How we invest

The Fund expects its investment managers to take account of Environmental, Social and Governance (ESG) considerations in the selection, retention and realisation of investments as an integral part of the normal investment research and analysis process. The Fund also expects its investment managers to engage with companies held on all matters in regard to good stewardship. The Fund believes taking account of such consideration’s forms part of the investment managers’ normal fiduciary duty.

In addition, the Fund has developed an Investment Engagement Strategy which was subject to a light touch review during 2024/25. This sets out a Framework outlining how Members of the Investment Steering Committee (ISC) and the Fund engage with its investment managers and the companies they engage with on the Fund’s behalf; and discharge their stewardship responsibilities.

However, from 01 April 2026 this engagement will be undertaken and managed by Border to Coast Pensions Partnership (BCPP) and Fund Officers are in the process of developing an engagement strategy with the pool.

The Investment Steering Committee (ISC) has developed its RI Policy based on a set of RI beliefs. As part of this Policy, the Committee has identified the following 10 key RI Priorities which it expects the Fund’s investment managers to engage with companies invested in on the Fund’s behalf: Climate Change; Labour practices; Resource scarcity; Employee relations; Pollution; Company governance; Controversial weapons; Management board structure; Remuneration; and Diversity.

The Committee believes that these should not be viewed in isolation, but holistically, with no one priority being more important that the other. However, the ISC did recognise that in order to monitor meaningful progress that during 2024 it continue to concentrate on a subset of these Priorities. The 2024 RI Priorities being: Climate Change; Resource Scarcity; Employer Relations; and Manager Board Structure. Each year the ISC reconfirm the Fund’s RI Priorities to ensure they remain appropriate.

In addition, the Fund has developed an Investment Engagement Strategy which was subject to a light touch review during 2024/25. This sets out a Framework outlining how Members of the Investment Steering Committee (ISC) and the Fund engage with its investment managers and the companies they engage with on the Fund’s behalf; and discharge their stewardship responsibilities.

For more information please refer to the Fund's Annual RI report.

The Fund has undertaken a lot of work over the last few years in regard to formulating its RI Policy. This resulted in the ISC’s decision to aspire to become a signatory to the Financial Reporting Council’s (FRC) UK Stewardship Code back in 2022. I’m pleased to confirm that the Fund was notified that it had achieved signatory status for the fourth consecutive year. The most current submission can be found here. The Code comprises a set of twelve ‘apply and explain’ principles around four areas of: Purpose and Governance; Investment Approach; Engagement; and Exercising Rights and Responsibilities. To note, gaining signatory status is challenging and not just a tick box exercise. The Fund will, in May, be submitting its 2026 submission to the FRC.