Border to Coast Pensions Partnership Limited’s Joint Committee, in its meeting on July 9, 2025, recently published minutes detailing future investment intentions and strategic considerations.
New Asset Class Considerations
The Border to Coast Pensions Partnership Limited plans to launch a Green, Social, and Sustainability (“GSS”) Bonds Sub-fund in Q2 2026. This decision follows internal discussions and consultations with Partner Funds. The new fund will be subject to long-term performance monitoring and regular oversight, with performance reports provided to members. Officers have been delegated authority to review the contractual documentation required for the sub-fund’s launch. (Minutes of the Border to Coast Joint Committee, July 9, 2025, page 11)
Strategic Review of Equity Propositions
A working group has been established to consider the evolution of equity propositions, encompassing both those managed directly by Border to Coast and those managed by third parties. The objective is to enable Border to Coast to advise Partner Funds and implement strategies aligned with their investment beliefs. (Minutes of the Border to Coast Joint Committee, July 9, 2025, page 10-11)
Responsible Investment Policy Updates
Border to Coast is undertaking its annual review of the Responsible Investment Policy, Corporate Governance & Voting Guidelines, and Climate Change Policy. Key proposed updates include lowering the thermal coal power generation revenue exclusion threshold from 50% to 25% in developed markets and from 70% to 50% in emerging markets, which would bring 32 additional issuers into scope for exclusion based on August 2025 data. The review also aims to clarify the approach to engagement, strengthen the narrative on the relationship between engagement and divestment, and introduce a voting policy targeting nature-related risk priority companies using the World Benchmarking Alliance Nature Benchmark. These proposed changes have been shared with the Investment Committee and Officers of Partner Funds, with further consultation planned before presentation to the Board for approval in November. (Responsible Investment update, September 24, 2025, page 22)
Engagement Strategy Review Underway
The three-year Engagement Strategy for 2026-29 is currently under review. This strategy will define engagement, outline the approach (direct, via external managers, Robeco, and collaborations), and identify priority environmental and social engagement themes for the next three years, in addition to ongoing climate and governance engagement. The draft strategy includes a shortlist of three environmental and three social themes for consultation, from which one theme from each category will be selected. Feedback has been received from the Investment Team and shared at the RI OOG meeting on September 8, with further input sought at the Annual Conference on September 25. Two recommended themes will then be brought for approval along with the broader Engagement Strategy. (Responsible Investment update, September 24, 2025, page 21)
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