LGPS Central engages directly with investee companies on RI issues with the objective of improving investment outcomes over the long term. We also engage through partnerships, in order to maximise the scale and effectiveness of our engagement programme. The prioritisation of engagement themes or companies depends on economic significance, resourcing and likely significance for the majority of stakeholders. Further detail of LGPS Central’s approach to engagement is provided in our reporting against the UK Stewardship Code. We expect UK companies to adhere to the UK Corporate Governance Code on a comply or explain basis and expect non­-UK companies to adhere to international corporate governance principles, whilst recognising local application and development.

LGPS Central votes all eligible shares in accordance with its agreed voting policies. For UK listed companies, we vote our shares in accordance with a set of bespoke UK Voting Principles. For other markets, we consider the recommendations and advice of our third-party proxy advisor who executes our voting decisions. This includes voting shares of portfolios managed externally where those funds are held in segregated accounts. Voting decisions will relate to engagements undertaken during the period in review and a vote might be used as an escalation step in an engagement process. WhereLGPS Central invests in externally managed pooled funds, the suitability of the manager’s voting policy is assessed during due diligence, and ongoing disclosure is required. We will seek to co­-file shareholder resolutions where beneficial to clients’ long­-term interests. LGPS Central has a procedure to recall lent stock in order to vote on significant issues.