On the go: The Investment Association and the Pensions and Lifetime Savings Association have launched a steering group to examine how stewardship can be better integrated into the investment process.
The new group, which is co-chaired by PLSA chair Richard Butcher and Archie Struthers, global head of investment governance and oversight at Standard Life Aberdeen, brings together asset owners, investment managers and other stakeholders.
The steering group, which has already held its inaugural meeting, will consider a range of issues, such as what steps investment managers can take to understand and deliver their clients’ stewardship priorities.
The parties will also look at the role investment managers’ disclosures play in the information flow between managers and asset owners in their approach to stewardship, how asset owners ensure stewardship plays a key role in their approach to manager selection, and the role the contractual relationship and non-contractual arrangements can play in embedding a long-term focus and clear stewardship expectations, the IA stated.
Mr Butcher said that if “pension schemes are to deliver on an intention to invest in a climate-aware fashion, they need to articulate that intention clearly enough that it will be delivered by their agents”.
He added: “This new group will develop ideas for overcoming these barriers, and in doing so will significantly move the cause of investing for good forward. I’m personally, and on behalf of the PLSA, really glad to be involved.”
Members of the steering group also include Rachel Elwell, chief executive of Border to Coast Pensions Partnership, Stuart O’Brien, partner at Sackers, and Nest CEO Helen Dean, among others.
Ms Dean noted that with the annual meetings season fast approaching, “now is the time for investors to be considering key issues affecting businesses”.
She said: “AGMs are one of the few formal times where shareholders can directly engage with the board and senior executives and have a say in how the company is run.
“We have high expectations for companies we invest in, from having the right corporate governance in place to taking issues like workforce pay and climate change seriously.
“If we don’t believe there’s enough progress in these areas, we’ll readily vote against management or support shareholder resolutions.”
