Institutional investors overseeing £150bn launch good governance campaign

A coalition of institutional investors, managing £150bn in total assets, has launched a campaign aiming to place good corporate governance at the heart of the UK’s economic growth strategy.

The Governance for Growth Investor Campaign (GGIC) seeks to ensure that pension funds have a formal voice in shaping capital market policies. Members of the GGIC include Brunel Pension Partnership, the Church of England Pensions Board, People’s Pension, Brightwell and Railpen.

In a statement, the GGIC said that good governance allows pension funds to act as effective stewards of their assets, positively influence corporate behaviour for the better, and deliver beneficial outcomes for savers.

The GGIC argues that sustainable growth requires good governance, and that UK pension schemes need to be empowered to help companies grow within private and public markets frameworks that support efficient and effective long-term value creation.

Caroline Escott, head of investment stewardship and co-head of sustainable ownership at Railpen, said: “Today’s launch comes at a vital moment for the UK’s capital markets and economy. Over a year on from the general election, this government is making welcome headway on its reform agenda, providing the stable policy platform needed on issues including pensions, financial services, planning and industrial development to overcome the country’s economic challenges and kickstart growth.”

While the campaign will focus on longer-term, strategic relationship-building and awareness-raising with political and policy decision-makers around these pillars, in the immediate term, the group will focus engagement on the Draft Audit Reform and Corporate Governance Bill.

Faith Ward, chief responsible investment officer at Brunel Pension Partnership, said: “We believe good governance and an enabling environment for investors to ensure long-term value creation are paramount to meeting the objective of growth in the UK. We are committed to supporting policymakers and regulators in achieving a thriving UK economy.”

Furthermore, the group added that the saver-focused campaign calls on policymakers to empower pension funds with a seat at the policy table, take action to avoid artificial cliff-edges across private and public markets, provide investors with the shareholder tools needed to help companies grow, and work with schemes to champion the benefits of the UK’s capital markets to prospective investors in the UK.

The campaign comes after the publication of the Financial Services Growth and Competitiveness Strategy last week, with the group adding that it plans to work with the UK government on a governance-focused approach that aligns with its growth mission.

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