BTPS

Sustainable investment

The Scheme’s main objective is to ensure there are sufficient assets to pay the right benefits at the right time to members and their beneficiaries under the Rules of the Scheme.

This commitment is central to how the Scheme thinks about its investments and this is mirrored in BTPS’ responsible investment mission statement: “The Scheme’s investments should be managed to create sustainable long-term value, supporting the generation of optimal investment returns to ensure the Scheme can pay all benefits in full”.

The implications of this statement in terms of governance, investment strategy, portfolio management and reporting are set out in the Responsible Investment Policy.

In the latest assessment exercise by the PRI, we were pleased to achieve an overall A+ for our work on responsible investment.

The assessment is based on signatory responses to the PRI Reporting Framework and is carried out annually to assess the responsible investment activities undertaken by each signatory during the year.

The Scheme also supports the recommendations made by the Task Force on Climate-related Financial Disclosures (TCFD) and has reported in line with these recommendations in the latest Report and Accounts.

BTPS responsible investment & stewardship report 2020 / 2021 PDF DOWNLOAD
Responsible investment policy PDF DOWNLOAD
2020 Assessment Report PDF DOWNLOAD

Climate change

BTPS has committed to an ambitious goal to achieve net zero greenhouse gas emissions (absolute scope 1-3) by 2035 across our £57.5 billion portfolio.

In setting this goal, we will reduce the risks posed to the Scheme from climate change and align our investments with efforts to limit global warming to 1.5°C above preindustrial levels.

Getting to net zero will involve both reducing emissions from the Scheme’s portfolio and investing in assets that will support the transition towards a low carbon economy. It is an ambitious goal that we cannot achieve alone - data on emissions needs to improve and companies, governments and consumers must act.

BTPS has a long track record of considering climate change risks as part of our investment strategy. We first began in 2007 and over the years, we have benefitted from involvement with the Principles for Responsible Investment (PRI), the Institutional Investors Group on Climate Change (IIGCC) and the general improvement in the industry’s understanding of the subject.

In addition, we have participated in studies undertaken by Mercer in 2011, 2015 and 2019 investigating the potential impact of climate change on investment returns.

Read more in our Climate Change Policy.

Climate Change Policy PDF DOWNLOAD

BTPS Net Zero 2035 Goal

BTPS has set a goal to be net zero GHG emissions (absolute scope 1-3) by 2035 and in doing so, to be aligned with the Paris Agreement’s goal of net zero by 2050.

We will seek, over time, to decarbonise the portfolio and investment value chain and make investments that will reduce or remove carbon emissions from the atmosphere.

Our goal is supported by four pillars

Portfolio
construction

Mandates and
managers

Stewardship

Advocacy

Beneath these pillars are 20 climate actions that we are committing to. See our climate change policy booklet.

Voting and engagement

Stewardship is central to our investment philosophy and we seek to act as a responsible and engaged owner of the companies in which we invest.

Hermes EOS is the Scheme’s primary provider of stewardship services, including voting and engagement. Where engagement is fundamental to the investment strategy and they can demonstrate sufficient capabilities, the Scheme may appoint an investment manager to undertake stewardship services for their specific mandate instead of Hermes EOS.

Hermes EOS and, where applicable, investment managers are mandated to execute all votes for the Scheme’s directly held public securities. Where relevant, proxy voting activity is undertaken as part of a wider engagement strategy.

More information on the Scheme’s approach to stewardship, together with the latest voting and engagement reports, can be found under the relevant links.

Hermes EOS Engagement Objectives & Plan PDF DOWNLOAD
Engagement report PDF DOWNLOAD
Engagement statistics PDF DOWNLOAD
Voting statistics PDF DOWNLOAD
Voting disclosure XLS DOWNLOAD
Public policy report PDF DOWNLOAD

Regulatory reporting

Read our annual report and accounts and other regulatory reports.

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