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22/6/2021
Author: Editorial
<p>&nbsp;</p><p>At the Railways Pension Scheme, we always endeavour to ensure your pension is invested sustainably. </p><p>We work hard to consider relevant environmental, social and governance (ESG) factors into the full range of investments we make. </p><p>This is because we believe that companies with good corporate governance practices and engaged shareholders are more likely to achieve the best, long-term financial performance that members need. </p><p>Strong governance tends to ensure effective management of all relevant risks and opportunities, including those related to environmental and social factors. By actively engaging with these companies, it is possible to have a positive influence. This helps us to enhance long-term investment returns for members.</p><p>We always examine environmental, social and governance (ESG) factors when considering investment decisions as they are considered crucial to the long life and success of a company. Companies that follow high quality environmental, social and governance standards are more likely to outperform others in the long-run.&nbsp; </p><p>In order to achieve the wisest balance, we consider investment opportunities in four ways: </p><ol><li>How does it improve our investment returns?</li><li>How does it reduce our investment risk? </li><li>How does it affect the future world our members retire into?</li><li>How does it impact our reputation as a responsible investor? </li></ol><p>Here are some examples of where we have invested recently: </p><ul><li>&nbsp;<span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; font-size: inherit">In 2017 we invested in Community Fibre, a UK-based broadband provider offering superfast broadband in dense urban areas.</span><p><br></p></li><li>In 2018 we invested in Two Chairs, a mental health therapy platform intended to offer in-person psychotherapy at clinics. They use modern technology on their platform to match therapists with clients for better outcomes. <p>&nbsp;</p></li><li>In 2019, we invested in a mixed-use development site in Dartford with five high quality detached warehouse units. This is expected to create around 400 new jobs and will have excellent sustainability credentials expected to achieve BREEAM Excellent. BREEAM is the world’s leading sustainability assessment method for infrastructure and buildings<p>&nbsp;</p></li><li>In 2020 we purchased the majority interest in an onshore wind farm in Scotland, Carraig Gheal Wind Farm.&nbsp; This investment is expected to generate renewable energy over the next 30 years and help the decarbonisation of the UK energy supply.<p>&nbsp;</p></li><li>In 2020 we co-invested in Sleaford Renewable Energy Plant, a biomass facility in Lincolnshire.&nbsp; The plant has been operational since 2014 and converts local straw into heat and energy, as a renewable source of power.<p>&nbsp;</p></li><li>In 2021, we invested in MIPS, a company that makes a patented Brain Protection System for helmets that mimics the brain’s own protection system, offering a scientifically-proven element and much better protection than current products. </li></ul><p>&nbsp;Our Sustainable Ownership team has played a leading role in a number of investment industry initiatives aimed at raising industry standards. Team members sit on several government working groups such as the Pensions Climate Risk Industry Group, which produces guidance for other pension schemes to help them consider climate investments, and the Occupational Pension Schemes Council, which supports schemes to become good stewards of members’ savings. </p> <p>We recognise that members and employers trust us with a significant responsibility, and that the decisions and actions we take affect members’ future lives and wellbeing. We are proud of this responsibility, take it very seriously and are committed to and passionate about improving the lives of members.</p><p>For more information on how your contributions are invested and the people behind your pension, visit our earlier blog “From payslip to pension” <a href="https://member.railwayspensions.co.uk/resources/blog/rps-blog/2021/05/28/from-payslip-to-pension" data-sf-ec-immutable="">here</a>.</p>
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Our responsible investment choices

See why and where we invest sustainably

 

At the Railways Pension Scheme, we always endeavour to ensure your pension is invested sustainably.

We work hard to consider relevant environmental, social and governance (ESG) factors into the full range of investments we make.

This is because we believe that companies with good corporate governance practices and engaged shareholders are more likely to achieve the best, long-term financial performance that members need.

Strong governance tends to ensure effective management of all relevant risks and opportunities, including those related to environmental and social factors. By actively engaging with these companies, it is possible to have a positive influence. This helps us to enhance long-term investment returns for members.

We always examine environmental, social and governance (ESG) factors when considering investment decisions as they are considered crucial to the long life and success of a company. Companies that follow high quality environmental, social and governance standards are more likely to outperform others in the long-run. 

In order to achieve the wisest balance, we consider investment opportunities in four ways:

  1. How does it improve our investment returns?
  2. How does it reduce our investment risk?
  3. How does it affect the future world our members retire into?
  4. How does it impact our reputation as a responsible investor?

Here are some examples of where we have invested recently:

  •  In 2017 we invested in Community Fibre, a UK-based broadband provider offering superfast broadband in dense urban areas.


  • In 2018 we invested in Two Chairs, a mental health therapy platform intended to offer in-person psychotherapy at clinics. They use modern technology on their platform to match therapists with clients for better outcomes.

     

  • In 2019, we invested in a mixed-use development site in Dartford with five high quality detached warehouse units. This is expected to create around 400 new jobs and will have excellent sustainability credentials expected to achieve BREEAM Excellent. BREEAM is the world’s leading sustainability assessment method for infrastructure and buildings

     

  • In 2020 we purchased the majority interest in an onshore wind farm in Scotland, Carraig Gheal Wind Farm.  This investment is expected to generate renewable energy over the next 30 years and help the decarbonisation of the UK energy supply.

     

  • In 2020 we co-invested in Sleaford Renewable Energy Plant, a biomass facility in Lincolnshire.  The plant has been operational since 2014 and converts local straw into heat and energy, as a renewable source of power.

     

  • In 2021, we invested in MIPS, a company that makes a patented Brain Protection System for helmets that mimics the brain’s own protection system, offering a scientifically-proven element and much better protection than current products.

 Our Sustainable Ownership team has played a leading role in a number of investment industry initiatives aimed at raising industry standards. Team members sit on several government working groups such as the Pensions Climate Risk Industry Group, which produces guidance for other pension schemes to help them consider climate investments, and the Occupational Pension Schemes Council, which supports schemes to become good stewards of members’ savings.

We recognise that members and employers trust us with a significant responsibility, and that the decisions and actions we take affect members’ future lives and wellbeing. We are proud of this responsibility, take it very seriously and are committed to and passionate about improving the lives of members.

For more information on how your contributions are invested and the people behind your pension, visit our earlier blog “From payslip to pension” here.