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Sustainable Ownership

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One of the Trustee’s core investment beliefs relates to Sustainable Ownership. This states that companies with robust corporate governance structures and engaged shareholders are more likely to achieve superior long-term financial performance and will manage all of their risks and opportunities appropriately, including those related to environmental and social factors.

In line with this core belief Railpen developed a new Sustainable Ownership investment framework in 2015. This considers the impact of ESG factors, where they potentially have material impact on the long term performance of investments.

The Trustee has a long history as an active and engaged shareholder. Trustees of UK occupational pension schemes are required by law to address in their Statement of Investment Principles (SIP) the extent to which social, environmental and ethical (SEE) considerations are taken into account in the selection, retention and realisation of investments. This includes their policy directing the exercise of rights (including voting rights) attached to investments. These factors are commonly referred to as ESG (environmental, social and governance) factors.