Rising global consumption, natural resource depletion and climate change mean that sustainability is an increasingly material investment issue and of growing importance to our customers. SWIP signed the UN Principles for Responsible Investment (PRI) in 2008, and is committed to playing its part in addressing the challenge of sustainability. This includes the following:
- SWIP has a £8.44bn* property portfolio, with over 2000 investment assets, including office, retail and warehouse properties.
- In 2010, SWIP launched a new sustainability strategy across its property portfolio. This includes improving the energy efficiency of its properties and targets to reduce landlord-controlled energy use by 2012, against a 2009 baseline. In addition, SWIP has implemented a portfolio-wide programme to meet the requirements of the CRC Energy Efficiency Scheme on behalf of its clients.
- SWIP recognises that long-term shareholder value can be impacted by companies’ approaches to corporate governance and sustainability. With £37.5 billion** invested in UK companies**, SWIP is committed to using its influence to encourage best practice in corporate governance and the management of sustainability risks. SWIP has significantly grown its capability to do this in 2010, adding three new employees to its Governance and Sustainability team.
- In accordance with our corporate governance policy, SWIP engages with companies and votes globally to encourage corporate governance structures that protect and enhance shareholder value and align the interests of directors and shareholders. SWIP’s dialogue with companies draws on the combined expertise of fund management and corporate governance teams. It includes discussion of the Board (structure, composition, succession planning, and evaluation), strategy, performance, capital raising, remuneration, regulation and corporate activity. SWIP also contributes to the evolution of best practice in corporate governance through its participation in industry bodies.
- SWIP’s shareholder engagement on sustainability issues is focused on climate change. According to Carbon Disclosure Project (CDP) data, the UK companies in which SWIP invests are responsible for well over 500 million tonnes CO2e (nearly the same size as the UK’s total emissions). The number is several times larger if product and supply chain emissions are included. As a large UK shareholder, SWIP will monitor and support progress by these companies in improving the energy and resource efficiency of their business activities. SWIP was the first signatory of the Carbon Disclosure Project’s new Carbon Action initiative and is playing a lead role in developing new global initiatives in this area, working with the UN PRI Clearinghouse, FTSE, and the Institutional Investors Group on Climate Change.
SWIP manages a series of specialist ethical and environmental funds – totalling approximately £470 million***. In the future, SWIP sees a substantial opportunity to increase focus on the companies that are driving the technological solutions to global sustainability problems – renewable energy, energy efficiency, water supply and food supply. Given the scale of the transformation required to move to a more sustainable global economy, SWIP’s work to understand these sustainability themes is not limited to its specialist funds, but will inform SWIP’s investment decision-making across all of its portfolios.
*Source: SWIP 31.12.2011
**Source: SWIP 30.06.2011
***Source: SWIP 30.06.2011
