On this page you can find out more about SAUL's Responsible Investment policies and activities. We'll keep you updated with all the latest news and information.
Although the Trustee's primary responsibility is to make sure SAUL has enough money to pay the pensions promised to members now and in the future, the Trustee takes Responsible Investment issues into account across the Scheme's investments.
You can find out more in SAUL's Statement of Investment Principles. Section 9 deals with Responsible Investment.
What is Responsible Investment?
Responsible Investment seeks to incorporate Environmental, Social and Governance (ESG) factors into investment decision making.
ESG issues could affect investment returns and have an impact on the long-term performance of companies in which SAUL invests.
Examples of ESG issues are:
- Climate change and its impact on future business models
- Greenhouse gas emissions
- Pollution and waste disposal
- Working conditions
- Health and safety
- Workforce diversity
- Executive remuneration
- Board structure and diversity
- Bribery and corruption
What does SAUL invest in?
SAUL invests the contributions you and your employer pay in to the Scheme to build up a sufficient fund to pay the pensions promised to members.
A dedicated Investment Committee makes decisions about SAUL's investment strategy, taking advice from our professional investment adviser.
At the moment, SAUL invests in:
- Equities (shares in listed companies). Being a shareholder allows SAUL to vote at the Annual General Meetings of the companies in which we invest to help influence their polices for the future
- Bonds or loans to governments and companies
- Property such as offices, supermarkets and retail parks
- Infrastructure such as airports, communications and water companies.
You can find out more in the Annual Report and Financial Statements.
How does SAUL approach Responsible Investment?
The Trustee believes that ESG issues could have an impact on the performance of SAUL's investments over the long term. The Scheme's externally appointed investment managers are encouraged to consider ESG risks when investing our employer and member contributions.
SAUL takes the following approach to Responsible Investment:
- SAUL votes at all meetings of companies in which it holds shares, in line with our Corporate Governance and Shareholder Engagement Policy
- SAUL's commitment to Responsible Investment was reinforced when we signed the United Nations Principles for Responsible Investment in 2013
- SAUL has adopted the UK Stewardship Code
- Along with other influential pension funds, SAUL was a founding signatory to the Guide to Responsible Investment Reporting in Public Equity which encourages our externally-appointed investment managers to provide robust reporting on their engagement activities, implemented on behalf of the Trustee.
- SAUL has joined the Workforce Disclosure Initiative (WDI), a coalition of 79 institutional investors asking the world’s biggest companies how they treat their employees.
- SAUL has signed the new Global Investor Statement to Governments calling for action on climate change.
- We've also improved our regular meetings with our investment managers by including a dedicated ESG section in our discussions.
How does SAUL vote at shareholder meetings?
See an overview of the proxy voting activity in the year ended 31 March 2017 here.
If you have any questions about Responsible Investment at SAUL, please contact firstname.lastname@example.org