Standex UK Retirement Plan
Climate Impact & Sustainability Data (2020, 2021-06-01 to 2021-05-31)
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Environmental, Social, and Governance (ESG) factors
- Climate change
- Stewardship
Climate Goals & Targets
Long-term Goals:
- To aim to have 100% of assets invested in assets that provide a low level of investment risk relative to the Plan’s liabilities, before all members have reached retirement
Short-term Goals:
- To target a 50% chance of being 100% funded on the self-sufficiency (gilts + 0.5% p.a.) basis by 2023
Environmental Challenges
- Mismatch between the Plan’s assets and its liabilities and the Sponsor’s ability to support this mismatch risk
- Market risks (inflation, currency, credit, equity, property, liquidity)
- Investment Manager risk
- Pension Conversion risk
- ESG risk
- Valuation Risk
Mitigation Strategies
- Investment in asset classes with low investment risk relative to the Plan’s liabilities
- Diversification of assets by asset class, region, and investment manager
- Quarterly monitoring of managers’ performance
- Delegation of selection, monitoring, and replacing of investment managers to Mercer
- Lifestyle strategy to reduce mismatch between investments and benefit access
- Delegation of ESG risk management to investment managers
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2021-06-01 to 2021-05-31
Environmental Metrics
ESG Focus Areas
- Climate Change
- Environmental, Social and Governance (ESG)
Climate Goals & Targets
Environmental Challenges
- Challenges in assessing portfolio turnover costs due to lack of industry benchmarks, curious results from the methodology (including negative transaction costs), and overlap with reported investment returns.
Mitigation Strategies
- Annual Value for Members (VfM) report includes portfolio transaction costs calculated using the 'slippage cost methodology'.