Responsible investment (RI) is the practice of incorporating Environmental, Social and Governance (ESG) issues into the investment decision making process and practicing investment stewardship, to better manage risk and generate sustainable, long-term returns. Financial and ESG analysis together identify broader risks leading to better informed investment decisions and can improve performance as well as risk-adjusted returns.
Investment stewardship includes active ownership, using voting rights, engaging with investee companies, influencing regulators and policy makers, and collaborating with other investors to improve long-term performance.
SYPA has for many years adopted a pro-active stance in relation to addressing ESG issues and our approach is set out in a number of different policy documents which you can find through the links on the left hand side of the page. These documents include statements which show how SYPA complies with the requirements of key standards such as the UK Stewardship Code, while others detail our approaches to specific issues.
As the process of pooling our investments through the Border to Coast Pensions Partnership progresses we are working with the 11 other funds in the partnership to a common responsible investment policy which you can find here
Voting the shares we own is an important part of a responsible investment approach and you can see our historic voting activity at the link on the left hand side of this page. More recently the Border to Coast Pensions Partnership have voted shares on behalf of all 12 of their partner funds and details of how they have voted are available here
Talking to companies in which we invest about issues of concern is another crucial activity that forms part of a responsible investment approach and we do this both through working with Border to Coast who report on this activity here and also through the Local Authority Pension Fund Forum who report on their work here Working with others in this area achieves far more than SYPA acting alone and you can find out more about how we do this here
We include a lot of information about what we have done in the area of responsible investment within our Annual Reports and Border to Coast produce a very detailed annual report which is available here
One of the biggest challenges faced by society is Climate Change and the impact of global warming. For SYPA as an investor this creates risks that some companies we invest in have a business model which is unsustainable in the long term while it also creates opportunities in terms of new things to invest in. Given the significance of these issues we have developed specific policies in this area which you can find here