Sustainable investing

As a member of a workplace pension you and/or your employer are contributing to your pension savings account each month. When you save into a pension plan, your pension savings are invested into funds. As a member of the pension plan this makes you an investor, and you can decide where your contributions are invested. You can opt to invest in the default investment option, or you can choose to self-select funds.

The Board of Directors through its Investment Committee carefully monitors the funds that are offered through the FEPP. We expect the fund managers we work with to outline how they assess companies on ESG factors. In addition, we require fund managers to measure the effectiveness of their strategy in terms of how it benefits members of pension schemes and other investors.

Read more about our engagement policies and those of our Fund Managers:

• Read Fidelity's Shareholder Engagement Policy
• BlackRock Life Limited Engagement Policy
• Pimco Europe Limited Statement in Relation to the Shareholder Rights Directive II
• T. Rowe Price Engagement Policy

Whether you are investing via your scheme's default investment option or you are choosing your own funds for your workplace pension, you can find out more about the funds you are invested in by reading about the investment objectives in fund documentation.

There are different approaches to investing sustainably - you might invest in funds that avoid certain activities or industries altogether. Others see sustainable investing as a more proactive approach, where companies make a positive difference and act as voice for change. Finally, you can look at companies in each sector with the strongest ESG credentials.

All investments come with a certain degree of risk. Investment risk to you as an investor is simply that you may not achieve your intended financial goals. 

Just how much risk you're prepared to take is likely to be influenced by a number of factors, including:

• your investment goals
• the timescale over which you are investing
• whether you require income from your investment or want to grow your portfolio
• the type of investment and the level of risks that suits you.

The fund factsheets on PlanViewer break down the level of risk so you can choose what is right for you and what you feel comfortable with.

We recognise that climate change poses one of, if not the most, significant risk to the long-term profitability and sustainability of companies, including our own. We are de-carbonising in a number of ways:

• Propriety ratings – as an asset manager we use these to identify companies exposed to climate risk, whether physically or from increased regulations. We then engage with companies to manage risks.
• Participation in global programmes – such as Climate Action 100+ initiatives that push large emitters towards more sustainable business models.