April 26, 2012
One of UK’s largest asset owners, Strathclyde Pension Fund, has appointed GES to engage with both its investee companies and its investment managers, thereby adding leverage to its Responsible Investment strategy.
The £10bn Strathclyde Pension Fund takes engagement on environmental, social and governance (ESG) issues to a new level by hiring GES for not only company engagement but also investment manager engagement. This means that GES will work with the Fund’s investment managers to ensure minimal impact on the investment process and to co-ordinate engagement strategies. GES will also provide engagement profile reports to the Fund detailing investment manager engagement performance and recommendations for improvement.
“GES engagement solutions will facilitate a step change in the effectiveness of our Responsible Investment policy and support our commitment to PRI. The collaboration between GES and the Fund’s investment managers and other institutional investors promises a long-term commitment to engagement and to secure sustainable value through addressing areas such as the environment, climate change, labour standards and human rights,” said Richard Keery, Investment Manager at Strathclyde Pension Fund.
“This two-way engagement offers a cost-effective solution to a common dilemma among asset owners that do not have the resources and/or influence to engage with companies themselves. Pooling the investment together with other investors via a third-party engagement overlay enhances their impact as shareholders and it is also in line with their fiduciary duty according to the UK Stewardship Code,” said Fredric Nyström, Engagement Coordinator and Key Account Manager at GES.
Strathclyde Pension Fund is one of the largest local authority pension funds in the UK and ranks among the top 20 in the list of all UK pension funds.
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