Signatory to the UK Stewardship Code
We're delighted to announce the publication of our third Stewardship Report since becoming a signatory to the UK Stewardship Code.
The Code is a set of voluntary principles that aims to improve the quality of stewardship practices by asset owners, managers and service providers. To become a Signatory, organisations must clearly demonstrate that they have exercised effective stewardship over the previous 12 months through good governance and active engagement which has helped to generate long-term positive impacts for the economy, the environment, and/or society.
2024 responsible investment and stewardship report summary
This is our third responsible investment and stewardship report. It provides examples of how we're committed to helping our advisers and their client's scheme members grow their savings over the long-term and contribute to a more sustainable world.
Following interim changes announced by the FRC in August 2024 on reporting in relation to certain Stewardship Code Principles, throughout this report there are cross-references to content from our 2023 Stewardship report, which can be found here.
The full report includes detailed sections on these topics:
- Our sustainability and stewardship approach
- The ways in which scheme members' interests inform decisions
- How governance guides effective stewardship
- The integration of environmental, social and governance (ESG) factors across asset classes
- Oversight of fund managers, voting and engagement approaches, and efforts made to address systemic risks
- How we collaborate with industry bodies to advocate for change
Stewardship is our way of creating long-term value for our customers, and key to helping them live their best lives. As proud signatories to the UK Stewardship Code, I'm pleased to introduce our third annual stewardship report, showing the progress we have achieved in 2024 and endeavour to continue innovating. We've used the process of preparing this report to reflect on who we are, on the duties we owe to our customers and how those duties define our approach to the stewardship of the assets that we manage.
We believe there's a strong connection between a company's long-term performance and its approach to managing ESG risks and opportunities. The investment case for stewardship is clear. We are proud of our strong current practices and we look forward to building on our work in 2025.
2024 report highlights
Increased our allocation to funds integrating sustainability in our largest workplace default.
Exceeded our short-term target emissions reduction target and unlocking access to innovative climate solutions through private market investment.
Named leader by InfluenceMap on climate policy influence through our stewardship, including manager monitoring and direct policy lobbying.
Played a key role in influencing BlackRock's Decarbonisation Stewardship Guidelines and expanded our 'expression of wish', featured by IIGCC's Net Zero Voting Guidance.
Deepened our manager engagement, including through the Asset Owner Council and Net-Zero Asset Owner Alliance.
The value of investments may go down as well as up and isn't guaranteed. Investors may get back less than they invest.
