Engagement along the investment chain
Pension scheme trustees, at the start of the investment chain, are in a powerful and influential position to ensure their investment beliefs are felt all the way down to the companies they invest in. However, maintaining alignment to these beliefs as the investment decisions move through the investment chain can sometimes be a challenge.
A4S’s ESG Toolkit for Pension Trustees contains a maturity map, guidance, case studies, and third-party resources to help equip trustees with peer-tested practical steps to engage with members, sponsors, advisers, fund managers and investee companies on sustainability-related issues.
The ESG Maturity Map can help you as a pension trustee benchmark your current level of engagement with key stakeholders against best practice. It also provides practical steps that you can take to improve relationships with these actors. Many trustees have also used this maturity map to:
- Achieve consensus across the board of trustees on where their priority actions should be on stewardship, manager recruitment and mandates etc.
- Understand where they are, in relation to other schemes.
- Challenge and probe further into responses from advisers and fund managers on how they are aligning their activities with your investment beliefs.
These guides have been written for trustees and include insights from peers with suggested practical steps and ‘top tips’. They are designed to support trustees on in-depth discussions related to sustainability considerations with their service providers and internal colleagues. The resources complement more granular work done on the same topic by other organizations, which can be found in the external resources section below.
Our case studies capture the 'what', 'why' and 'how' a pension scheme should effectively engage with key stakeholders across the investment chain. The practical steps taken and top tips suggested are often transferable to large and small pension schemes from different jurisdictions.
This is not an exhaustive list, but we find that the resources below complement this section of the toolkit.