Trustee Policy on ESG - DC

ESG is important to the Trustees. They believe that integrating ESG into the Scheme’s investment strategy is an important factor in managing certain risks, and for meeting increasing member demand for ESG-related investment options.   

The Trustees, in conjunction with their Investment Adviser, consider carefully the ESG credentials of any investment managers they choose to invest in, to ensure their ESG policies are aligned with those of the Trustees. The Trustees also believe that engagement on ESG issues is important, and as such they monitor the chosen investment manager’s engagement activities on an ongoing basis. To assist with this, they have developed some engagement priorities, which are set out below:

• Climate: Climate risk and oversight, climate alignment including decarbonising and minimising emissions, climate adaption and carbon capture and removal
• Natural Capital and Biodiversity: Nature-related risk and management, circular economy, pollution and waste, sustainable food and water, deforestation
• Human Rights: Overarching approach to human rights, works and communities, customers and consumers

Within the DC section, the Trustees have made the following changes to the investment strategy over the last 2 years, to enhance the ESG profile of the Scheme:

• Introduced the BlackRock ACS World ESG Equity Tracker to the default strategy and self-select range
• Introduced the Handelsbanken Wealth and Asset Management Sustainable multi-asset funds to the self-select range

Where it is appropriate to do so, the Trustees intend to continue integrating ESG into the Scheme’s investment strategy. However, while ESG remains an important consideration for the Trustees, their primary focus continues to be delivering members valuable benefits into retirement.