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Sustainable ownership

Sustainable ownership is our approach to considering sustainability and governance issues, such as climate change and executive pay, when managing investments on behalf of members.

What is sustainable ownership?

Sustainable ownership describes how we consider financially-relevant sustainability and governance issues in our investment decisions, monitor wider risks, use our voting rights and engage with companies we invest in. This helps support the long-term financial outcomes that underpin members' pensions.

We use a range of tools to encourage companies to address governance and sustainability issues that could affect their long-term performance. This includes engaging directly with companies, as well as policymakers and regulators on wider risks that can affect investments. We believe understanding and managing these issues can help protect the long-term value of members’ investments.

We talk to companies about financially relevant sustainability and governance issues that are specific to them, as well as wider issues that may affect many of the companies we invest in. We also work with other investors, including other pension funds, to make our work as effective as possible.

We apply sustainable ownership principles to all our investments, whether in:

  • companies listed on a stock exchange, or ‘listed equities’
  • infrastructure assets, such as energy or telecoms, or
  • private debt - lending money to companies that aren’t listed on a stock exchange
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Sustainable ownership looks at environmental, social and governance (ESG) issues, such as:

  • fair treatment of workers
  • climate change
  • fair pay, including executive pay 
Why does it matter to members?

You, and your employer both pay contributions while you’re an active member of the railways pension schemes. These contributions are invested in different ways with the aim of generating the returns needed to help pay members' pensions over the long term.

We believe in investing pension contributions in companies that are well-run, and that seek to address all the risks and opportunities related to how their business works, including environmental, social and governance (ESG) issues. This is because evidence shows that well-run, responsible companies thrive and perform better in the long run.

Video: Why we invest sustainably

Watch this short video to find out why we take a responsible approach to the way we invest members' money and what this means for them.

Railpen's role as an industry leader

As the manager of one of the UK’s largest pension schemes, we take our responsibilities seriously and work hard to lead the industry on sustainable ownership.

The scale of our assets allows Railpen to benefit from an expert in-house sustainable ownership team, which works closely with others across Railpen. This team is dedicated to undertaking sustainable ownership in a way that positively impacts the value of your savings and income in retirement.

Our sustainable ownership work has been recognised by industry peers, with awards including:

  • 2025 RAAI Leaders List: Top 30 Responsible Asset Allocators globally
  • 2025 International Corporate Governance Network (ICGN) Awards: Excellence in Corporate Governance
  • 2025 Professional Pension UK Pensions Awards and IPE Transition Awards: Environment, Social and Governance (ESG)
  • 2025 Manager of the Year, Private Markets Investment, and Leadership in Energy Transition & Net Zero Awards
  • 2025 IPE European Pension Fund Awards: 

- Carbon and Net Zero Strategies
- ESG Strategy
- Alternatives – highly commended
- Regional, UK – highly commended

  • 2024 ICGN Stewardship Disclosure Award (asset owners < $60bn AUM)
  • 2024 Actum Group Value Creation LP ESG Award
  • 2023 Clearpath ESG Investment Innovation of the Year Award
  • 2023 Financial News Most Influential in Sustainable Finance in Europe – Caroline Escott, Senior Investment Manager
  • 2023 Financial News Rising Stars of Fund Management – Sophie Harris, Senior Investment Analyst
  • 2023 Simon Fraser Stewardship Award – Michael Marshall, Director of Investment Risk and Sustainable Ownership
  • 2023 Simon Fraser Investment Innovation Award
Supporting members' pensions over the long term

We believe considering financially relevant sustainability and governance issues can help protect the long-term value of members' investments.

You can let us know what you think about our sustainable ownership work anytime, by emailing so@railpen.com.

Check in on recent progress

Read our latest Sustainable Ownership Member review to see how Railpen has acted on behalf of members and incorporated sustainability and governance considerations into investment decisions over the past year.

The information provided on this website is intended for general information and illustrative purposes. Your benefits will be worked out in accordance with and subject to the governing trust deed and rules and relevant legislation.

Although every effort has been made to ensure the information given on this website is accurate, none of the information provided can give you, or your beneficiaries, legal rights to benefits that differ from those provided in the pension trust and rules.

We recommend that you get independent financial or specialist advice before making any important decisions about your pension arrangements.