USS releases report outlining responsible investment strategy

The Universities Superannuation Scheme (USS), a large private pension scheme in the UK, has released a report outlining its approach to responsible investing. At a broad level, the strategy focuses on integrating environmental, social and governance (ESG) factors into investment decisions by leveraging the scheme's position as an investor to engage with firms and advocate for good ESG practices. USS has assets under management, as of December 2021, of £95bn. A highlight of the strategy so far has been a “climate tilt” introduced in January 2022. According to USS: "The approach, which will be managed by Legal & General Investment Management, will effectively reward companies who can demonstrate they are on the path to lowering greenhouse gas emissions by giving them a higher weighting. The converse will be true of companies that cannot demonstrate this".