The Trustee believes that environmental, social, economic and governance performance are fundamental to a company’s success and thereby its long-term financial returns. The Trustee also believes that the goal of any company should be to produce sustainable long-term financial value, which will be helped by having long term owners to whom the company is accountable and by having owners who are clear about their expectations.
The Trustee wishes to invest in companies which embrace these objectives and are able to demonstrate that they do so.
The Trustee has adopted the UN Global Compact Principles as its Responsible Ownership framework for the SCPF and has also signed up to the UN Principles for Responsible Investment (UNPRI) as an investment management framework for giving consideration to environmental, social and corporate governance issues.
The Trustee reflects ESG considerations, including financial risk from climate change, in a manner which is consistent with the Trustee’s investment objectives, legal duties and other relevant commitments. Where the Trustee believes it is appropriate, this includes embedding certain ESG factors or considerations into the relevant investment benchmark. As a responsible steward of capital, the Trustee maintains a Responsible Ownership policy. The policy also sets out where the Trustee has employed a third-party organisation to assist in the implementation of this policy regarding engagement activity, exercise of voting rights and ongoing monitoring responsibilities. The Trustee has adopted the UN Global Compact Principles and signed up to the Principles for Responsible Investment. The Trustee requires the Investment Manager to:
- Include consideration of ESG factors in the investment process, where relevant to the financial risk and return;
- Use its influence to engage with underlying managers to ensure the SCPF's assets are not exposed to undue risk; and
- Report to the Trustee (including through the 3rd Party Stewardship Services Provider) on its ESG activities, which supports the Trustee in determining the extent to which the SCPF's engagement policy has been followed throughout the year.
To read more on how the Trustee integrates ESG into its investment objectives please read the Statement of Investment Principles.
Voting and Engagement
The Trustee has appointed Hermes Equity Ownership Services Limited, (“Hermes”) to assist in the implementation of its Responsible investment policy by providing voting and engagement services.
To read more about what Hermes does for the Trustee please read the Responsible Investment Policy