Investor signatory Border to Coast highlights how WDI is not only informing their own analysis and stewardship, but is also driving wider change.
Border to Coast Pensions Partnership is one of the largest pension pools in the UK, managing investments for eleven Local Government Pensions Funds with over £60 billion in collective assets. Together, these Funds are responsible for the pensions of over 1.1 million workers with more than 3,000 employers.
Guided by their belief that environmental, social and governance (ESG) factors can have a material impact on financial assets, and on the long-term performance of investment portfolios, Border to Coast has a strong focus on responsible investment and active stewardship. They have been a WDI investor signatory since 2021.
The need for social data
Border to Coast Stewardship Manager Colin Baines outlines why the company is an active member of WDI, describing how social risks and opportunities are not as well understood or well integrated into investment management as other ESG themes.
“There is a lack of consistent and comparable data across a broad range of social issues, with many more measures and indicators to consider than, for example, climate change,” Colin explains. “As a result, there are more challenges in getting a comprehensive picture, assessing social risk, and identifying leaders and laggards on workforce management amongst sector peers.”
Immediate benefits
Colin highlights how Border to Coast’s membership of WDI gives them access to meaningful, comparable data that informs their analysis. “Through its annual survey and engagement programme, WDI generates quality data on workforce practices,” Colin explains.
This data, which covers indicators ranging from wages and working conditions to human rights issues in supply chains, is particularly relevant to the company’s key engagement theme of ‘social inclusion through labour management.’
A signal for change
But alongside the immediate benefits of WDI membership, Colin also underlines the wider role the initiative is playing in driving positive change.
“Scores of large companies across global markets and sectors are now regularly disclosing a range of meaningful workforce information,” Colin says. “The WDI is sending a clear signal to global companies that many investors wish to see improved and consistent workforce disclosure to better assess and manage social risks.”
