

  • environmental factors such as carbon emissions and water management
  • social factors such as employee and local community relations, and
  • governance factors such as board diversity and remuneration.

Over half the money in our Scheme will be invested in line with ESG principles by the end of 2021.

Find out more about our approach to RI in our Statement of Investment Principles (SIP).

Responsible investment objectives

We have very specific and measurable goals underpinning our responsible investment policy, including achieving ‘net zero’* carbon emissions by 2050. This is in line with the Paris Climate Agreement which seeks to limit global warming to below 2° Celsius, and preferably to 1.5°, compared to pre-industrial levels.

We expect this area will continue to evolve as governments develop new policies and we’ll continue to review our investment strategy to find more opportunities for investing responsibly.

*Net zero refers to achieving a balance between the amount of greenhouse gas emissions produced and the amount removed from the atmosphere.

More about the Paris Climate Agreement

Cutting our carbon footprint

Our pension investment strategy is only one part of our overall aim to reduce our carbon footprint. We’re also constantly looking for ways to minimise the impact our business has on the environment. This includes reducing business travel, promoting more environmentally friendly ways of working, including working from home, and choosing greener infrastructure, office space and equipment.