As a long term asset owner we at ReAssure, part of the Phoenix Group, act on behalf of our policyholders and shareholders to invest responsibly. We are committed to factoring Environmental, Social and Governance (ESG) matters into our investment decision making process. We will play a vital role in decarbonising the capital markets and financing the transition to a sustainable low carbon economy. ReAssure, as part of Phoenix Group, will comply with the investment philosophy and process being developed.
Our Areas of Focus
Strategy and Governance
We will work with our best-in-class asset management partners to deliver our customers and stakeholders’ expectations. We will increase investment in assets that support a sustainable world, aligned with the United Nations Sustainable Development Goals, within the shareholder and policyholder business.
In 2020 we became a signatory to the United Nations Supported Principles of Responsible Investment (‘UN PRI’). This demonstrates the Group’s commitment to including ESG factors in investment decision making and ownership. The UN PRI is the world’s leading proponent of Responsible Investment. It works to understand the investment implications of ESG factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions.
The governance for the development, implementation and monitoring of our Responsible Investment philosophy is managed by the Board Investment Committee. Our Investment Philosophy will be refreshed at least annually or more frequently if required. In order to allow a sufficient level of attention to Responsible Investment, a separate management committee to review ESG-related risks and opportunities across all portfolios is in place. This working group reports to the Investment Committee and the Group Board Sustainability Committee.
Within our website we provide further information to customers on how we incorporate ESG factors into investments processes. These can be accessed using this link
Integrated ESG Management
We will continue to review and enhance ESG integration within our investment processes. We will embed best-in-class data analytics and capability to support us in this process.
We work with a network of asset management partners, all of whom are signatures to UN PRI and UK Stewardship Code. Initial due diligence as well as ongoing monitoring is vital to ensure that assets are managed in line with the Group’s philosophy and expectations. We require all our asset management partners to implement our approach to Responsible Investment and to integrate ESG considerations into their investment processes.
We have a dedicated and experienced team to undertake asset manager assessments. We have appointed external consultants to support us with the selection and monitoring of our asset management partners’ Responsible Investment processes. We are committed to continue and deepen this work ourselves.
As part of this assessment, we issue formal requests to enable us to gather necessary information. We not only review the policies and frameworks of the asset management partners, but equally, assess the factors affecting implementation. These findings are then presented to our governance committees. Partners who fail to meet our minimum requirements will be put on notice to improve within agreed timelines or cessation or termination of mandate may occur.
Stewardship
Stewardship is a core part of responsible investing and it’s critical to how we manage the risks in your investments. It’s also how we aim to deliver sustainable value for you, as well as how we try to drive positive change in our society.
We believe that it is our responsibility to engage with the companies we invest in to drive better behaviour and influence positive change, so stewardship is an important part of our responsible investment approach.
Shareholder voting rights and engagement are the two main tools of stewardship.
- Engagement – Engagement is when we work with companies we invest in and discuss what could drive positive change and improvement within the company.
- Voting – Voting is when we approve or disapprove management and boards’ decisions or other shareholders’ proposals through the exercise of our shareholders rights.
As a customer and investor in our funds, you can’t vote directly with companies that you have exposure to. This responsibility lies with the asset managers who manage the fund. So where voting rights exist, our asset managers will vote on our members’ behalf.
We make sure that all of our asset managers have a voting policy in place and vote in line with this policy. Part of our due diligence exercise is to make sure that this policy reflects our philosophy and our approach to responsible investment.
Find out more about our approach to stewardship.
Decarbonising our investment portfolio
We are committed to decarbonising our investment portfolio and achieving net zero greenhouse gas emissions by 2050. To do this we will actively engage with decarbonisation alliances, initiatives and policy makers. In addition, we will enhance our internal capability by acquiring and developing tools to perform portfolio analysis using best in class metrics, taking into account both physical and transitional risks.
This is consistent with the objective of limiting the temperature rise to no more than 1.5°C above pre-industrial temperatures and is in line with the Paris Agreement and the commitment of the UK Government.
We recognise that there are many considerations in delivering this target and our immediate focus is on our equity and liquid credit portfolios.
For more information on how we Foster Responsible Investing please see link to Phoenix Group Sustainability Report here
Our remuneration policy
Sustainability is at the heart of our business as a key strategic priority. We align our performance goals to our Phoenix one team goals. Our targets are closely aligned to these goals of being a customer obsessed, purpose led organisation led by a diverse and talented workforce all connected by common values.
A reward framework, remuneration policy and best practice is established and regularly reviewed by the Remuneration Committee against a board approved terms of reference. Remuneration must be competitive enough to motivate, retain and attract quality staff.
Our Annual Incentive Plan performance measures are based on the achievement of strategic (including sustainability), personal and business performance goals. Long term Incentive Plans are also offered to business and executive leadership over a 3-5 year outlook. This helps us to be the “best place our colleagues have ever worked” which is core to achieving our sustainability aspirations.
