Environmental, Social and Governance (ESG)

Pressure to engage with ESG comes from a range of stakeholders

Trustees have a statutory duty to monitor the ESG characteristics of their scheme investments. In their online Statement of Investment Principles (SIP), trustees must publish their approach to ESG in stewardship and investment decision-making. And in the Implementation Statement, they must now report on compliance with stewardship-related policies outlined in the SIP.

In an age of shareholder activism, ESG issues come under scrutiny from a range of stakeholders. For The Pensions Regulator, ESG is an important consideration when assessing risks around scheme investments. Close monitoring of ESG issues can mitigate the risk of association with poor business practices.

How can First Actuarial help?

The Implementation Statement

Our new stewardship service supports schemes through the production of the Implementation Statement. We base our insights – and analysis of significant votes – on a dataset provided by PIRC, a corporate governance service provider that specialises in voting and engagement activities.

From this, we produce the Implementation Statement at the level of detail required by The Pensions Regulator. This is supported by two documents which will act as an audit trail if the Regulator probes the contents of the Implementation Statement:

  • The SIP compliance checklist – A record of the clauses in the SIP related to voting and engagement, with an assessment of how the scheme has performed against each one. For schemes with a Defined Contribution section in place, we cover all clauses of the SIP, in line with legislation.
  • The annual voting report – This provides information about the voting record of each investment manager working for the scheme, and how they voted on significant votes. We believe that this report will demonstrate to the Regulator that trustees have given voting matters serious consideration.

Because we are keen to encourage trustees to engage with investment managers on voting, we are happy to provide annual voting reports to schemes where First Actuarial is not the investment consultant.

 

Why choose First Actuarial?

Our rigorous documented analysis helps demonstrate that trustees have considered ESG matters in detail. Our service saves trustees a great deal of time, while offering peace of mind that the scheme’s ESG engagement activities will stand up to scrutiny from any source.

Get in touch

Get in touch with one of our consultants to discuss how we can help you.

Investment briefings

We produce regular briefings to update trends on the latest market developments.

We recently started using First Actuarial’s Client Hub. Our trustees can log in at any time to see how the Scheme’s investments are performing on a daily basis. Our trustees have been unanimously in favour of this new portal – it’s absolutely excellent and very easy to use.”

- Helena Manley, Society Secretary, Saffron Building Society

Monitor your scheme investments with First Actuarial’s Client Hub

Download our Client Hub brochure.

DB Brochure Thumbnail

First Actuarial case studies

The Kennel Club

Concerned about the risk of an Employer contribution increase as a result of high liabilities, Trustees of the Kennel Club Pension Fund turned to First Actuarial.

“They’re extremely professional and helpful. Their input always seems sound, logical and well presented. First Actuarial handled the transition well, they provide us with helpful guidance, and have delivered what they promised when they pitched for the work.”

Read More...

Royal Mail

The Communication Workers Union (CWU) enlisted the help of First Actuarial when Royal Mail proposed replacing its Defined Benefit pension fund with individual Defined Contribution arrangements.

“I can’t speak highly enough about First Actuarial – their people have been brilliant. The journey has been inspirational, nothing but a positive experience.”

Read More...

SBAC

As a result of an unusual clause in their trust deeds, Trustees of the pension scheme sponsored by the Society of British Aerospace Companies (SBAC) funded their liabilities on a buy-out basis.

“First Actuarial are very proactive. They respond quickly and get things done. They have proved to be competent and conscientious, and have a very professional and personable approach to business relations.”

Read More...
See all our case studies
© 2020 First Actuarial | Site By Punch Creative