2023 Sustainable Ownership Member Review

This member-focused document, which follows Railpen's annual Stewardship Report published in May 2024, provides an overview of Railpen's sustainable ownership work, including what we've been doing on their behalf as proactive asset owners.

Michael Marshall , Caroline Escott / 28 October 2024

Our annual Sustainable Ownership Member Review explains directly to members why we invest their money sustainably, what we did on their behalf in 2023 and provides an insight into our plans for the next 12 months.

We provide an overview of our sustainable ownership work in a simple, accessible format, alongside case studies and cover topics that members tell us matter most to them – in 2023 these were:

Fair treatment of workers
Fair pay
Making sure company boards can be held to account

2023 Member Review highlights: 

Promoting the worth of the workforce (one of Railpen members’ top concerns in 2023), including an initiative launched with other investors to encourage companies to improve their engagement with their workers, as well as collaborating with the UK government’s Taskforce on Social Factors to help draft guidance for other investors on how to consider workforce treatment issues in their investment strategies.
Ensuring sustainable financial markets through the Investor Coalition for Equal Votes (ICEV) and more broadly. Key activity highlights included a policymaker dedicated report outlining the implications of dual-class share structures for companies’ financial performance, as well as bringing UK asset owners together to respond to recent changes to the UK’s equity listing rules, advocating on behalf of robust investor protections and high corporate governance standards for companies, investors and beneficiaries.
Assessing companies’ climate risks to shape engagements with companies such as Nucor, a large US-based steel producer with a high emissions footprint, and WEC Energy, a substantial US electric utility with a reliance on coal-fired generation. In line with Railpen’s climate engagement asks, Nucor has subsequently lowered the emissions intensity of its steelmaking operations, and WEC Energy improved its climate reporting and scenario analysis.

New for 2023 – member videos

For the first time, the Member Review is supported by a series of videos to further help members understand how Railpen considers and acts upon ESG issues that matter most to member outcomes.

Part one provides an overview of the 2023 Review – for members’ wanting to learn more about our approach.

Watch part one: An overview of our 2023 Sustainable Ownership Member Review

Part two highlights the outcomes achieved against the team’s thematic priorities.

Watch part two: Our work on members' behalf