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Environment Agency Pension Fund

PRI reporting framework 2020

You are in Strategy and Governance » Objectives and strategies

Objectives and strategies

SG 05. RI goals and objectives

05.1. Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities.

05.2. Additional information. [Optional]

In 2019 we launched our new Responsible Investment Strategy.

Responsible Investment is integrated across our fund and feeds in at all levels from officers monitoring to Board member participation in external initiatives. Numerous sources are used to inform current RI practice and issues. Officers review RI activities on a daily basis and act accordingly. Outside of this senior officers consider RI at Monthly Investment Meetings. RI is considered at each quarterly pension committee and investment sub-committee meetings. At any stage it is possible that a new objective is set in-line with the degree of sign-off needed to make the change.


SG 06. Main goals/objectives this year

06.1. List the main responsible investment objectives that your organisation set for the reporting year.

Responsible investment processes

Key performance indicator

          The pension funds are managed and their services delivered by people who have the appropriate knowledge and expertise.
        

Progress achieved

RI and ESG integration is a key part of committee training in which officers also participate.

Key performance indicator

          Committee members and officers competently represent the Fund at company AGMs.
        

Progress achieved

We asked questions at 9 AGMs with positive feedback from the companies and the PC members and officers who attended.

Key performance indicator

          Members know more about our RI approach.
        

Progress achieved

We held 2 member webinars on 'How the EAPF Invests' and had 75 attendees. We ran a series of internal communications to raise the profile of our RI approach and we surveyed our members on RI comms to see which medium works best. 

Key performance indicator

          Ask ESG questions at company AGMs.
        

Progress achieved

We asked questions at 9 AGMs with positive feedback from the companies. When audited on our approach for the Customer Service Excellence accreditation, we were awarded a merit for our work on responsible investment.

Key performance indicator

          Greater integration within pensions team.
        

Progress achieved

Internal meetings are now predominately combined and with all views considered.

          Act on climate change risk.
        

Key performance indicator

          By 2020, invest 15% of the Fund in low carbon, energy efficient and other climate mitigation opportunities.
        

Progress achieved

11% in 2019

Financial performance of investments

Key performance indicator

          Investment Strategy, designed to both robustly manage risks and take positive opportunities.
        

Progress achieved

The Fund has delivered 9.7% average annual investment returns over the last 5 years (as of March 2019).

ESG characteristics of investments

Key performance indicator

          To be invested Sustainable Enhanced Value Equity Index and in sustainable opportunities directly in private markets through our Targeted Opportunities Portfolio.
        

Progress achieved

We continue to be invested as stated above and continually look for further opportunities.

Key performance indicator

          Decarbonise the equity portfolio, reducing our exposure to ‘future emissions’ by 90% for coal and 50% for oil and gas by 2020 compared to the
        

Progress achieved

In 2019 coal was 56% less than our baseline and oil and gas 95% less.

Other activities

Key performance indicator

          To be able to evidence participation in RI initiatives.
        

Progress achieved

The fund took part in numerous RI initiatives in 2019. Many are evidenced within this document.

 

 

Key performance indicator

          Other organisations join an initiative after we promote it to them.
        

Progress achieved

After discussions with us 1 fund joined TPI and a Pool joined the BSI plastic pellets initiative.

Key performance indicator

          Published case study.
        

Progress achieved

Through the CDP non-disclosure campaign we initiated a joint case study between ourselves, CDP, a manager and the newly disclosing company.

Key performance indicator

          Documented case studies.
        

Progress achieved

Our new RI Strategy contains 5 case studies and these were promoted to our members.

06.2. Additional information.


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