The Trustee believes Environmental, Social and Governance (ESG) factors can have an impact on the performance of its investments and the consideration of ESG factors can enhance the risk and return profile of its investments. The Trustee therefore expects its investment managers, when exercising discretion in the mandates that they manage for the scheme, to integrate all relevant and material financial factors, including ESG considerations, into the investment decision making process.
The Trustee considers how potential new investment managers incorporate ESG factors into their investment process before selecting a manager. As part of its regular monitoring process the Trustee requests that managers demonstrate their approach to incorporating ESG factors when exercising discretion in the mandates they manage for the Scheme.
In order to act in the best financial interests of members the Trustee believes it must act as a responsible asset owner. The Trustee has delegated the exercising of voting and engagement rights to its investment managers. The Trustee expects its investment managers to exercise voting and engagement rights so as to protect and enhance the value of the Scheme’s investments. The Trustee monitors the actions taken by the investment managers on a regular basis.