BTPS

Sustainable investment

The Scheme’s main objective is to ensure there are sufficient assets to pay the right benefits at the right time to members and their beneficiaries under the Rules of the Scheme.

This commitment is central to how the Scheme thinks about its investments and this is mirrored in BTPS’ responsible investment mission statement:

“The Scheme’s investments should be managed to create sustainable long-term value, supporting the generation of optimal investment returns to ensure the Scheme can pay all benefits in full”.

The implications of this statement in terms of governance, investment strategy, portfolio management and reporting are set out in the Responsible Investment Policy.

In the latest assessment exercise by the PRI, we were pleased to achieve an overall A+ for our work on responsible investment.

The assessment is based on signatory responses to the PRI Reporting Framework and is carried out annually to assess the responsible investment activities undertaken by each signatory during the year.

The scheme also supports the recommendations made by the Task Force on Climate-related Financial Disclosures (TCFD), which can be read in the 2024 TCFD Report.

In March 2024, the Financial Reporting Council (FRC) confirmed BTPS’ continued signatory status to the UK Stewardship Code. The UK Stewardship Code sets high standards with a set of 12 principles on reporting stewardship activities and outcomes which asset managers and asset owners like BTPS must demonstrate they meet.

BTPS Stewardship Report 2024 PDF DOWNLOAD
BTPS Stewardship Report 2023 PDF DOWNLOAD
Responsible investment policy PDF DOWNLOAD
2020 Assessment Report PDF DOWNLOAD
Thermal Coal Policy 2023 PDF DOWNLOAD
TCFD Report 2024 PDF DOWNLOAD

Member visit to Birmingham Paradise.

BTPS Members explore one of the Scheme’s sustainable UK investments.

Climate change

In 2020 the Scheme set a 2035 net zero ambition reflecting that climate change poses a risk to the Scheme meeting its long-term financial commitments. To achieve this ambition, we are focussed on reducing emissions from the Scheme’s portfolio and investing in assets that will support the transition towards a lower carbon economy. In doing so, we believe we will improve the risk adjusted outcomes for the Scheme.

Whilst we are making good progress, we are not complacent. Achieving the reduction in emissions required to meet the 2035 ambition will become challenging as we become more reliant on decarbonisation of the global economy which is dependent on the policy of governments and the behaviour of companies and consumers

We also recognise the challenges associated with achieving a fair transition. There is a need to balance progress on decarbonisation with social challenges, such as the cost of domestic energy, and the requirement for long-term energy security.

We continue to seek to influence the businesses in which we invest through active stewardship. We also continue to work alongside other asset owners through initiatives, such as the Net Zero Asset Owner Alliance, to assert collective influence. This includes engaging with governments and regulators to contribute actively to the discussion on decarbonisation.

Read more in our Climate Change Policy.

Climate Change Policy PDF DOWNLOAD

BTPS Net Zero 2035 ambition

BTPS has a target goal to be net zero GHG emissions (absolute scope 1-3) by 2035 and in doing so, to be aligned with the Paris Agreement’s goal of net zero by 2050.

We will seek, over time, to decarbonise the portfolio and investment value chain and make investments that will reduce or remove carbon emissions from the atmosphere.

Our goal is supported by four pillars

Portfolio
construction

Mandates and
managers

Stewardship

Advocacy

Beneath these pillars are 20 climate actions that we are committing to. See our climate change policy booklet.

Voting and engagement

Stewardship is central to our investment philosophy and we seek to act as a responsible and engaged owner of the companies in which we invest.

EOS at Federated Hermes is the Scheme’s primary provider of stewardship services, including voting and engagement. Where engagement is fundamental to the investment strategy and they can demonstrate sufficient capabilities, the Scheme may appoint an investment manager to undertake stewardship services for their specific mandate instead of EOS.

EOS and, where applicable, investment managers are mandated to execute all votes for the Scheme’s directly held public securities. Where relevant, proxy voting activity is undertaken as part of a wider engagement strategy.

More information on the Scheme’s approach to stewardship, together with the latest voting and engagement reports, can be found under the relevant links.

2023 EOS Engagement Plan PDF DOWNLOAD
2022 Engagement Report PDF DOWNLOAD
Q2 2023 voting disclosure PDF DOWNLOAD

Regulatory reporting

Read our annual report and accounts and other regulatory reports.

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