Joe Dabrowski, Head of Governance and Investment, Pensions and Lifetime Savings Association, said:
“The vast majority of pension schemes agree that the composition, stability, skills and engagement levels of a company’s workforce are an integral part of their long-term performance. As long-term investors with £2.2 trn of assets under management1 UK pension schemes are acutely interested in how the companies they invest in perform against these criteria.
“It is important to remember that pension fund members are not just invested in companies through their pension saving - they are also workers in those businesses. So the workforce cultures they experience day-to-day are influenced by how pension funds steward their investments.
“As a matter of simple corporate governance, pension funds would expect the companies they invest in to comply with their basic legal requirements, and will look very sceptically on those that fail to do so.
“Our analysis, and toolkit for workforce reporting, notes the importance of these issues to pension funds. It also highlights the importance of providing metrics alongside a narrative explanation that sets out how businesses’ employment practices relate to their long-term organisational strategy and purpose.
“Our ‘Hidden Talent’ report into the FTSE100, produced with Lancaster University Management School, highlights many areas alongside gender reporting for improved disclosure.”
The PLSA has published a number of reports in the area of diversity including Hidden talent: what do companies’ annual reports tell us about their workers? An analysis of the FTSE 100 (published November 2017) and Understanding the worth of the workforce: a stewardship toolkit for pension funds (published July 2016).
