Responsible Investment & Engagement

Please note: many of the following documents are provided in PDF format. Acrobat Reader software is required in order to read them.)

The Pensions Committee recognises its role as one of promoting best practice in corporate governance which it considers to be consistent with maximising long term returns.


Investments in Russia and Belarus

Staffordshire Pension Fund estimated that less than 0.1% of its c£6.8bn investment portfolio, at 31 January 2022, was invested in Russian companies, principally through the Fund’s allocation to global equity index funds. There were no investments in companies in Belarus.

At their meeting on 1 March 2022, the Staffordshire Pensions Panel agreed that a letter would be sent to the Fund’s Investment Managers discouraging any further investments in Russia and Belarus. Since then, the Russian market has been effectively closed to foreign investors and FTSE, and many other index providers, have deleted Russian investments from their indices at zero value, which has reduced the Fund’s relatively small exposure to Russia even further. Fund Officers are discussing the options for unwinding any remaining residual exposure (estimated to be less than 0.05% of Fund assets) with the relevant Investment Managers.

LGPS Central Limited, as the Fund’s asset pool provider, have also requested managers refrain from making any further investments in Russia and Belarus and have recently issued a press release on the matter.  LGPS Central Press Release

The Fund and its Investment Managers will continue to monitor the situation during this period of uncertainty.

 


 

Climate Change Strategy

The Climate Change Strategy (CCS) sets out Staffordshire Pension Fund’s approach to managing the risks and opportunities presented by climate change. The publication of a specific CCS demonstrates the seriousness with which the Members of the Staffordshire Pensions Committee view the potential impact of climate change on the Fund.

Climate Change Strategy


Staffordshire Pension Fund Climate-related Disclosure TCFD (Taskforce on Climate-related Financial Disclosures) Report 

The TCFD recommends improved transparency by companies, asset managers, asset owners, banks, and insurance companies with respect to how climate-related risks and opportunities are being managed.

The Fund’s TCFD report describes the way in which climate-related risks are currently managed. The report also discloses the results of Carbon Risk Metrics Analysis and Climate Scenario Analysis on the Fund's Strategic Asset Allocation. The TCFD report is published annually, with updated carbon metrics.

PDF DocumentStaffordshire Pension Fund's 2022 TCFD Report (1.34MB) March 2022


 

UK Stewardship Code

The Fund was a Tier 1 signatory of the Financial Reporting Council's UK Stewardship Code 2018 (see below). The Fund is currently updating its compliance statement in line with the new requirements of the 2021 UK Stewardship code.

Staffordshire Pension Fund's Statement of Compliance with the 2018 Code is set out in the document below:

Details of the 2018 UK Stewardship Code can be downloaded and printed out:

The Pensions Committee policy on responsible investment (RI) is to endorse the United Nations (UN) principles of responsible investing and to encourage all its equity managers to sign up to the UN principles to incorporate environmental, social and governance issues into their investment process.


 

Local Authority Pension Fund Forum (LAPFF)

To underline Staffordshire Pension Fund's commitment to matters of corporate governance and socially responsible investment, in March 2013 Staffordshire Pension Fund joined LAPFF.

This is a voluntary association of 70 local government pension funds with assets under management of over £200bn (at the time of writing). The forum seeks to protect its members investments by promoting the highest standards of corporate governance and corporate social responsibility from the organisations they are invested in.

You can find more information about LAPFF on their website.


 

Investment managers

More information the Fund's equity investment manager's corporate governance and socially responsible investment reportscan be found on each of the individual investment manager's websites.  Please click the investment manager name to visit their website.

JP Morgan Asset Management

Legal and General

Longview Partners 

Aberdeen Standard Investments (previously Standard Life)

Harbourvest