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.