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Strathclyde Pension Fund

PRI reporting framework 2017

You are in Strategy and Governance » Objectives and strategies

Objectives and strategies

SG 05. RI goals and objectives

05.1. Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities.

05.2. Additional information. [Optional]

Officers of the Fund report on the Fund's RI progress to the Strathclyde Pension Fund Committee (trustees) on a quarterly basis. 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

The Strathclyde Pension Fund Committee approve initiatives and RI strategy matters . The most recent RI review of strategy is:

http://www.glasgow.gov.uk/councillorsandcommittees/viewSelectedDocument.asp?c=P62AFQDNT1Z3T10GUT

LAPFF has a process for regularly reviewing the responsible investment policies that guide its engagement approach and additionally reviews these objectives as required in response to engagements, legal and policy developments.

LAPFF members agree an annual work plan and discusses changes and updates to the plan quarterly.

LAPFF also has a process for regularly reviewing the responsible investment policies that guide its engagement approach and additionally reviews these objectives as required in response to engagements, legal and policy developments.


SG 06. Main goals/objectives this year

06.1. List the main responsible investment objectives that your organisation set for the reporting year.

Responsible investment processes

Key performance indicator

          Ensure full manager compliance with voting policy and to increase frequency and depth of engagement with portfolio companies. Increase frequency and depth of collaborative work
        

Progress achieved

Evidence of manager, overlay provider and officers meeting compliance with each principle and showing progress of working towards as detailed in quarterly and annual reports

Key performance indicator

          Require disclosure of ESG incorporation by managers
        

Progress achieved

Evidence reported in the Fund quarterly RI reports

Financial performance of investments

ESG characteristics of investments

Other activities

Key performance indicator

          LAPFF collaborative activity
        

Progress achieved

LAPFF sets responsible investment objectives in its work plan, which is approved annually by the LAPFF Business Meeting in January. Performance against these objectives and progress in company engagements are assessed quarterly in LAPFF's quarterly report, as well as annually

06.2. Additional information.

LAPFF sets responsible investment objectives in its work plan, which is approved annually by the LAPFF Business Meeting in April. Performance against these objectives and progress in company engagements are assessed quarterly in LAPFF’s quarterly report, as well as annually. The main objectives are presented below:

Objectives

1. To advance LAPFF’s views on IFRS with investors, regulators and companies

Key performance indicators

Media coverage, traction with regulators, politicians, and companies.

Describe the progress achieved

LAPFF continued to challenge the FRC on its position on the ‘true and fair view’ required of accounts by Company Law. The Forum wrote to the FTSE 350 advising them to disregard the FRC position, as the safe option without risk of illegality was to follow LAPFF’s Counsel position

Objectives

 2. To engage with high carbon-emitting UK companies on incorporating carbon risk management strategies into their business strategy

Key performance indicators

Successful filing of climate resilience resolutions in conjunction with the ‘Aiming for A’ investor coalition, with Anglo American, Rio Tinto and Glencore, built upon support from filing shareholder resolutions in 2015

Describe the progress achieved

Resolutions to Anglo American, Rio Tinto and Glencore were all supported by the boards, and passed with at least 96% of the vote. In conjunction with the investor coalition, LAPFF continued to engage with UK and EU-listed utilities and extractives firms on strategic resilience to climate change

Objectives

3. To engage with companies on tax transparency

Key performance indicators

Improved awareness regarding the initiative, improved transparency of corporate tax practices.

Describe the progress achieved

LAPFF asked the FTSE 100 to complete a questionnaire on tax transparency. LAPFF engaged with five companies deemed to be performing relatively well on tax transparency to understand better areas for progress and continuing obstacles.

Objectives

4. To engage with companies on human capital management and employment standards

Key performance indicators

Contributed to the development of and co-filed shareholder resolutions to improve human capital management and employment standards within companies and their supply chains

Describe the progress achieved

In one case, a company that had previously refused to speak with unions is now doing so. In another case, a shareholder resolution obtained over 50% of the votes from independent shareholders who voted. This has pushed the company to begin to act on shareholder demands.

 


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