As an active and responsible investor North East Scotland Pension Fund believes that engagement is a major factor which should, where relevant, be taken into account when managing the Fund's assets. The concept of Long Term Responsible Investment (LTRI) and consideration of Environmental, Social and Governance (ESG) issues in our investment are fundamental to the Fund.
Our Fund does not have the resources to engage with companies in-house, we conduct all our engagement through collaborative engagement networks. We are active members of the Local Authority Pension Fund Forum which has more than 20 years of experience engaging with companies on matters of corporate governance and corporate social responsibility.
We attend all business meetings and annual conference. LAPFF’s engagement approach is based on the following core principles:
• Company engagement is conducted on the basis of reputational; risk and long-term value for shareholders. The Forum does not generally take an ethical stance on issues
• Engagement should seek to improve the performance of laggard companies while also striving to acknowledge and encourage companies that are leaders.
•The Forum seeks to understand the company perspective on controversial issues before suggesting opportunities to improve governance or corporate responsibility practices
• All engagement meeting notes and company correspondence are kept strictly confidential in order to protect the company’s reputation and allow for open and honest dialogue.
• In the interest of transparency and stewardship, the Forum reports on its engagement activities quarterly. Quarterly reporting is general in nature and does not reveal confidential information. Our Fund has also signed up to various UNPRI initiatives, Global Investor Statement on Climate Change, Global Investor Statement on the Arms Trade and are a member of the Sustainable Stock Exchanges Investor Working Group.