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Shaping a more sustainable future together

Pensions have the power to help build a more sustainable future as well as growing people’s savings. Our responsible investment approach aims to benefit our pension customers, the planet and society. See how we’re putting our approach into action.

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Why we invest responsibly

The way we invest on behalf of our customers can have an important role to play in building a sustainable future worth living in. This is because the money you’re saving into your pension is likely to be predominantly invested in companies. These companies have an impact on the world around us, so by investing in them, so do we.

Our role

Our role is to deliver good investment outcomes to help our customers build their future financial security. Global challenges facing society today, like climate change, make our role even more important. So we're fully embracing responsible investment practices to allow us to manage risks and returns in a more effective way in the funds we offer to safeguard our customers' long-term savings.

What is ESG?

It’s important to understand how companies behave in relation to the planet and people, and how they manage risks and opportunities related to environmental, social and governance factors – or ESG for short. These factors are used to inform decisions about the companies we invest in.

Environmental

Environmental

Environmental issues have a measurable impact on the world we live in today and in the future. They include climate change, conserving natural resources, fossil fuel extraction, waste management and pollution. They also include activities aimed at helping nations transition to a low-carbon economy such as renewable energy production.

Social

Social

Social issues involve people – from a company’s workforce to its customers and suppliers and the people living and working near its operations. They include things like workers’ rights and equality, diversity, health and safety, working conditions, slavery and child labour. They also concern the wider impact a company may have on communities at home or overseas.

Governance

Governance

Governance relates to the rules, practices and codes of behaviour that influence how a company is run. It can have a big impact on a business’ ability to succeed and prosper. It involves people issues as well as strategic, financial and risk management issues, such as diversity on boards and executive pay; and financial reporting, anti-fraud, bribery and corruption measures, and data privacy and security.

Our approach

Our approach

We aim to prioritise investing in companies that are working hard on things like reducing their impact on the environment and improving people's wellbeing. And excluding those that are causing severe harm to the planet or society.

Our approach

Our insights & research

Our insights & research

We produce reports on key topics to help inform our responsible investment approach and carry out research to better understand customers' views and priorities on ESG matters.

Insights & research

Our policies & reporting

Our policies & reporting

Our Stewardship and Exclusions Policies and Voting Guidelines guide how we invest, how we select and engage with fund managers, and how we challenge the managers of companies we invest in to improve the way they operate.

Policies & reporting