The Co-op Group’s defined contribution pension scheme, known as Pace DC, has a defined responsible investment policy which its trustee reviews annually.
- Environmental factors: climate change and its impact on the environment
- Social factors: labour rights, human rights, and community engagement
- Governance factors: board composition, executive remuneration, and audit practices
The organisation operates across multiple sectors, including food retail, funerals, insurance, and legal services. With 2,300 food stores and 800 funeral homes, it also supplies products to 6,000 other outlets and employs 55,000 employees.
| Sector | Outlets | Employees |
|---|---|---|
| Food Retail | 2,300 stores | 40,000 employees |
| Funerals | 800 homes | 10,000 employees |
| Insurance | N/A | N/A |
| Legal Services | N/A | N/A |
The organisation’s policy details ESG factors, which are reviewed annually by its trustee. The policy also specifies the ESG factors that are considered, including climate change, strategic investment, and decision-making process.
““We have a responsibility to our members, our customers, and the wider community to ensure that their contributions are invested in a manner consistent with responsible investment principles.”
— Gary Dewin, People and Pensions Director at Co-op
“The Future World Multi-Asset Fund employs a strategy that tilts investments towards organisations with higher ESG scores and excludes those that fail to meet specific criteria,” explains Dewin. ”This approach ensures that members’ contributions are invested in a manner consistent with responsible investment principles. The Pace Growth Shares 2021 Fund takes into account the environmental and social behaviours of businesses they invest in, as well as how well they are governed and run, when deciding how much to invest in different organisations.”
“The Pace Growth Ethical Shares Fund and the Pace Growth Shariah Fund are designed to cater to members who wish to take account of ethical issues or personal religious beliefs in their investments,” adds Dewin. “These funds are not only aligned with our organisation’s values but also provide an additional choice for members who want to make a positive impact with their investments.”
Co-op’s responsible investment strategy was designed to align with its ethical principles by incorporating ESG criteria into the investment decision process.
