Best Practices for LDI Managers in Climate Policy Advocacy

This guide outlines best practices for UK policy advocacy on climate change specifically for Liability Driven Investment (LDI) managers. It emphasizes the importance of systemic stewardship in addressing climate change as a significant investment risk. The document details the role of investment market participants, including asset owners and managers, in promoting systemic change through policy advocacy. It provides a framework for LDI managers to develop clear policy views on climate change, establish a strategic approach for engagement, and implement a robust governance framework. The guide also discusses the need for consistency in climate policy positions and the importance of monitoring progress in climate engagement activities. Additionally, it highlights the necessity for appropriate resourcing and transparency in disclosing engagement activities and outcomes. The principles outlined aim to assist LDI managers in aligning their climate advocacy efforts with their fiduciary duties and the expectations of asset owners.