Resources

Sustainable Ownership Report

Sustainable Ownership report

RPMI Railpen publishes 2018 Sustainable Ownership report

The latest report highlights how sustainability considerations play a key role in the investment decision-making process for the teams at the Scheme’s investment manager, Railpen.

Sustainable Ownership is underlined by the Trustee’s investment belief that 'environmental, social and governance (ESG) factors have a material impact on long-term investment returns and must be taken into account.'

The report focuses on our activities in three areas:

  • Integration
  • Active Ownership
  • Longer-term risks and opportunities

Climate change remains a key area of focus. As long-term investors, we monitor risks and opportunities over the timeframe we will be paying members’ pensions.

Where we believe there to be a material risk to the long-term value of the investment or significant reputational risk, we will consider selling our holding.

Railpen is a proud supporter of the Task Force on Climate-related Financial Disclosures (TCFD) and we encourage all our portfolio companies to provide enhanced corporate disclosure in line with the framework. We prepared our first disclosure against the framework in 2018, which can be found in the report.

Find out more about Railpen’s approach to Sustainable Ownership.

 

Case study: Persimmon plc

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Our voting record

Persimmon, a FTSE 100 housebuilder, saw nearly two-thirds of investors vote against their remuneration report or abstain on this item.

RPMI Railpen voted against the remuneration report at the 2018 AGM. The cause of investor revolt was an excessive payout from the Long Term Incentive Plan (LTIP) which was approved by 85% of shareholders in 2012. RPMI Railpen voted against the LTIP in 2012.