Railpen, the UK’s rail workers’ pension fund with £34bn (€40.5bn) in total assets, will step up opposition to companies that lobby against shareholder rights next year, drawing one of the clearest lines yet from a major UK asset owner on capital markets policy advocacy.
Unveiling its 2026 Global Voting Policy, Railpen said it will “more closely scrutinise and engage with portfolio companies whose capital markets policy advocacy runs counter to the interests of its shareholders”.
The move targets firms seen as playing a “material role in efforts to weaken shareholder rights […] such as through advocacy for policies that reduce investor protections or where they have taken actions designed to diminish the voice of its shareholder base”.
Railpen also signalled tougher scrutiny of loyalty share structures that concentrate voting power among insiders, warning that such mechanisms can undermine long-term value creation.
The policy builds on Railpen’s four governance pillars – corporate culture and purpose, board effectiveness, remuneration, and shareholder rights – and expands the scheme’s expectations on emerging governance and sustainability risks, including climate accounting and responsible technology.
Railpen, an early mover on climate accounting, also sharpened its expectations for 2026. It is seeking clearer disclosure of quantitative climate-related assumptions and transparency on how critical accounting judgements reflect material climate risks.
“We have a responsibility to our members to ensure that our long-term investments remain resilient in the face of systemic risks such as climate change,” said Adam Gillett, head of sustainable investment and co-head of sustainable ownership.
He added that greater clarification should help companies “understand our perspective and ensure we can continue to work in partnership to help secure our members’ future”.
The fund has extended its stewardship focus to AI and cyber governance, asking companies for disclosure proportionate to their AI exposure and clearer reporting of cyber risk oversight, controls, and any material breaches.
Workforce engagement also remains a priority. Railpen said it will continue pushing for meaningful board-level worker voice in the UK and US, building on its Workforce Directors Coalition. Where companies remain unresponsive, it may escalate through voting.
Caroline Escott, head of investment stewardship and co-head of sustainable ownership, warned: “This year we have seen further moves in various jurisdictions to roll back corporate governance standards and dilute sensible shareholder engagement mechanisms.
“Such decisions are damaging to the long-term sustainable economic growth that benefits companies, shareholders and the savers on whose behalf we invest.”
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