This report shows public data only. Is this your organisation? If so, login here to view your full report.

Church of England Pensions Board

PRI reporting framework 2017

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

A specifically Christian and Anglican approach that embaces Anglican theology, and ESG and SRI principles

01.4. Indicate what norms you have used to develop your investment policy that covers your responsible investment approach.

01.5. Describe your organisation’s investment principles, and overall investment strategy, and how they consider ESG factors and real economy impact.

The Board's investment beliefs are attached to the Statements of Investment Principles of each of its four pensions schemes. See here for one example:

https://www.churchofengland.org/media/3897124/cefps-sip.pdf

The first and leading belief is: "Ethical and responsible investment considerations are central to the Board’s work".

In managing the assets of four pension schemes, the Board has to balance its fiduciary duty to sponsors and scheme members with the ethical principles of the Church. Investment return is given the same priority as ethical considerations. However, the Board believes that companies that pay proper attention to ESG and SRI principles, and are responsive to shareholders' concerns, will generate superior returns.

The Board expects companies in which its schemes invest to demonstrate responsible employment and corporate governance practices; to be conscientious with regard to environmental performance and human rights; and to deal fairly with customers and act with sensitivity to the communities in which they operate. When appointing its investment managers, the Board takes into consideration how they incorporate analysis of companies’ performance on environmental, social and governance (“ESG”) issues into their stock selection.

 

 

 

 

01.6. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

Extract from Statement of Investment Principles:

8. Ethical and responsible investment

The Trustee recognises that the beneficiaries and the sponsors of the Scheme are part of the Church of England and that the Scheme’s investments should reflect that as far as possible without compromising its objectives. The Trustee wishes to exercise its responsibilities as an asset owner fully.

The Trustee receives advice on the ethical implication of investments from the Ethical Investment Advisory Group (“EIAG”) of the Church of England, including ethical investment policies that are developed for all Church of England investors.

The Trustee also values engagement with companies over responsible and ethical investment issues, and it considers that as a more effective means of exercising its stewardship responsibilities than disinvestment in many situations. Company engagement is carried out by the in-house Engagement Team that works jointly for the Church of England Pensions Board and the Church Commissioners.

The Engagement Team produces a list of restricted investments that reflects the ethical policies approved by the Trustee. Investment managers appointed by the Trustee are instructed to exclude these investments from their portfolios.

The Trustee expects companies in which the Scheme invests to demonstrate responsible employment and corporate governance practices; to be conscientious with regard to environmental performance and human rights; and to deal fairly with customers and act with sensitivity to the communities in which they operate. When appointing its investment managers, the Trustee takes into consideration how they incorporate analysis of companies’ performance on environmental, social and governance (“ESG”) issues into their stock selection.

The Ethical Investment Statement of the EIAG, which has been adopted by the Trustee, is adapted from time to time and can be found on the EIAG’s website.

Before an investment is made in a pooled vehicle, where the Trustee cannot directly influence the selection of individual investments, the Trustee will satisfy itself that the proportion of restricted investments (as shown on the EIAG’s restricted list) in the pooled fund is not material.

The Trustee intends that the Scheme should vote at all company meetings held by its investee companies. This is carried out by the in-house Engagement Team.


SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Indicate if your organisation’s investment principles, and overall investment strategy is publicly available

02.4. Additional information [Optional].

We have a proxy voting template that is derived from our ethical investment policies, but we do not disclose the template. We aim to vote at all company meetings for companies we own, globally.


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Extract from the Board's Code of Conduct for trustees:

 

Handling Conflicts of Interest

7.The purpose of the provisions set out at paras 9 – 16 below is to avoid any

danger of members being influenced, or appearing to be influenced, by their

private interests (or the interests of those persons or bodies they are closely

connected with) in the exercise of their duties as a member.

8. Prospective members should consider possible conflicts of interest before they

are appointed or stand for election. All members should advise of actual or

potential conflicts of interest as soon as they become aware of them.

 

Registration of Interests

9. All members should register in the Central Register of Members’ Interests any

personal interest which might influence their judgement or which could be

perceived (by a reasonable member of the public) to do so.

10. In particular, members should register –

• relevant personal direct or indirect pecuniary interests;

“pecuniary” interests including shareholdings or other financial interests (including

remunerated directorships) in commercial organisations with which the Pensions

Board has, or may reasonably be expected to have, a financial relationship.

 

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


Top