Asset Owners Network current activities
The Asset Owners Network is working through ten priority commitments across three action areas:
Engagement along the investment chain
1. Engaging with pension scheme beneficiaries
2. Engaging with asset managers and investment consultants
3. Engaging with investee companies at AGMs
4. Engaging with pension scheme sponsors (see below)
Embedding into investment decisions
5. Integrating ESG considerations into investment decision making (eg frameworks and/or governance
6. Embedding climate and ESG risk management into: listed equity; fixed income; infrastructure; real estate; and private equity
7. Making defined contribution pension scheme default funds sustainable
8. Assigning a percentage of assets to an innovation or opportunities fund
Reporting and collective action
9. Implementing recommendations of the FSB Task Force on Climate-related Financial Disclosure (TCFD) (see below)
10. Signing up to the Transition Pathway Initiative (TPI) (see below)
Engaging with pension scheme sponsors
Members of the Asset Owners Network and their sponsor organizations contributed to A4S’s Sustainable Investing in Pensions: Top Tips for Sponsors of Pension Schemes. The guide sets out why the sponsor should engage with their pension scheme on sustainable investing, summarizing the regulatory landscape, providing some practical steps for engagement both with pension trustees and the sponsor's employees, and referring to best practice examples.
Implementing recommendations of the FSB Task Force on Climate-related Financial Disclosure (TCFD)
Shortly after publication of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). In 2017, the A4S Asset Owners Network collectively signed a statement of support committing to work together towards adoption of the recommendations.
The Network has since worked towards better and wider uptake of these recommendations both within their own schemes and through their engagement across the investment chain.
Signing up to the Transition Pathway Initiative (TPI)
Members of the Asset Owners Network have signed up to the Transition Pathway Initiative (TPI), which was founded by two of the Network’s members - the Church of England National Investing Bodies and the Environment Agency Pension Fund. The TPI assesses how companies are preparing for the transition to a low carbon economy. It is supported by asset owners and managers with over $19 trillion combined assets under management and advice, who use the results of the TPI’s analysis to inform investment decision making, engagement with companies, and dialogues with fund managers and policy makers.
The TPI evaluates and tracks the quality of companies’ management of their greenhouse gas emissions and of risks and opportunities related to the low carbon transition. It evaluates how companies’ future carbon performance would compare to the international targets and national pledges made as part of the Paris Agreement and it publishes the results of this analysis through an online tool.