Bedfordshire Pension Fund confirmed as successful signatory to the UK Stewardship Code

We're delighted to announce that the Financial Reporting Council (FRC) confirmed in February 2024 that Bedfordshire Pension Fund has remained a successful signatory to the UK Stewardship Code.  The Pension Fund was first confirmed as a successful signatory in February 2023.  The Code sets high stewardship standards for asset owners and asset managers, and for providers that support them.  You can see the list of signatories and find more information about the code on the FRC website.

 

What is Responsible Investment and why is it important?

Bedfordshire Pension Fund is committed to a policy of Responsible Investment.  Responsible Investment means considering environmental, social and governance (ESG) issues when making decisions about investments.  This helps the pension fund to manage risk and generate long-term investment returns.

The Pension Fund has a Stewardship Policy (PDF 149KB)

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.

 

Here are some examples of when ESG issues play a role in the pension fund’s investment decisions:

 

Environmental – thinking about a company’s approach to climate change and the Paris Agreement and also whether the company is reliant on fossil fuels and what their plans are for addressing this issue.

Social – considering whether the company pays their staff the real living wage in the UK or sets standards for staff working in their company and supply chains.

Governance – finding out how many women are on the Board of the company, whether the workforce is well-represented and what policies are in place in respect of paying bonuses to senior staff.

 

We believe these matters make a difference, and those companies with good ESG credentials are better managed companies and are more sustainable in the long-term to deliver profits. 

 

The Pension Fund Committee has agreed a set of Responsible Investment Beliefs that are considered when we make new investments and in managing our investments day to day.  Read our Responsible Investment Beliefs (PDF 155KB)

 

Bedfordshire Pension Fund works with eleven other pension funds to have a common approach through our pool company Border to Coast. You can read our Responsible Investment policy (PDF 233KB) and our Corporate Governance and Voting Guidelines (PDF 206KB) .  All the investment managers that make investments for the fund are required to follow our policy and consider Responsible Investment in every decision that they make.

 

Climate change is one of the biggest environmental issues we face.  We have taken a decision not to stop all investment in businesses associated with fossil fuels because there is strong evidence that investors, as active shareholders, can have greater influence on the transition to a low-carbon economy.

 

Talking to companies in which we invest about issues of concern is a key part of being a responsible investor.  We do this both through working with Border to Coast and also through the Local Authority Pension Fund Forum (LAPFF) who report on their work in quarterly engagement reports.  Working with others in this area achieves far more than acting alone. 

 

For many years, Bedfordshire Pension Fund has adopted a pro-active approach to lobby companies and governments more widely on climate change working through supporting LAPFF, the Institutional Investors Group on Climate Change (IIGCC) and the Carbon Disclosure Project (CDP).

 

You can find out more information about the organisations that we work with by using the links below.

 

Border to Coast Pensions Partnership

 

Local Authority Pension Fund Forum (LAPFF)

 

Institutional Investors Group on Climate Change (IIGCC)

 

Carbon Disclosure Project (CDP)