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.