Our responsible investment approach
We're a purpose-driven modern mutual, committed to acting and investing responsibly.
Our key focus areas
Engagement
We believe in engaging with the companies we invest in to support them in improving their corporate behaviour and to encourage positive change.
Voting
We use our voting rights on a range of issues, including corporate governance, climate change, board appointments, changes to a company's structure, pay and compensation, and mergers and acquisitions.
ESG integration
We expect all our asset managers who manage your clients' investments to consider environmental, social and governance (ESG) factors - both risks and opportunities - in their investment decision-making process.
Collaboration
We collaborate with policymakers, the companies we invest in, industry groups and other stakeholders on key issues such as climate change to support meaningful regulatory and industry change.
Responsible investment and our asset managers
Deciding not only how we should invest - our investment beliefs - but also who we should work with helps make sure that we're in the best position to put those beliefs into practice.
So we look to pick and work with the asset managers who we believe are best aligned with our principles:
- Responsible selection - Before we appoint an asset manager, we carry out a responsible investment assessment to make sure they meet the standards we have in place.
- Appointment - We make sure asset managers are clear about our responsible investment principles. And any new asset managers we're considering working with must be signatories to the UK 2020 Stewardship Code, the UN Principles for Responsible Investment and the Net Zero Asset Managers Initiative.
- Monitoring and reporting - We ask asset managers to provide regular reports on their progress. We also have meetings with our key asset managers twice a year.
What this means for your clients
Ultimately, responsible investment isn't about choosing values over value. It's about integrating both to help deliver sustainable long-term investment returns. Remember though that the value of investments can go down as well as up and your clients may not get back all of their original investment.