Sustainable ownership

What is sustainable ownership?

Sustainable ownership describes how we consider financially-relevant sustainability and governance ssues in our investment decisions, monitor wider risks, use our voting rights and engage with companies we invest in. This helps support the long-term financial outcomes that underpin members' pensions.

Video: Why we invest sustainably

Watch this short video to find out why we take a responsible approach to the way we invest members' money and what this means for them.

We use a range of tools to encourage companies to address governance and sustainability issues that could affect their long-term performance. This includes engaging directly with companies, as well as policymakers and regulators on wider risks that can affect investments. We believe understanding and managing these issues can help protect the long-term value of members’ investments.

We talk to companies about the environmental, social and governance (ESG) topics that are specific to them, but also focus on major ESG issues that affect either all or many of the companies we invest in. Collaboration with other investors, including other pension funds, is central to our approach to ensure our work is as effective as possible.

We apply sustainable ownership principles to all our investments, whether in:

companies listed on a stock exchange, or ‘listed equities’
infrastructure assets, such as energy or telecoms, or;
private debt - lending money to companies that aren’t listed on a stock exchange

Sustainable ownership looks at environmental, social and governance (ESG) issues, such as:

fair treatment of workers
climate change
fair pay, including executive pay

Why does it matter to members?

You, and your employer both pay contributions while you’re an active member of the railways pension schemes. These contributions are then invested in different ways, including in companies and brands you care about. We do this to achieve the investment returns needed to give you an income in retirement.

We believe in investing pension contributions in companies that are well-run, and that seek to address all the risks and opportunities related to how their business works, including environmental, social and governance (ESG) issues. This is because evidence shows that well-run, responsible companies thrive and perform better in the long run.

Railpen's role as an industry leader

As the manager of one of the UK’s largest pension schemes, we take our responsibilities seriously and work hard to lead the industry on sustainable ownership.

The scale of our assets allows Railpen to benefit from an expert in-house Sustainable Ownership team, which works closely with others across Railpen. This team is dedicated to undertaking sustainable ownership in a way that positively impacts the value of your savings and income in retirement.

Our sustainable ownership work has been recognised by industry peers, with awards including:

2025 RAAI Leaders List: Top 30 Responsible Asset Allocators globally
2025 International Corporate Governance Network (ICGN) Awards: Excellence in Corporate Governance
2025 Professional Pension UK Pensions Awards and IPE Transition Awards: Environment, Social and Governance (ESG)
2025 Manager of the Year, Private Markets Investment, and Leadership in Energy Transition & Net Zero Awards
2025 IPE European Pension Fund Awards:

- Carbon and Net Zero Strategies
- ESG Strategy
- Alternatives – highly commended
- Regional, UK – highly commended

2024 ICGN Stewardship Disclosure Award (asset owners < $60bn AUM)
2024 Actum Group Value Creation LP ESG Award
2023 Clearpath ESG Investment Innovation of the Year Award
2023 Financial News Most Influential in Sustainable Finance in Europe – Caroline Escott, Senior Investment Manager
2023 Financial News Rising Stars of Fund Management – Sophie Harris, Senior Investment Analyst
2023 Simon Fraser Stewardship Award – Michael Marshall, Director of Investment Risk and Sustainable Ownership
2023 Simon Fraser Investment Innovation Award

It all helps protect your financial future

We believe investing like this is the best way to protect, and enhance your savings.

You can let us know what you think about sustainable ownership anytime, by emailing so@railpen.com.

Check in on recent progress

Read our latest Sustainable Ownership Member review to see how Railpen has acted on behalf of members and incorporated sustainability and governance considerations into investment decisions over the past year.

Download the report

The information provided on this website is intended for general information and illustrative purposes. Your benefits will be worked out in accordance with and subject to the governing trust deed and rules and relevant legislation.

Although every effort has been made to ensure the information given on this website is accurate, none of the information provided can give you, or your beneficiaries, legal rights to benefits that differ from those provided in the pension trust and rules.

We recommend that you get independent financial or specialist advice before making any important decisions about your pension arrangements

Read more about the sustainable ownership issues we’re focusing on...

Fair pay

How we work with the companies we invest in to ensure they are rewarding their employees fairly.

Climate change

How we encourage the companies we invest in to take responsibility for reducing their impact on the climate.

A foreman stands in front of several wind turbines

Governance

How we work with companies to make sure they run their businesses well, with good practices and accountability in place.

Fair treatment of workers

How we encourage the companies we invest in to treat their members of staff fairly.

Responsible Technology

How we work with companies to make sure they are prepared to face any new risks they may be exposed to as they integrate digital technologies into their operations.

Sustainable Ownership blogs

Our blogs on Sustainable Ownership and environmental, social and governance (ESG) issues will help you learn more about the Scheme's approach to its investments.

Investments glossary

Here's a handy list defining some of the different terms used when talking about investments.

Our approach to investing

Railpen focuses on the needs of you, as a member, and the Scheme, as part of the overall investment approach and beliefs.

Railways Pensions is powered by Railpen Limited
© Railpen Limited 2010-2026. Registered Office: 7 Devonshire Square, London, EC2M 4YH
Each of Railpen Limited (registered in England and Wales No. 2315380) and Railway Pension Investments Limited (RPIL) (Registered in England and Wales No. 1491097) is a wholly owned subsidiary of Railways Pension Trustee Company Limited (Registered in England and Wales No. 2934539). Registered office for each company: 7 Devonshire Square, London, EC2M 4YH. RPIL is authorised and regulated by the Financial Conduct Authority for some of its activities. The administration of occupational pension schemes is not a regulated activity. Full details about the extent of RPIL's authorisation and regulation by the Financial Conduct Authority are available from us on request.