Responsible Investment

This area of the website provides information on the Trustee's approach to Responsible Investment (RI). On this page we explain the Trustee's overall approach and the instructions that it gives to BlackRock as the Scheme's asset manager, or any other asset managers that may be appointed from time to time. Links are also provided to the overarching RI policy, and other relevant reports.

Stewardship

The objective of Stewardship arrangements is to drive up Environmental, Social and Governance (ESG) standards in the organisations in which the Scheme is invested, where consistent with the Trustees’ fiduciary duties and applicable to the Scheme’s investment strategies. BlackRock has been instructed by the Trustee to exercise voting and other rights attached to the Scheme's investments at meetings of UK and overseas listed companies wherever practicable. Details of the exercise of voting rights are reported to the Trustee and a summary of this information, along with data summarising the Scheme's larger investments, will be made available on the member website each year.

The Trustee is supportive of the Financial Reporting Council’s updated Stewardship Code 2020, of which BlackRock is a signatory. The Code sets standards for those investing money on behalf of UK savers and pensioners. The Code is made up of 12 principles which the UK’s Financial Reporting Council believes are important to creating long-term value from investments for beneficiaries. Signatories to the Code must produce a report each year which explains how they have applied the principles, demonstrating that they have been “good stewards” of the investments they look after.

The overriding objective of the Trustee is not to cause BlackRock (or any other external asset manager appointed from time to time) to take any action (whether by purchasing, holding or selling any investment) which could be reasonably expected to diminish the financial returns on the Scheme's investments as a whole.

Subject to this objective, and if applicable to the Scheme’s investment strategy, the Trustee requires BlackRock (or any other external asset manager appointed from time to time) to integrate financially material ESG considerations into the investment decision-making process across all asset classes.

The Trustees and BlackRock regularly review practices and experiences in order to keep their approach to RI relevant and up-to-date. This includes regular reviews against peers to understand policies and practices being adopted by other pension schemes.

Task Force on Climate-Related Financial Disclosures (TCFD)

Click the image below to read our latest TCFD Report.

Task Force on Climate-Related Financial Disclosures (TCFD) Report
 
Term Meaning
AVC Additional Voluntary Contributions
ABS Asset-Backed Securities
ACWI All Country World Index
BAPIML British Airways Pension Investment Management Ltd
BREEAM Building Research Establishment Environmental Assessment Method
CLO Collateralised Loan Obligation
CORSIA Carbon Offsetting and Reduction Scheme for International Aviation
CPD Continuing Professional Development
DII Diversified Illiquid Income
DWP Department for Work and Pensions
EPC Energy Performance Certificate
ESG Environmental, Social & Governance
GHG Green House Gas
IPCC RCP InterGovernmental Panel on Climate Change Representative Concentration Pathway
IRM Integrated Risk Management
LDI Liability Driven Investment
LTFT Long Term Funding Target
MSCI AC World MSCI All Country World
NAV Net Asset Value
NGFS Network for Greening the Financial System
RI Responsible Investment
SAIF Strategic Alternative Income Fund
SIP Statement of Investment Principles
TAA Tactical Asset Allocation
TCFD Taskforce on Climate-Related Financial Disclosure
TR Total Return
TRS Total Return Swaps
UKGBC UK Green Building Council
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Latest Documents

You can download BlackRock’s 2023 Stewardship Code report here.

Click the link to read or download our latest Responsible Investment Policy.

 
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