PIC admitted to the list of signatories of the UK Stewardship Code

PIC a specialist insurer of defined benefit pension schemes, has become a signatory to the Financial Reporting Council’s UK Stewardship Code (‘the Code’).

PIC joins the group of 277 signatories to the Code following an extensive review by the Financial Reporting Council’s process which considers organisations’ investment styles, sizes and types.

The Code sets high standards of stewardship for those investing money on behalf of UK savers and pensioners. To become a signatory, organisations have to demonstrate stewardship over the previous twelve months through the responsible allocation, management and oversight of capital which creates long-term value for beneficiaries and leads to sustainable benefits for the economy, the environment and society. For example, we have incorporated ESG objectives and climate reporting into a private lending covenant on an infrastructure debt financing deal and put our coal policy in action by engaging with firms on their plans to reduce coal exposure over the near term.

More details can be found in the full Stewardship Code Application 2023 published on our website here: PIC Stewardship Code Application 2023 (pensioncorporation.com).

In addition to the Code, PIC is also a member of the UN-convened Net Zero Asset Owners Alliance and is a signatory to its Principles for Responsible Investing. In March 2023, PIC announced that it had achieved its 2025 target to reduce the Weighted Average Carbon Intensity (‘WACI’) of its investment portfolio by 25% on a 2019 baseline, two years ahead of the target date. PIC continues to work towards a 50% reduction in the portfolio WACI by 2030 and being carbon neutral in its own operations by 2025.

Cleo Fitzsimons, Head of Responsible Investing at PIC, said: “We are delighted to become a signatory to the Code and to support the Financial Reporting Council’s work to ensure a high level of stewardship is achieved throughout our industry. The principles of responsible stewardship are embedded across the management of our asset portfolio through our recently established Engagement Strategy. It is a fundamental part of our long-term investment strategy and securing our purpose which is to pay the pensions of our current and future policyholders now and in the future.”

The Code applies to asset owners, such as pension schemes, insurers, foundations, endowments, local government pension pools and sovereign wealth funds; asset managers, who manage assets on behalf of UK clients or invest in UK assets; and service providers, such as investment consultants, proxy advisors, data and research providers that support asset owners and asset managers to exercise their stewardship responsibilities.

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