Responsible Investment & Stewardship and TCFD reports published

Border to Coast Pensions Partnership (“Border to Coast”), one of the largest public sector pension pools in the UK, has published its Responsible Investment and Stewardship Report and TCFD Report for 2020/21.

The reports outline how Border to Coast is delivering on its commitment to fully integrate Responsible Investment and effective Stewardship as it makes a difference for its eleven Local Government Partner Funds.  This includes achieving A and A+ scores in its first year as a signatory to the UN-supported Principles for Responsible Investment (PRI), and its work with Albourne Partners to raise environmental, social and governance (ESG) standards in private markets.  Reflecting the importance of managing climate change risks, they also highlight that all Border to Coast investment funds are materially below their respective benchmarks for carbon intensity – some by more than 50%.

The Responsible Investment and Stewardship (“RI”) Report provides a detailed view into Border to Coast’s approach to its role as an effective steward of its customers’ capital and to the management of the investment risks and opportunities associated with ESG factors.  During the reporting year, Border to Coast held 1,250 engagement meetings with companies, voted on more than 12,000 resolutions at over 900 shareholder meetings, and participated in 10 collaborative initiatives.

Rachel Elwell, CEO at Border to Coast, said: “We were established with the belief that responsible investment, including effective stewardship and transparent disclosure, is fundamental to our collective success and this remains core to what we do and how we operate.

“Despite our relative youth, with the support of our Partner Funds through our collective size and with effective engagement, we are already driving standards in ESG reporting and, as a long-term investor, we are making a difference in how companies act – and this will only increase in the years to come.”

The TCFD Report for 2020/21 illustrates Border to Coast’s approach to managing climate-related risks and opportunities in line with the TCFD recommendations within the four thematic areas of governance, strategy, risk management and metrics and targets.

The Report notes that Border to Coast’s exposure to climate change comes predominantly from the investment funds that it manages on behalf of it Partner Funds and is, therefore, primarily focused on the climate risk associated with its investment funds.

In this reporting period, there have been decreases in all carbon metrics both in absolute terms and relative to the benchmarks in all the funds reported by Border to Coast.