The Trustee of TPT’s pension schemes, Verity Trustee Ltd, delegates responsibility for setting the investment strategy to a Funding Committee (FC) and Investment Committee (IC). The FC determines the appropriate proportion of funds to be held in growth and liability assets whilst the IC agrees the composition and performance of the growth portfolio. The CIO and Investment Team are responsible for implementing the investment strategy with day-to-day investment decisions made and by external fund managers.
The guidelines which govern these delegations are set out in The Trustee’s Statement of Investment Principles. Within the Statement of Investment Principles, TPT also sets out its intention to act as a ‘responsible’ asset owner and market participant across all markets and asset classes and in particular it refers to the Climate Change Policy as a strategic part of its approach. The Trustee has also agreed a set of ten Investment Beliefs that reflect its long-term investment philosophy.
TPT’s Trustee Board delegates responsibility for implementation of its Responsible Investment policy to the Investment Committee. The IC provides an update on the implementation of its the Responsible Investment & Climate Change policy on a quarterly basis through its reporting requirements, which incorporate a climate related pillar.
In 2016, the IC undertook a formal review of the potential financial impact of climate change on its investments, using Mercer’s proprietary multi-asset climate change scenario tool.
NB: TPT’s Responsible Investment and Climate Change policy is updated and reviewed by the Board of Trustees on an annual basis, most recently in November 2018.