PLSA highlights Minerva clients as examples of best practice

March 14th, 2024

The Pensions and Lifetime Savings Association (PLSA) has released a sample of best practice case studies, including some which are Minerva clients, showing how to focus on social factors in their stewardship activities.

The six case studies in its new report demonstrate best practice across the investment cycle, from how to approach investing with impact through to specific examples that highlight what opportunities are available.

Altogether the PLSA identified Scottish Widows, AXA Investment Managers, Franklin Templeton, Legal & General Investment Management, Railpen and Nest as case studies for best practices.

Social factors have historically received less attention than environmental and governance factors within the investment industry. The PLSA noted that while “in an ideal world” ESG factors would be considered holistically, the focus on environmental factors in recent years has meant reports like this one dedicated to social factors are more significant.

It said: “At the PLSA, we and our members have long championed the importance of socially responsible investing.

“These case studies provide tangible examples that intend to support members as they navigate the challenges and opportunities that social factors present and seek to keep social issues at the centre of pension schemes’ thinking among a plethora of competing priorities.”

In the report, Scottish Widows was highlighted for its overall approach to social factor stewardship. The pension fund chose human rights as its social factor stewardship theme in 2022 to engage on risk management processes to address a company’s adverse human rights impacts.

The pension fund also works collaboratively with the ShareAction Good Work Coalition, the FAIRR Initiative, the global network of investors focused on ESG in the food sector, and the Labour Rights Investor Network.

Nest was selected for its work in tackling forced labour through stewardship and screening. To mitigate its exposure to social risks in some of its investments it implemented a United Nations Global Compact (UNGC) screen within its emerging market equities fund.