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This page provides information on how we go about implementing our investment strategy.
As a long-term investor, we recognise the huge importance of investing in socially and environmentally beneficial assets, with a goal of protecting the investments from climate change risk, and safeguarding the financial future of the Fund. In order to protect the Fund's investments into the future, the Fund supports a global warming scenario of well below 2°C, and states an ambition to achieve net-zero carbon emissions across all investment portfolios by 2050.
We were delighted to be invited to participate in the Pension Management Institute's "Purposeful Pensions" project, highlighting the amazing work done across the pensions industry. The resulting film follows the WPF team as they visit two investments in the Fund's portfolio to show how the Fund delivers strong returns by investing in assets that deliver positive outcomes for people and the planet.
Our award-winning approach to Responsible Investment is set out in our dedicated Responsible Investment Policy, which we review and update every year:
As with everything we do, our investment approach is aligned with delivering our vision, goals and values. All are important, but of particular relevance to the investments are the following goals and values:
In order to deliver our investment approach, we value the benefits of working with other investors. We work with and/or support several partners and initiatives, as follows:
The Brunel pool - the Fund is a shareholder and client of the Brunel Pension Partnership. The Fund is able to be involved in setting portfolio specifications, approving manager selection, and monitoring ongoing performance of portfolios. Responsible investment is completely embedded and considered at each of these stages of the process. The Fund also engages through the client group, the responsible investment sub-group, and ad hoc communications from Brunel on responsible engagement initiatives, for example engagement and voting matters.
LAPFF (Local Authorities Pension Fund Forum) - The Fund is a member of the LAPFF, to enable it to act with other local authorities on corporate governance issues. LAPFF's mission is to protect the long-term investment interests of beneficiaries by promoting the highest standards of corporate governance and corporate responsibility amongst investee companies. Details of their activities can be found on the following link: http://www.lapfforum.org/about-us
TPI (Transition Pathway Initiative) - The Fund publicly supports TPI, which is a is a global, asset-owner led initiative which assesses companies' preparedness for the transition to a low carbon economy. The TPI tool assesses progress against companies and sectors to measure the level management quality and carbon performance, to aid in risk assessment. More information can be found here: https://www.transitionpathwayinitiative.org/
IIGCC (Institutional Investors Group on Climate Change) - the Fund is a member of the IIGCC. The Fund has made a public net zero commitment through the IIGCC's Paris Aligned Investment Initiative. More information can be found here: https://www.iigcc.org/ As part of its membership the Fund benefits from educational materials, webinars, and the net zero framework, which will help the Fund achieve the target of net zero by 2050.
Climate Action 100 - The Fund is a signatory of Climate Action 100. This is an investor-led initiative to ensure the world's largest corporate greenhouse gas emitters take necessary action on climate change. This initiative enables the Fund to support engagement activities which promote the target of net zero by 2050. More information is available here: https://www.climateaction100.org/
Pensions for Purpose - The Fund is a member of Pensions for Purpose, and has adopted the Impact Investing Principles for Pensions. The principles provide a useful framework for demonstrating how we look at impact investing, from setting objectives to working with consultants and investment managers, using our voice to make change, and reviewing our impact. More information is available here: Impact Investing Principles for Pensions | Pensions For Purpose. Pensions for Purpose provides a valuable resource to learn more about certain topics in the impact investing area, and a forum to interact with other investors and managers to drive progress.
JustTransition - a just transition means not transitioning to a low carbon economy at any cost, but doing so whilst also ensuring that this is done in a socially responsible way, i.e. in a way which is fair to all. The Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science have put together a comprehensive guide as to what this means for investors, and what action can be taken. The Fund has signed a statement of support, and uses the guide to help embed this goal within the Fund's policies, and help hold our investment managers to account. More information is available at the following link: https://www.lse.ac.uk/granthaminstitute/investing-in-a-just-transition-global-project/
We are a member of FAIRR, which is an investor network that raises awareness of the environmental, social and governance (ESG) risks and opportunities in the global food sector. We find the research and data provided by FAIRR very useful when we are looking into investment themes such as health and regenerative agriculture, and exploring the risks posed to our holdings in the food and agriculture sectors. You can find out more here: FAIRR Initiative | A Global Network of Investors Addressing ESG Issues in Protein Supply Chains