Active ownership is essential to fulfilling the UNJSPF’s fiduciary duty and a key component of our Responsible Investment strategy. As part of the strategy’s stewardship pillar, the Fund exercises the voting rights attached to its holdings to better manage environmental, social and governance (ESG) risks, promote sustainable corporate behavior and advance the values of the United Nations.  

The Fund uses a proxy voting service, Institutional Shareholder Services (ISS), to vote on its behalf, and reports annually on this activity. Our newest report of proxy voting highlights is now published on the UNJSPF website.  

“It is our responsibility to do all we can to ensure that the assets we own align with our long-term financial sustainability, and proxy voting is a crucial aspect of this active ownership,” said Chief Investment Officer and Acting Representative of the Secretary-General, Toru Shindo.  

To align ISS voting with the Fund’s long-term objectives, including its climate strategy and sustainability commitments, we have developed a customised policy. This enables the UNJSPF to take consistent voting positions on issues such as climate accountability, board oversight, shareholder rights, biodiversity and social equity. A focus list of high-priority companies is reviewed by the UNJSPF, with votes at these entities subject to enhanced internal scrutiny and case-by-case analysis by the Responsible Investment and Investment teams. 

As the latest report shows, the UNJSPF voted in 100 per cent of votable meetings, including on proposals from both management and shareholders across a range of issues. These votes aligned with management recommendations in 80 per cent of cases, compared to the ISS benchmark policy’s alignment of 92 per cent. 

The Fund’s stewardship guidelines reflect our beliefs in what drives sustainable, long-term growth. These beliefs include:  

• Corporate boards should be comprised of mostly independent directors and be diverse with an appropriate balance of skills, expertise and tenure 
• Executive pay packages should maintain appropriate pay-for-performance alignment 
• Disclosure reports should address shareholders’ social, workforce and environmental concerns 

Learn more about the UNJSPF’s Responsible Investment strategy here.