We know that well governed companies that manage their businesses in a responsible way will produce higher investment returns over the long term. So, it is crucial that UK pensions schemes, investing billions of pounds in listed companies around the world for millions of savers, have an interest in promoting the success of the companies in which they invest.
But effective pension scheme stewardship – the allocation, management, and supervision of capital to create long-term value for beneficiaries – is about more than simply signing up to the latest initiative or casting a vote at an AGM.
The change we’d like to see
Schemes must work with their advisers to proceed step-by-step along the stewardship journey. The PLSA has collated best practice, templates and toolkits offering members guidance on how best to engage with investee companies, including what information to request about the workforce and corporate culture, and how to hold companies accountable to shareholders.
This guidance, along with other resources, can be found here in the PLSA’s Stewardship hub.