On the go: The Church of England Pensions Board has published its first annual stewardship report, setting out its future priorities, which focus on climate change and extractive industries.
The report, which is in line with the new UK stewardship code, sets out the board’s key achievements during 2020.
This included the successful launch of the FTSE-TPI Climate Transition Index, which has led the board to sell its holdings in Exxon and Chevron. By the end of 2020, the board had invested around £800m through the index.
With roughly £3bn under administration, the Church of England continues to monitor the carbon footprint of its investments, and the portfolio’s weighted average carbon intensity is now 42.3 per cent under the relevant benchmark.
During the year, the board also engaged with 630 companies on climate change, indigenous community rights, mining safety, diversity and executive pay, among other issues.
As part of a community of responsible investors, the Church of England co-led the European initiative to create the first Net Zero Investment Framework and continues to lead the Transition Pathway Initiative with the Environment Agency Pension Fund.
Looking ahead, the board will build upon the launch of the Net Zero Investment Framework to seek global endorsement of it.
The Church of England plans to develop a 2030 vision for a reformed mining sector to address systemic challenges. It will work with global investors to develop the vision with input from companies and communities.
The board also plans to develop an ethical investment policy on the big tech sector with the other national investing bodies.
Working with Sweden’s AP7 and France’s BNP Paribas Asset Management, the board will launch a new global standard on corporate climate lobbying. It will identify good practice of lobbying activities undertaken by industry associations and set out how lobbying can positively support the low-carbon transition.
Adam Matthews, chief responsible investment officer at the Church of England Pension Board, explained that two strategic stewardship priorities have been set, "covering issues that will impact our members and the world they will retire into: climate change and extractive industries”.
“These issues are inextricably linked and require systemic changes in the way companies operate, pension funds invest and in how we steward our assets. We work in partnerships with others to achieve our objectives, leading major collaborations across the finance sector and intend to continue this approach.”
This article originally appeared on Mandatewire.com
