Keeping all on board
WINNER
“The commitment to aligning investments with Paris Agreement goals, alongside extensive engagement with asset managers and companies, reflects a strong emphasis on accountability and responsible ownership,” judge’s comment
Country |
United Kingdom |
Type |
Defined contribution |
Members |
750,000 active |
AUM |
€41,762m |
Brunel Pension Partnership is one of eight UK local government pension scheme pools. It is a defined benefit structure, with £35bn (€42bn) under management. It has established a proactive approach to achieving net zero, focusing on rigorous reporting, data transparency, and effective stewardship. This approach is comprehensively integrated throughout its investment processes.
Investments are aligned with Paris Agreement goals, from the development of bespoke products to the creation of Paris-aligned benchmarks to support index-tracking investments. This underpins search criteria, scorecards for manager selection, and ongoing monitoring.
Different complementary ESG and climate-specific datasets are used to provide market leading transparency on portfolios, but Brunel continues to innovate and improve. Listed market carbon metrics for each portfolio include absolute carbon emissions, carbon footprint (carbon emissions per £1 million invested), fossil fuel revenue exposure and management quality scores based on Transition Pathway Initiative methodology. Furthermore, Brunel leverages its role to support managers in providing these metrics, sharing the best practice that its wider engagement provides, and helping it take the lead in this transition.
In 2023, across its 3,200 holdings, Brunel engaged with over 900 companies on responsible investing issues, over 600 of these on climate. Shareholder votes were carried out largely through Equity Ownership Services (EOS); Brunel co-filed three resolutions, withdrawing two successful outcomes (Barclays and Charter Communications). Engagement with Danone (via EOS) led the company to agree to disclose its progress against the Climate Action 100+ climate benchmark.
Following signs in the 2023 proxy season that some asset managers had failed to challenge adequately oil and gas companies backtracking on their own climate commitments, Brunel’s chief responsible investment officer (who is also currently chair of the UK Asset Owner Roundtable) convened a roundtable for asset owners and managers to discuss perceived misalignment of interests, with follow-on research proposing next steps.
STRATEGIC TAKEAWAYS
➤ Net zero integrated in investment strategy, focusing on reporting, transparency and stewardship |
➤ Leadership in supporting managers by providing metrics and sharing best practice |
➤ 900+ companies engaged with on responsible investing, including 600+ on climate |
HIGHLY COMMENDED
Country |
Denmark |
AUM |
€44,000m |
Performance |
8% (1yr) |
A co-founder of the Net-Zero Asset Owner Alliance, PensionDanmark last year became one of the first pension companies globally to earn the Science Based Targets initiative approval of its climate targets, specifically for investments in real estate and infrastructure. Meanwhile, listed equities and bonds account for 80% of emissions in PensionDanmark’s portfolio. By the end of 2024, its goal is to reduce its climate footprint by 20% in oil and gas, 35% in utilities, 10% in cement, and 15% in shipping.
Country |
United Kingdom |
AUM |
€40,094m |
Performance |
4.70% (1yr) |
The pension scheme for UK railway workers, Railpen, has committed to achieving net zero by 2050, and engagement is at the heart of its strategy to achieve this. A leader in voter initiatives to influence positive corporate behaviour, it also advocates for a supportive regulatory and policy environment by direct engagement with government officials, and by proactive membership of a multiplicity of industry groups, not least the Institutional Investors Group on Climate Change climate-lobbying working group, and Climate Action 100+.
Judged by
Hanish Bhatia
Daniel Gallagher
Nick Spencer
Raúl Mateos
Sponsored by
