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TPT Retirement Solutions

PRI reporting framework 2019

You are in Strategy and Governance » Governance and human resources

Governance and human resources

SG 07. RI roles and responsibilities

07.1. Indicate the internal and/or external roles used by your organisation, and indicate for each whether they have oversight and/or implementation responsibilities for responsible investment.

Roles

Select from the below internal roles

07.2. For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities.

The Board of Trustees approves the Responsible Investment policy and related documents, on the recommendation of the Investment Committee. The Investment Committee monitors the implementation of the policy with day to day implementation of the policy is undertaken by the CIO and the Invesment Management Team.

Progress with implementation is monitored on a periodic basis through the Invesment dashboards and regular reporting back to the IC.

07.3. Indicate the number of dedicated responsible investment staff your organisation has.

1 Number

07.4. Additional information. [Optional]

Although TPT has 1 member of staff who is ultimately responsible for RI issues, these duties are integrated into the way we design and implement investment strategy and as such everyone involved in these activities has a responsibility to consider these factors.

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SG 07 CC. Climate-issues roles and responsibilities

07.5 CC. Indicate the roles in the organisation that have oversight, accountability and/or management responsibilities for climate-related issues.

Board members or trustees

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Risk Officer (CRO), Investment Committee

Portfolio managers

Investment analysts

External managers or service providers

07.6 CC. For board level roles for which have climate-related issues oversight/accountability or implementation responsibilities, indicate how these responsibilities are executed.

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.

07.7 CC. For the management-level roles that assess and manage climate-related issues, provide further information on the structure and process involved.

The CIO and Investment team are responsible for implementing the investment strategy, with the day-to-day investment management activities out-sourced to third-party fund managers. 

The CIO and IC are assisted in forming capital market and other investment views (including portfolio composition, manager selection and monitoring of investment managers) by TPT's Portfolio Construction Group. The focus of the group includes amongst many other things, climate related risks and opportunities as they relate to TPT's investments. 

In terms of ensuring its managers are aligned with TPT's policy on climate change, TPT's expectations on ESG and climate risk are incorporated in the Investment Management Agreements (IMAs) that we put in place with new managers. The PCG and IC monitor the on-going performance of our managers through TPT's Responsible Investment Manager Ratings system. The manager ratings are updated and shared with the IC and Senior Management Team (SMT) on a quarterly basis.  

07.8 CC. Explain how the organisation engages external investment managers on the TCFD recommendations and its implementation.


SG 08. RI in performance management, reward and/or personal development

08.1. Indicate if your organisation’s performance management, reward and/or personal development processes have a responsible investment element.

Board members/Board of trustees

08.1b. RI in personal development and/or training plan

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Operating Officer (COO), Investment Committee

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Portfolio managers

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Investment analysts

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

08.3. Provide any additional information on your organisation’s performance management, reward and/or personal development processes in relation to responsible investment.

08.4. Describe the level of experience board members/trustees/chief-level staff have with incorporating ESG factors into investment decision-making processes.

          TPT first began considering ESG issues in 2012, and has since made great strides in incorporating this into the decision making process. This knowledge is now shared amongst the business and so is well understood.
        

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