LCP’s fifth stewardship report: an update on our responsible investment and stewardship activities
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To maintain LCP’s status as a signatory to the UK Stewardship Code, we prepare a report each year, setting out what we have done to meet the expectations of service providers like us.
We recently submitted our fifth report to the Financial Reporting Council (FRC), covering the year to 31 March 2025, and expect to hear the outcome during the first quarter of 2026.
We structure the report in a way that reflects how LCP approaches responsible investment (RI) and stewardship. It provides an overview of our work in this area, as well as updating readers on specific activities and achievements over the year.
In the 2020 UK Stewardship Code, the FRC defines stewardship as “the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, environment and society”. As an investment consultant, we support and advise asset owners on their responsible allocation, management and oversight of capital.
Highlights of the year to 31 March 2025
Launched our 2024 RI survey of investment managers, focussing on ESG foundations, climate change, stewardship and systemic stewardship.
Released the results of our first LDI managers’ climate policy advocacy review and provided feedback to drive improvements.
Worked with an LGPS fund to develop an engagement framework for use with fossil fuel companies.
Prepared for the launch of an investment offering to provide asset owners access to the global energy transition market, bringing together the expertise of our investment department and LCP Delta.
Launched LCP Influence, our delegated stewardship service.
By the end of the year, 58 asset owners representing £187bn in assets had signed up to our climate policy advocacy asks.
Undertook our fourth assessment of buy-in providers’ responsible investment practices.
Analysed manager voting behaviour through our stewardship dashboard, to support clients’ stewardship.
Continued to advocate for policy reforms to enable better use of DB pension assets.
Over 250 delegates attended our 2024 investment conference.
Launched best practice principles for managers’ systemic stewardship.
Continued to lead the ICSWG Influence workstream, aiming to influence future regulation to encourage better sustainable investment practices.
What does our report cover?
In our latest stewardship report, we cover in turn:
- Our firm’s purpose, strategy, culture and people – the context for our stewardship services to clients
- Our investment and DC departments – the people, processes and activities that support our clients’ allocation, management and oversight of capital
- Responsible investment at LCP – how we integrate consideration of environmental, social and governance (ESG) factors throughout our support for clients’ allocation, management and oversight of capital
- Provider solutions – driving and developing the consideration of RI in our manager research and the incorporation of this research in our client advice.
- Manager stewardship – helping our clients engage with investment managers, with a focus on the managers’ voting and engagement on behalf of clients.
- Systemic stewardship – engaging with policymakers and regulators, both directly and in collaboration with others, to address systemic financial risks such as climate change.
- An evaluation of our stewardship – how effective we believe we are being in supporting clients’ stewardship and how we are continuing to evolve and improve it.
We invite your feedback
We encourage you to read our report, to find out more about how we approach stewardship and recent highlights of our work (shown above).
Please tell us what you think, not only about the report itself, but – far more importantly – about the way we support your stewardship and anything you’d like us to do differently in future.
