ESG and our investment portfolio
Environment Social and Governance (ESG) themes are increasingly important for trustees and members as awareness of how assets can be harnessed for environmental and social good has increased.
Our investment portfolio consolidates the premiums from defined benefit and individual retirement income policyholders and invests them sustainably. We consider environmental, social and governance factors in all investment analysis and decisions. This helps to ensure assets are sustainable and will generate long-term financial returns so we can meet the obligations of the policies we issue.
We were the first UK insurer to issue a Green bond and the first UK insurer to become a signatory to the United Nations Principles for Responsible Investment as an asset owner. We’re a constituent of the FTSE4Good Index Series.
Some notable ESG investments
Values are IFRS valuations at 31 December 2020. Read more about our investment portfolio and ESG.
Our approach to asset and liability management
Our investment team are responsible for asset sourcing and investment management. They ensure that cash flows from our asset portfolio are secure, sustainable and sufficient to meet the payment obligations arising from the Group’s wholesale and retail retirement income policies.
We match the longer duration liabilities with lifetime mortgage loans, infrastructure and other investments and the shorter duration liabilities with bonds and UK sovereign debt. This is a cashflow driven investment strategy.
The investments we hold are regulated by the Prudential Regulation Authority and are invested to ensure the matching of assets to liabilities whilst risks are managed. This provides security for trustees choosing to invest in a bulk annuity from Just.