Corporate Governance and Socially Responsible Investment
This area of the website provides information on the Management Trustees' approach to two key aspects of investment, Corporate Governance and Socially Responsible Investment (SRI). On this page we explain the Management Trustees' overall approach and the instructions that they give to British Airways Pension Investment Management Ltd (BAPIML), the Schemes' Fund managers. Links are also provided to a report from the BAPIML CEO on how the Management Trustees' policies are implemented, together with annual reports on activity in UK and international Corporate Governance and SRI, details of voting records for the year ended 31 March 2009 and a list of the Schemes' 100 largest equity investments.
Corporate Governance
BAPIML has been instructed by the Management Trustees to exercise voting and other rights attaching to the Schemes' investments at meetings of UK and overseas listed companies wherever practicable. Where relevant rights are exercised, this will be based on the framework formulated by the National Association of Pension Funds.
The Management Trustees have also agreed to adopt the Financial Reporting Council's Stewardship Code. BAPIML's statement regarding the Application of the Stewardship Code, which you can view here: BAPIML's statement regarding the Application of the Stewardship Code.
The primary objective of these Corporate Governance arrangements is to protect the economic interests of the Schemes. Details of the exercise of voting rights are reported to the Management Trustees at least quarterly and a summary of this information along with data summarising the Schemes' larger investments will be made available on the member website each year, along with a list of the Scheme's 100 largest equity holdings.
Socially Responsible Investment
The Management Trustees' overriding objective is not to cause BAPIML to take any action (whether by purchasing, holding or selling any investment) which could be reasonably expected to diminish the financial returns on the Schemes' investments as a whole.
Subject to this objective, the Management Trustees require BAPIML to incorporate as part of its investment process a systematic approach to the maintenance of ongoing dialogue with the management of those companies in which it retains, or proposes to make, significant equity investments and, where appropriate, other forms of investment. The specific purpose of such dialogue - called 'responsibility discussion overlay' , or RDO - is to establish a framework within which BAPIML may, on behalf of the Management Trustees, raise issues concerning the social, environmental or ethical aspects of the operations of the investee company. BAPIML has been requested to report to the Management Trustees once in each calendar year on its activities under RDO and the Management Trustees use this report as a focus for issuing further guidance to BAPIML (in consultation with British Airways plc where appropriate) if required.
Latest Documents
Report from the BAPIML CEO on implementation of Corporate Governance and SRI policy for the year ended 31 March 2011
BAPIML report on Corporate Governance for UK investments for the year ended 31 March 2011
BAPIML report on Corporate Governance for international investments for the year ended 31 March 2011
BAPIML report on Socially Responsible Investment for the year ended 31 March 2011
Voting Record for UK investments for the year ended 31 March 2011
Voting Record for international investments for the year ended 31 March 2011
List of 100 largest APS investments at 31 March 2011
List of 100 largest NAPS investments at 31 March 2011