RPMI Railpen publishes 2018 global voting policy

RPMI Railpen (Railpen), which manages £28 billion on behalf of the railway pension schemes, has today published its Voting Policy for 2018. The policy update reflects Railpen’s three key themes: board composition & effectiveness, remuneration, and shareholder rights & disclosure. Railpen is a supporter of the International Corporate Governance Network (ICGN), whose Global Governance Principles have been incorporated in the policy.

Leo George, Head of Sustainable Ownership at Railpen, said:

“We have a long history as an active and engaged shareholder. We believe that companies with robust corporate governance structures are more likely to achieve better long-term financial performance, and more effectively manage all of their risks and opportunities. This helps us to achieve our mission to pay members’ pensions securely, affordably and sustainably.”

A key focus of this policy is integrating climate considerations into Railpen’s voting and engagement approach. Railpen supports the Task Force on Climate-related Financial Disclosures (TCFD), published last year, which asks companies to disclose their governance, strategy, risk management and metrics & targets related to climate risk. Railpen wrote to over 200 of its most significant holdings last week to say it encourages all its portfolio companies to provide enhanced corporate disclosure in line with this framework.

Railpen is also a signatory to the CDP and Transition Pathway Initiative (TPI) responsible investment initiatives and will vote against companies who do not respond to their disclosure requests.