Railpen report suggests dual focus on engagement and divestment

Railpen, one of the UK’s largest pension funds, has published its 2021 ownership review. The report is aimed at communicating the fund’s efforts on a range of issues including climate change and making the relevant information easily accessible to a wider audience. According to the report, stewardship and engagement on net-zero transitions as well as progress on related fronts such as biodiversity are focus areas for the fund. In addition, Railpen’s climate strategy involves a strategic mix of engagement and divestment. The report states: “Where possible we prefer to remain invested in companies, retaining our stake so we have a voice to improve company behaviour. In some cases, however, we think that climate-related business risks are so extreme that we choose not to invest at all: the railways pension schemes were some of the UK’s first pension schemes to divest from companies on climate grounds.”