LPPI does not currently have a standalone Engagement Policy (the development of one is a deliverable prioritised within our RI Workplan 2020).
Active ownership forms part of our core approach to responsible investment as described in our Responsible Investment Policy and specifically within our fifth Investment Belief:
As providers of capital, investors have influence. Institutional investors should utilise their ownership powers to exert influence in circumstances where their intervention is warranted to protect the long-term financial interests of beneficiaries. Responsible asset owners should maintain oversight of the way in which the enterprises they invest in are managed and how they impact upon customers, clients, employees, stakeholders, and wider society.
Additionally, LPPI has a Shareholder Voting Policy.
Voting is undertaken centrally rather than being delegated to individual managers and is informed by recommendations from an external voting provider in accordance with Sustainability Proxy Voting Guidelines which seek to reflect and integrate ESG considerations. Our proxy voting advisor takes regional context and market practices into account when making recommendations.
LPP shareholders are members (in their own right) of the Local Authority Pension Fund Forum (LAPFF) which collectively engages with companies on behalf of UK Local Government Pension Funds. Through their membership of LAPFF client holdings in listed equities (through LPPI's Global Equities Fund) are included within LAPFF's collaborative engagement initiatives.
LAPFF has a formal engagement policy and also publishes Quarterly Engagement Reports on its website.