Collaborative engagement - working better, together

We believe there’s power in collaboration.

While our asset managers often engage with companies individually, we understand that sometimes, it’s better to work together with others to achieve a common goal. Our main asset management partner, Royal London Asset Management, will collaborate with other shareholders on our behalf to change the systems, expectations and rules that influence company behaviour.

Royal London Asset Management evaluates the benefits of collaborative engagement on a case-by case basis, and will favour working with other shareholders when:

  • A company hasn’t responded to one-on-one engagement, or its response hasn't been satisfactory
  • The situation is serious enough that moving to a collective meeting is appropriate
  • Partnering with others would lead to greater access to management or the board, or provide it with a greater chance to influence
  • Working with local partners could improve engagement efforts through their physical presence and/or understanding of local practices

Advocacy and public policy

We also ask Royal London Asset Management to work with regulators, governments, standard setters and non-governmental organisations to advance good governance and responsible investment on our behalf.

This includes responding to consultation requests and surveys, and meeting with regulators to express concerns or support for policies and practices relating to good governance.

Most of Royal London Asset Management's public policy work is focused in the UK, as this is where most of our customers' money is invested. But it may undertake advocacy in other markets if it's material to our investments or important for our customers.

Who does Royal London Asset Management collaborate with?

Royal London Asset Management commits time and expertise to advise trade associations and bodies which advocate good stewardship practices. These include:

Here are some examples of Royal London Asset Management's advocacy and public policy work:

Climate Financial Risk Forum

Royal London Asset Management was selected to be part of the Climate Financial Risk Forum (CFRF), an industry forum chaired by the FCA and the Prudential Regulation Authority (PRA), and participate in the CFRF’s Transition to Net Zero Working Group. As part of this participation it is co-leading a sub-working group focused on defining credible climate transition plans. 

FRC advisory group

Royal London Asset Management are members of the FRC advisory group for the future of corporate reporting, and have collaborated with the FRC on things such as climate risk in financial services and stewardship code consultation.

Climate Action 100+ (CA100+) and Institutional Investor Group for Climate Change (IIGCC)

Royal London Asset Management is a signatory of the CA100+, and its European branch, the Institutional Investor Group for Climate Change (IIGCC). CA100+ has over 700 investors, responsible for $68 trillion in assets under management. This initiative aims to encourage the world's largest corporate greenhouse gas emitters to take necessary action on climate change.

Royal London Asset Management is an active member of the IIGCC. They co-lead the engagement with European utilities providers, and are also a working group member in the Portfolio Alignment Investment Initiative (PAII), which looks at how investors can align their portfolios with the goals of the Paris Agreement.

Just transition

Just transition was a request in the Paris Agreement signed in 2015. It represents an effort to move to a low carbon economy in a way that’s sustainable, and doesn’t create a skills gap for those who are directly or indirectly employed in the traditional fuel sector. In 2019, Royal London Asset Management signed the ‘Statement of Investor Commitment to Support a Just Transition on Climate Change’, a statement endorsed by 143 investors representing $9.1 trillion USD in AUM.

In 2022, Royal London Asset Management focused our just transition engagements on three sectors: energy utilities, social housing and banks.

To find out more about individual engagement with companies, read our case studies.