Transport for London Pension Fund: recommendations
RI policy, implementation and monitoring
From the information available to FairPensions it appears that the Fund has a basic commitment to RI, however it is not clear whether careful attention is being paid to the implementation and monitoring of a detailed policy. If this is not the case, we recommend that steps are taken which should include:
- Specific requirement for active engagement with investee companies on ESG issues.
- Identifying specific ESG risks and opportunities for incorporation into research and investment decisions.
- Establishing clear measures to ensure fund managers' performance on ESG issues is carefully monitored and regularly assessed.
- Incorporating assessment of the capacity of fund mangers to carry out the Scheme's RI policy into its fund manger selection process, and into its investment management agreements
- Expansion of RI policy across non-equity asset classes
- The use of internal and/or external dedicated resources to undertake ESG engagement on behalf of the scheme.
- Consideration of membership of the UN PRI, both for itself and as a screen re fund manager selection.
Transparency
Given the fundamental importance of transparency to responsible investment, we would recommend significantly expanding the depth of detail publicly disclosed via its website, including:
- Detailed statements of RI policy, policy implementation and performance monitoring
- Full voting records and summary voting analysis
- Detailed ESG engagement initiatives and outcomes
- A detailed section on responsible investment in the Scheme's annual report.
Download Transport For London Pension Fund's full scoresheet
If you are a member of this pension scheme, why not email your pension scheme to ask whether they have implemented all or any of these recommendations.
