Event | ESG
THE PANEL Joining Van Hyfte on our panel was Leo George, head of sustainable ownership at RPMI Railpen.
They were joined by Laetitia Tankwe, who advises the president of French public sec- tor
pension scheme Ircantec’s trustee
board. She is also a Principles for Responsible Investment (PRI) board member and a member of Climate Action 100 plus’ steering committee. RPMI Railpen manages around £30bn on behalf of former and current railway workers. Its goal is to pay pensions securely, affordably and sus- tainably. One of the scheme’s investment beliefs is that ESG factors mate- rially impact long-term investment returns and must be reflected in how the assets are managed.
a responsible investor as well as impact the world members retire into, George said.
It seeks to influence companies by improv- ing its policies. Boardroom diversity is one example. “When we look to invest in a pri- vate company we look to ensure that there
This reminds me of a
Warren Buffet quote that investing is simple but it is not easy. ESG is similar. Leo George, PRMI Railpen
is adequate board representation as a con- dition of our providing capital,” George said.
Incorporating ESG into investment deci- sions and portfolio management has the potential to enhance returns, reduce risk and boost the reputation of the trustee as
30 | portfolio institutional | April 2019 | issue 83
“It is a work in progress, but we do see that companies and people are more engaged on this topic,” he told the audience. “As an issuer you cannot ignore this. We are part of the ecosystem.”
Tankwe pointed to Ircantec’s responsible investing charter as crucial to implement- ing its sustainable agenda.
“It is key for the decision-making process, the first pillar,” she said. “The second pillar is proxy voting and the third pillar is share- holder engagement, which is a way to influ- ence companies from the out- side. You are trying to contribute to a good ecosystem for respon- sible investing.”
OFF THE DRAWING BOARD All
of Ircantec’s assets issue for are
invested in-line with its respon- sible investment policy and cli- mate is a big
the
scheme. Addressing climate change is not only about investing in low carbon portfolios for Ircantec, it is about assisting the transition to a low carbon economy.
It is a similar story for RPMI Railpen. “We have used a bottom up approach to manag- ing climate risks,” George said. “We meas- ure our carbon footprint under the
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