Press Release:
Barclays Bank UK Retirement Fund integrates ESG factors and climate risk into its £1.3bn Diversified Growth Fund
- Change reflects Trustee’s Responsible Investment Policy
- Cutting-edge multi-asset growth strategy integrates ESG principles across investments, which will help to generate sustainable, long-term returns for members
London, 11 January 2021 – The Trustee of the Barclays Bank UK Retirement Fund (UKRF) today announces the integration of environmental, social and governance (ESG) factors across its Diversified Multi-Asset Growth Fund (“Growth Fund”), managed by BlackRock’s Factor Based Strategies Group. At £1.3bn in assets under management, the Growth Fund is the main building block within the default option of the UKRF Defined Contribution (DC) scheme.
The move reflects the Trustee’s Responsible Investment Policy and introduces explicit focus and application of ESG factors into investment decisions to better manage risks, including climate change, and generate sustainable, long-term returns for members.
Enhanced ESG characteristics have been introduced as additional investment criteria and will be used to screen investments in the Growth Fund to identify material ESG risks and future growth opportunities. The Growth Fund will target investments that represent material improvements in measures of ESG and carbon emissions intensity. Reflecting the Trustee stewardship principles, BlackRock will continue to engage proactively with companies in which it invests on behalf of the Trustee, on a range of issues including voting, ESG risks, climate change and the transition to a lower carbon economy.
The changes to the Growth Fund were successfully completed in 2020 and will underpin investment decisions going forward.
Peter Goshawk, Chair of the UKRF Trustee Board, said: “There is compelling evidence that sustainable business practices lead to better returns, lower risks, and improved outcomes for members in the long-term. The changes we implemented on the Growth Fund align with the Trustee’s Responsible Investment policy and principles, and they are expected to have a positive impact on the long-term performance of the Growth Fund. At the same time, members’ pension savings will face less ESG and climate change risks, and will support the transition to a lower carbon economy.”
Jennifer Ryan, Head of BlackRock’s UK Institutional Client Business, commented: “The transition to an ESG-optimised strategy marks an exciting inflection point for the Growth Fund and we are proud to have partnered with the Trustee of Barclays Bank UKRF to help them achieve this important milestone. With climate-related risks at the top of the agenda for many investors, this new and innovative strategy applies ESG factors into investment decisions to better manage material risks, such as climate change, and give members access to more sustainable long-term returns as they save for their retirement.”