Our approach to sustainable ownership
We're in a privileged position to operate on behalf of our members. Our members don’t retire into a pension fund – they retire into real communities, real economies and a world undergoing rapid change. That’s why we focus on investing in ways that support long‑term value creation and contribute to a more sustainable future.
As a universal owner, Railpen takes a fully integrated approach designed to achieve strong long‑term financial outcomes while helping to build a more resilient world. Sustainable ownership is how we consider environmental, social and governance (ESG) issues – from climate change to workforce wellbeing – across our investment activities.
We believe that well‑run companies, with robust governance and forward‑looking strategies, are best positioned to deliver stable, long‑term returns for members. When companies and societies thrive, our members benefit too.
How we influence change
Our sustainable ownership model blends in-depth research, structured engagement plans and a wide range of stewardship tools. We work directly with companies and collaborate with like‑minded investors to drive improvements that matter to long‑term financial outcomes.
We also contribute to policymaking, recognising that resilient, well‑regulated markets are essential for protecting and growing members’ savings. Shaping the wider investment environment is a vital part of delivering sustainable outcomes.
Our key focus areas
Railpen’s award‑winning Sustainable Ownership team focuses on three core areas:
Integration: Embedding sustainability‑related insights across investment processes to support long‑term value creation.
Stewardship: Engaging with companies, voting thoughtfully and collaborating across the industry to help improve long‑term performance.
Climate transition: Supporting the shift to a low‑carbon economy by addressing climate‑related risks and opportunities across our portfolios.
We're action orientated
We take an active, hands‑on approach to responsible investment. We use our influence where it matters most – voting at AGMs across global markets, engaging directly with companies, and working with policymakers and regulators.
Our focus is on driving meaningful, lasting change. By collaborating with industry partners and contributing to the development of higher standards in governance, sustainability, and transparency, we help create an environment where businesses and communities can thrive.
Our voting records
Transparency is key. We publicly disclose our global voting records via externally hosted websites. Disclosure is subject to a waiting period of three months from the end of the month in which the meeting is held. Archives of our historic UK and Japanese voting are also available.
Our path to net zero
Tackling the climate crisis reflects the broader ambitions for our core purpose of securing members’ future: our members do not retire into their portfolios, but into the real world.
We are committed to achieving net zero by 2050 or sooner across our investment portfolio and the emissions associated with our corporate footprint, as set out in our updated Net Zero Plan 2025, with the following video helping to bring our approach to life.
Our long-term investment horizon exposes members’ savings to the impacts of climate change. Therefore, we have a dual responsibility: to make our investments resilient to this threat and to use our influence and scale to effect positive change in the world.
Climate leadership built on long-term action
We believe it is essential to focus on the foundational activity that can drive real impact over the long term, both climate-related and sustainability more broadly, over shorter-term headline-grabbing activity.
We do this through proactive and decisive activity:
Decarbonising our investment portfolio: We engage and encourage companies to align their business strategies with the Paris goals. Where companies do not make the progress we seek, we will escalate our engagement, voting and policy advocacy activity. We will also exclude companies whose climate risk proves unmanageable.
Investing in climate solutions: We allocate capital to companies producing those goods and services involved either in mitigating the harmful impact of climate change or in providing climate resilience.
The issue of climate change is intertwined with the declining biodiversity of animal and plant species worldwide. As such, Railpen will increasingly incorporate biodiversity discussions into our climate engagement and investments.
We are proud of our historic climate change advocacy and the steps that we have taken to create a better world for our members to retire in.
Read the Railways Pension Schemes Combined TCFD Report 2024Inside Railpen’s 2024 climate transition strategy
In this video, Railpen’s Head of Sustainable Investment and Co-head of Sustainable Ownership, Adam Gillett, outlines why the climate transition is a core sustainability and governance theme for us.
He highlights how climate change shapes Railpen’s long‑term investment approach and how we engage with companies to support alignment with global climate goals, helping protect members’ savings in a rapidly changing world.