The Trustees of all BAE Systems pension schemes have to make certain information available to members via a publicly accessible website.
Statement of Investment Principles
A Statement of Investment Principles (SIP) is a written statement which sets out the investment policy for a pension scheme as required by Section 35 of the Pensions Act 1995. The SIPs for the BAE Systems pension schemes can be found below.
Implementation Statement
An Implementation Statement (IS) sets out how trustees have complied with their scheme's Stewardship and Engagement Policy over the year. An IS needs to be prepared in accordance with the requirements of the Occupational Pension Schemes (Investment and Disclosure) (Amendment) Regulations 2019. The Implementation Statements for BAE Systems pension schemes can be found below.
Climate-related Financial Disclosures
In 2015, an international treaty on climate change known as the Paris Agreement was signed by 196 countries. The long-term goal of the Agreement is to limit temperature increases to well below 2°C – ideally below 1.5°C. It is widely accepted that doing so will limit damage to ecosystems and human health and wellbeing. To achieve this, the global economy will need to undergo a complete transformation to drastically reduce emissions. This transformation of the economy is expected to create risks and opportunities for companies, and therefore for investors who finance them Investment risks and opportunities are also expected to be created by the physical effects of climate change, for example as a result of the increased frequency of extreme weather events and warmer temperatures. It is now widely believed that such factors should be considered by investors in their decision-making. This includes pension scheme trustees, who should consider how these risks might affect the assets, liabilities, and employer covenant of their schemes.
The Department for Work and Pensions has provided recommendations for UK pension scheme trustees for integrating the Task Force on Climate-related Financial Disclosures (TCFD) framework into their investment and governance processes. The TCFD report covers how all four elements of the TCFD framework – Governance, Strategy, Risk Management and Metrics and Targets – have been applied to a scheme.
The trustees of schemes with relevant assets of more than £1bn must publish their TCFD Report on a publicly available website within seven months of the end of the scheme year. Copies of the latest TCFD reports for the BAE Systems Pension Scheme and the Royal Ordnance Pension Scheme can be found below.