This area of the website provides information on the Trustee's approach to two key aspects of investment, Corporate Governance and Socially Responsible Investment (SRI). On this page we explain the Trustee's overall approach and the instructions that it gives to British Airways Pension Investment Management Ltd (BAPIML), the Scheme's Fund managers. Links are also provided to a report from the BAPIML CEO on how the Trustee's policies are implemented, together with annual reports on activity in UK and international Corporate Governance and SRI, details of voting records for the year and a list of the Scheme's 100 largest equity investments.
BAPIML has been instructed by the Trustee to exercise voting and other rights attaching to the Scheme's 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 Trustee has also adopted the Financial Reporting Council's Stewardship Code. You can view BAPIML's statement regarding the Application of the Stewardship Code: BAPIML's revised statement regarding the Application of the Stewardship Code.
The primary objective of these Corporate Governance arrangements is to protect the economic interests of the Scheme. Details of the exercise of voting rights are reported to the Trustee at least quarterly and a summary of this information along with data summarising the Scheme's 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 overriding objective of the Trustee 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 Scheme's investments as a whole.
Subject to this objective, the Trustee requires 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 Trustee, raise issues concerning the social, environmental or ethical aspects of the operations of the investee company. BAPIML has been requested to report to the Trustee once in each calendar year on its activities under RDO and the Trustee use this report as a focus for issuing further guidance to BAPIML (in consultation with British Airways plc. where appropriate) if required.