ACTIVE OWNERSHIP
Delegates also heard how asset owners should have an escalation strategy if dialogue with the companies they invest in does not result in positive change.
RPMI head of sustainable ownership Deborah Gilshan said for many investors private dialogue was the only method of engagement, but the Stewardship Code actually endorses taking engagement a step further in order to make an impact.
Gilshan said: “That does not mean you speak to the press every five minutes, but sometimes you have to use the other tools in your armoury to go to the AGM, for example, to vote and raise issues.”
The Pensions Trust (TPT) responsible investment officer Jennifer Anderson said the scheme has focused heavily on climate change as a key strategic investment risk.
She said: “For us engagement on climate change does make sense. It is well aligned with the overall investment strategy and we have sought ways to engage with companies on climate change.”
UN PRI associate director, ESG engagements, Valeria Piani said the inclusion of specific requirements on responsible investment in manager appointments was only being seen among asset owners at a “very high level”.
She added: “When you look at specific requirements, especially on active ownership, there is nothing there. So when we ask questions like, ‘Are you having conversations on active ownership with your managers?’ only a very small percentage are.”
Elsewhere, ShareAction chief executive Catherine Howarth raised concern over the poor levels of stewardship awareness and promotion among the DC pension providers and insurers picking up the “huge wave of new business” following auto-enrolment.
She said: “There are a number of serious new pension providers in the UK that do not seem to be taking the active ownership agenda seriously, and that makes me worried.”
