We believe that environmental, social and governance issues can affect the financial performance of companies. We have a responsibility to take these issues seriously and where appropriate, act upon them. We have also produced a Statement of Responsible Investment Principles and the Stewardship Code.
We’ll pursue a policy of constructive engagement with companies on issues which are consistent with our fiduciary responsibilities. Our overriding obligation is to act in the best financial interests of the members of the funds. We’ll collaborate with other like-minded investors to pursue company engagement. The Local Government Pension Scheme (Scotland) Advisory Board produced guidance in a letter to Scottish Pension Funds on fiduciary duty. We also have an introductory guide to Responsible Investment Reporting and the Pensions Committee regularly receives reports at its meetings. Pensions committee papers can be found here, and Pension Sub-committee papers here.