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Strathclyde Pension Fund

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

LAPFF has a definition of ESG and/or responsible investment and its relation to investments

Active ownership approaches

Reporting

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

other (1) description

          LAPFF has policies that help to define the Fund’s responsible investment approach.
LAPFF policies, which are based on law, regulation, codes and policies relevant to responsible investment, including all of the international law and soft law documents mentioned in this point.
        

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

As an LGPS the Fund is required to publish a Statement of Investment Principles (SIP). The Strathclyde statement contains 6 principles, one of which is Stewardship. "Stewardship - the Fund is a responsible investor and adopts policies and practices which acknowledge the importance of environmental, social and governance (ESG) issues."

The Fund retains Global Engagement Services (GES) to provide engagement with portfolio companies using the UN Global Compact Principles as a framework.

LAPFF has issued new policy guidance in 2016 and is posted on the LAPFF website at: http://www.lapfforum.org/about-us/2016_LAPFF_Policies_Full_Version.pdf

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]

The Fund uses the 6 PRI Principles as the core of it RI policy and compliance with the Principles is the Funds stated RI objective. The quarterly RI reports speak to pursuit of this compliance.

http://www.glasgow.gov.uk/councillorsandcommittees/viewSelectedDocument.asp?c=P62AFQDNDN2UNT0G81

LAPFF’s ESG policy guide is available on the LAPFF website at: http://www.lapfforum.org/Publications/latest-research/files/2016_LAPFF_Policies.pdf  


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.

URL/Attachment

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].

 

LAPFF’s full set of ESG Policies is available at - http://www.lapfforum.org/Publications/latest-research/files/2016_LAPFF_Policies.pdf


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.

The Fund encourages the fund managers it employs to have effective policies that address potential conflicts of interest in relation to stewardship. The processes for identifying, managing and recording conflicts of interest are incorporated into the Investment Management Agreements for each manager.

In respect of conflicts of interest within the Fund, the Strathclyde Pension Fund Committee and Investment Advisory Panel members are required to make any declarations of interest prior to meetings.

LAPFF has developed a tool to identify conflicts of interest among LAPFF executive members to ensure these members are complying with their local conflict of interest standards.

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios

04.1. Indicate if your organisation has a process for identifying and managing incidents that occur within portfolio companies.

04.2. Describe your process on managing incidents

          The Fund employs the services of responsible investment consultancy, GES. The GES Alert Service, provides clients with weekly news briefings on recently reported company incidents allegedly in violation of international norms on Environmental, Social and Governance (ESG) issues.
The Fund also subscribes to the GES Global Ethical Standard Service. This is a systematic screening of international companies regarding their compliance with international conventions and guidelines on environment, human rights and corruption. The GES alert service covers 100% of the major investable equity indexes including the FTSE and MSCI developed and emerging markets.
LAPFF tracks environmental, social and governance concerns with companies globally and engages with the companies of concern on behalf of its member funds. Through LAPFF, an engagement is pursued with companies of concern. If a meeting is set up, engagement objectives are set and assessed after the interaction with the company in question. If the objectives have not been met, a decision is taken as to whether to continue with the engagement and escalate the engagement or whether to continue with a standard engagement. Escalation can include collaborative engagements with other investment bodies or co-filing shareholder resolutions.
        

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