Published: February 13, 2025
LGPS Central’s commitment to responsible investment is once again reinforced through our latest Voting Principles, setting a clear framework for active stewardship and long-term value creation. Our approach is rooted in our fiduciary duty to stakeholders, ensuring that the companies we invest in uphold high governance, environmental, and social standards.
Our Voting Principles are a cornerstone of our Responsible Investment and Stewardship Framework, which balances two core aims: supporting strong investment outcomes while setting an example for responsible investment across the financial sector. We achieve this through a structured three-pillar approach—Selection, Stewardship, and Transparency & Disclosure—ensuring that our engagement with investee companies translates into meaningful governance and sustainability improvements.
By holding boards accountable for long-term decision-making, we actively shape corporate practices to align with the interests of our stakeholders. Whether it is advocating for board diversity, fair executive remuneration, or credible climate transition strategies, our voting decisions serve as a catalyst for lasting change.
The real-world impact of our stewardship efforts is evident across multiple areas:
Climate and Net Zero: Our engagement drives meaningful progress on climate risk management. Companies are expected to align with the Paris Agreement, setting absolute emissions targets and disclosing their transition plans. We will hold boards accountable where progress and commitment fall short, reflecting our commitment to resilient net-zero future.
Diversity and Inclusion: We will continue to advocate for diverse and inclusive leadership, pushing for stronger representation of women and ethnic minorities in boardrooms. Where companies fail to demonstrate progress, we take action through our voting decisions.
Corporate Governance Excellence: We expect boards to be well-structured, independent, and effective in overseeing management. Our approach ensures accountability through robust audit procedures, fair remuneration practices, and transparent shareholder rights.
Our impact is further amplified through partnerships with leading stewardship organisations, including the Nature Action and Climate Action 100+, where we collaborate to drive higher market standards.
On publication of the revised voting principles, Sheila Stefani, Head of Stewardship, reflected “Active stewardship is not just about casting votes—it’s about driving real change. Our engagement ensures that companies are accountable to their investors and society at large. Our most recent report includes stricter enforcement mechanisms, increased expectations for disclosure, and enhanced alignment with net-zero commitments, LGPS Central continues to refine its governance strategy to ensure its investee companies contribute meaningfully to long-term value creation and sustainability. Through our Voting Principles, we reinforce the expectation that businesses operate in a way that delivers long-term value while considering their broader impact on people and the planet.”
Our principles reflect our deep-rooted commitment to integrating responsible ownership into investment decision-making. Through rigorous voting and engagement, we are not just mitigating risks—we are shaping a sustainable and resilient financial system that benefits all stakeholders.
As we continue to evolve our stewardship practices, our focus remains unwavering: using our influence to drive corporate responsibility, foster long-term financial stability, and ensure that our investments contribute to a more sustainable world.
You can read about our Voting Principles here.
Voting Principles
