The Principles of Responsible Investment as a framework

The Church Pension Fund's responsible investment principles are at the core of its investment activities. As of 2008, the Pension Fund has undertaken to comply with the UN supported Principles for Responsible Investment and has built its responsible investment activities around these principles. The PRI helps the Pension Fund to carry out responsible investment activities.

As a signatory of the Principles for Responsible Investment (PRI), the Church Pension Fund has committed to the following:

1. We will incorporate ESG issues into investment analysis and decision-making processes.

• We draw up an annual responsible investment plan, investment strategy and risk management plan that includes the goals for responsible investment. In addition, in our longer-term strategies, we have made ESG aspects part of our goals. 
• A separate Climate Strategy guides our climate change work.
• All members of the Pension Fund team work on developing responsible investment activities within their own area of responsibility.
• We apply ESG criteria to our selection of and in the agreements with asset managers.
• We only work with asset managers who have committed to the Principles of Responsible Investment.

2. We will be active owners and incorporate ESG issues into our ownership policies and practices.

• The active ownership policy steer our ownership practices and engagement activities.
• We engage in continuous dialogue about responsible business activities with domestic and foreign companies.
• We participate in the annual general meetings of domestic companies.
• In European companies, we vote through an external proxy voting service provider. 
• We regularly monitor the content of our investment portfolio and any possible norm violations.
• We require our asset managers to have an active ownership policy and report on their stewardship activities. 

3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.

• We support initiatives that aim to promote coherent sustainable reporting practices of companies.
• We continuously monitor the development of the responsible investment activities of our asset managers and encourage them to report on the material ESG impacts of their investment activities.

4. We promote the acceptance and implementation of the Principles within the investment industry.

• We raise ESG issues at the request for tender phase and in annual ESG questionnaires. We provide feedback to asset managers based on responses to ESG questionnaires. In the feedback, we highlight our expectations regarding development targets related to sustainability. 
• We favour asset managers that comply with the Principles.
• We participate in the relevant seminars and hold lectures on responsible investing for other investors and students.
• We support initiatives and practices that help strengthen the pocition of responsible investment in the investment industry. 
• We keep information on responsible investments updated on our website.

5. We will work together to enhance our effectiveness in implementing the Principles.

• We actively participate in the activities of forums and networks promoting responsible investment, such as Finsif ry, and comply with the Principles.
• We collaborate with other Investors and share best practices. We encourage market participants to invest responsibly.
• We share information with the parishes and maintain regular contact with other investors within Church organisations.

6. We will report on our activities and progress toward implementing the Principles.

• We regularly report on the progress of reponsible investment to the Board of the Church Pension Fund. 
• We publish an annual report on responsible investments.
• We report on the carbon footprint of our equity and fixed-income investments accoridng to TCFD recommendations. 
• We report to PRI, on an annual basis, on the progress of the implementation of the Principles.