Investments

The Fund requires that investment managers take into account non-financial factors when selecting, retaining, or realising its investments. Financial factors take priority given that the primary responsibility of the Fund is to invest the Fund's assets to meet its pension obligations. The Law Commission's review of financial and non-financial factors in investment decision making is taken into consideration.

It is recognised that Environmental, Social and Governance (ESG) factors can influence long term investment performance and the ability to achieve long term sustainable returns. The Fund considers its approach to responsible investment in two key areas:

• Sustainable investment / ESG factors - considering the financial impact of environmental, social and governance factors on its investments
• Stewardship and governance - acting as responsible and active investors/owners, through considered voting of shares, and engaging with investee company management as part of the investment process

The Fund's Investment Strategy Statement, how social, environmental or corporate governance considerations are taken into account in the selection, non-selection, retention and realisation of investments. It also describes the exercise of rights, including voting rights, attaching to investments.

The Fund has developed a corporate governance and responsible investment policy which provides details on how the approach to managing assets incorporates environmental, social and governance factors, and the Fund's role as an asset owner and creditor.