Responses to our 2019 Responsible Investment (RI) survey found that climate change was top-of-the-list of things to address when reviewing the Fund’s RI strategy. This view matches the government’s objectives too, as it will soon be law that all pension schemes like ours need to show what steps they are taking to address climate change.

But it’s not just climate change. The Fund has billions invested around the world. So how and where we invest has the potential to make a difference, for example, by putting pressure on companies to operate in a fair, environmentally sustainable and ethical way.

“The future of humanity, and indeed all life on earth, depends on us.”

Sir David Attenborough

So what are we doing about it?

We have principles

The Fund’s investments need to be financially sound (from a return and risk perspective) and consistent with our long-term strategy. On top of that we must consider how a company is run, and its environmental and social contribution. To help us make investment decisions, we are guided by our RI principles.

We are talking about our role

The Taskforce on Climate-related Financial Disclosures (TCFD) calls for organisations to provide clear and consistent information about their approach to climate change risks and opportunities. Greater disclosure will allow better measurement of climate change risks (which then makes it easier for stakeholders to assess and minimise such risks).

We fully support the TCFD’s recommendations and in line with these, have set out our climate change approach.

We have applied RI principles to our DC default fund

The Lifestyle Fund range is what you will be investing in if you’ve made no other choices for your DC savings. Within Lifestyle you will be invested in the Diversified Growth Fund (DGF). You can also choose this fund through self-select.

From November 2020 we began to update the DGF to reflect our RI principles. We believe this move will have a positive impact on its future performance. Read more about the changes to the DGF.

We are using our size

The UKRF has the power to influence how investment managers act and how the companies in which it invests operate (through their voting rights for example). With the help of a specialist investment engagement provider we can be more proactive with our influence.

Read more stories in the NewsroomBack to top