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Strathclyde Pension Fund

PRI reporting framework 2017

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Overview

LEA 17. Voting policy & approach

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

17.1. Indicate whether your organisation has a formal voting policy.

17.2. Indicate what your voting policy covers:

17.3. Attach or provide a URL to your voting policy. [Optional]

URL

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17.4. Provide a brief overview of your organization’s approach to (proxy) voting.

While the Fund relies on its external managers to execute the vast majority of proxy voting since its meeting in March 2016 the Strathclyde Pension Fund committee agreed that on issues which have been identified by LAPFF (the Local Authority Pension Fund Forum), GES (Global Engagement Services), or officer engagement as being of particular concern, the Fund should be prepared to vote portfolio holdings directly to support its engagement strategy.

In quarter 2, in support of the ‘Aiming for A’ coalition and shareholder resolutions calling on Rio Tinto and Exxon to publish annual assessments of long term portfolio impacts of public climate change policies and asking Exxon to assess the impact on the company’s oil and gas reserves and resources under a two-degree scenario and the resilience of the Company’s portfolio of reserves and resources through 2040 and beyond, officers of the Fund voted the Fund’s holdings in support of the resolutions.

 

17.5. Provide an overview of how you ensure your voting policy is adhered to, giving details of your approach when exceptions to the policy are made (if applicable).

Historically SPF's Responsible Investment policy has been firmly focused on its investment managers, this includes proxy voting and the filing and/or co-filing of shareholder resolutions. The rationale for this approach has been that: it is consistent with the Fund's policy of outsourcing the day-to-day investment function; investment managers are best placed to engage with the companies which they have researched and invested in; and consideration of ethical, social and environmental issues should be an integral part of the managers' investment processes. The Fund's voting policy requires each investment manager to vote all possible holdings and to produce quarterly voting statistics. The Fund monitors this in detail.

The Fund also recalls stock on loan to facilitate voting should the manager or officers require, this happens several time a year. Voting takes priority over stock lending.

LAPFF members sometimes choose to draft and co-file shareholder resolutions, either among themselves or in coalition with other investors. During 2015, some LAPFF members co-filed a shareholder resolution with National Express in relation to labour rights. LAPFF also worked with the Aiming for A initiative to co-file resolutions on strategic climate resilience with Shell and BP.

In addition, we receive periodic voting alerts for companies where LAPFF has identified serious ESG concerns and where attempts to engage with the company have been unsuccessful.

 


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