On the go: The £34.6bn Border to Coast Pensions Partnership has published its revised responsible investment policies, which strengthen its voting approach and outline how it will engage to push for positive change from the companies in its portfolio.
After committing to achieving net zero greenhouse gas emissions across its investments by 2050 or sooner in September, the pool, which handles the assets of 11 Local Government Pension Scheme funds worth a collective £55bn, has now revised its responsible investment policy and its corporate governance and voting guidelines.
The revision clarifies and strengthens the pool’s voting position where it expects greater progress to have been made, including issues such as climate change and diversity ahead of the 2022 annual meeting season.
It also sets out four priority themes, namely the low-carbon transition, waste and water management, social inclusion and labour management, and diversity of thought, which are central to its engagement in the years ahead.
Jane Firth, head of responsible investment at Border to Coast, said: “Responsible investment and sustainability are central to Border to Coast’s ethos and a key part of delivering our partner funds’ objectives.
“Now, more than three years since our founding, it is important that we continue to evolve and update our approach to engagement.”
In line with its commitment to achieving net zero emissions across its portfolios by 2050 or sooner, and as a supporter of the investor group Climate Action 100+, the pool will now vote against the chair of the board where a company in a high-emitting sector fails the first four indicators of the Climate Action 100+ Net Zero Benchmark.
Border to Coast has also strengthened its stance on boardroom diversity and will challenge FTSE 100 companies that do not have at least one director of colour on the board, unless mitigating factors or plans to ensure this requirement is met have been disclosed.
As a member of the 30% Club investor group, Border to Coast will also engage with FTSE 350 companies where there is less than 33 per cent of female representation on the board.
This article originally appeared on MandateWire.com
