Long-term value is most reliably generated by companies led with a clear sense of purpose that guides their strategy and informs their values.
The article by Paul Polman, the former chief executive of Unilever (“Critics of ‘woke’ capitalism are wrong”, Opinion, January 25), makes this point but also describes how the commitments of businesses to pursue purpose, better manage carbon risks and engage constructively with stakeholders are increasingly decried as somehow endangering long-term value creation. We wish unanimously to reassert that our experience, and the evidence, show the opposite.
Collectively we are responsible for more than £675bn of assets ultimately owned by beneficiaries to whom pension funds have a fiduciary obligation to secure the best long-term financial return.
We believe that the growing emphasis being placed by companies on sustainability, and the drive to net zero, needs to intensify. Moreover, it is only by honestly engaging with the full range of stakeholders — including consumers, employees and shareholders — that value can be sustained over the long run. To the extent there are difficult decisions and trade-offs, they need to be explicit, open and explained to stakeholders.
These are the building blocks of stakeholder capitalism. It is not woke. Rather, it is a powerful form of capitalism that unleashes mutually beneficial relationships to create long-term value.
Our interest as asset owners must focus on what is financially material. We also recognise that what is financially material will change over time and companies are right to guard against that, clearly alerting us to what they are doing to secure corporate performance over the long term. It is this dialogue that enables us as asset owners to share the same approach as the businesses in which we invest.
Faith Ward
Chief Responsible Investment Officer
Brunel Pension Partnership
Morten Nilsson
Chief Executive
BT Pension Scheme Management
Craig Thornton
Chief Investment Officer, Scottish Widows
Helen Dean
Chief Executive, Nest
Simon Pilcher
Chief Executive
USS Investment Management
Mark Walker
Chief Investment Officer
Coal Pension Trustees Investment
Rachel Elwell
Chief Executive Officer
Border to Coast Pensions Partnership
Gordon Ross
Chief Investment Officer
LGPS Central
Brian Bussell
Chair, Aviva Staff Pension Trustee
and Chair, Friends Provident Pension Scheme Trustees
Craig Martin
Chief Pensions Officer
Environment Agency Pension Fund
David Vallery
Chief Executive
Lothian Pension Fund
Cllr Gerald P Cooney
Northern LGPS
David Murphy
Chief Executive
Northern Ireland Local Government Officers’ Superannuation Committee
Mike Hampton
Chair
RAC Pension Trustees
Adam Matthews
Chief Responsible Investment Officer
Church of England Pension Board
John Chilman
Chief Executive
Railpen
Richard Tomlinson
Chief Investment Officer
Local Pensions Partnership Investments
Rachel Brothwood
Director of Pensions
West Midlands Pension Fund
