Sustainable Ownership is underlined by the Trustee’s investment belief that “environmental, social and governance (ESG) factors materially impact long-term investment returns and must be taken into account”.
The report focuses on Railpen’s Sustainable Ownership activities over 2018 in three areas:

• Integration
• Ownership
• Longer-term risks and opportunities

Climate change remained a key area of focus and, during the year, Railpen implemented two types of exclusions around climate and governance and conduct. As a long-term investor, it monitors risks and opportunities over the timeframe it will be paying members’ pensions. Where it believes there to be a material risk to the long-term value of the investment or significant reputational risk, it will consider selling its holding.
Railpen is a proud supporter of the Task Force on Climate-related Financial Disclosures (TCFD) and encourages all of its portfolio companies to provide enhanced corporate disclosure in line with the framework.
It prepared its first disclosure against the framework in 2018, which can be found in the report.
To find out more about Railpen’s approach to Sustainable Ownership, and to view a full copy of the report, please visit www.rpmirailpen.co.uk/sustainable-ownership/