Brunel may face wind-down but our exceptional RI impact is repeatable

When Brunel came into being, it was a very small team with very big ideas. But has it delivered?

One of the first signs of Brunel’s ambitions and commitment on Responsible Investment (RI) was its decision to appoint a Chief Responsible Investment Officer in 2017. At the time, I was one of only a very small handful of Chief RI Officers globally – C-suite level recognition was a clear sign of ambition and expectation.

One of the reasons for our focus on responsible investment was the experience and responsibilities of our ten client-shareholders, as it meant we were implementing investment strategies for some of the most ambitious funds in the LGPS. It absolutely makes sense for local authorities and the Environment Agency to want to treat climate change, biodiversity loss and social challenges as risks that fall within the scope of Brunel’s fiduciary duty. After all, they deal with these externalities every day through services they already provide – such as in social care, or waste & recycling.

When we built Brunel’s exceptional capacity in these areas, it was a gradual, complex process. Our clients were willing to devote resources and time, of course. Just as importantly, however, they drove the process by their determination and ambition, spurring us on to prioritise progress across a wide range of RI ambitions.

The mandate we were handed enabled us to integrate a range of RI risks into risk management – right along the investment chain. Brunel made an early commitment to Net Zero and to 50% progress on that journey by 2030. Our RI team developed policies for RI, Climate Change, Stewardship, Voting; launched an RI Strategy; ran two Climate Stocktakes; and integrated RI across all asset classes, including private markets. We sought impact using the available tools, but we also provided leadership, identifying RI gaps that needed filling and developing new tools to address them.

Eight years after we received FCA authorisation, now is the moment to ask: did we move the dial? Did our policies, products and outcomes work?

The answer must be a decisive yes. Five areas of progress are worth highlighting.

Net Zero Investor’s Renewable Infrastructure Forum 2026: 18^th, March, The Chesterfield Mayfair

First, our headline ambitions. We had committed to reducing emissions exposures across Brunel listed markets by 50% by 2030 (vs 2019). By end-2024, we had achieved a 60% reduction; reduced reserves intensity by 93%; and extended Paris-aligned objectives and targets to cover 92% of all assets. 100% of both our UK and international property portfolios are awarded the GRESB “green star” designation.

Secondly, we developed new products to enable improved RI outcomes in some of the toughest sectors. Our Multi Asset Credit portfolio targeted full Paris Alignment by 2040 in feasible sectors, like corporate issuance, but also inspired managers to make pioneering progress in tougher asset classes, like structured credit and leveraged loans. Another crucial innovation came in the form of Paris-aligned passive indices, developed in partnership with FTSE Russell to capture the low-cost and diversification benefits of passive while targeting tangible Paris alignment. Our clients also helped us go local – our Cornwall Local Impact Portfolio targets both renewables and affordable housing.

Thirdly, our investments exerted real-world impact. Brunel’s Renewable Infrastructure portfolios target major projects that reduce emissions, and support transition and adaptation, in many cases contributing to the UK economy and to UK energy security. More broadly, more than 80% of our infrastructure portfolios (£1.2bn) is in assets that directly contribute to sustainable outcomes. Private Markets offer special opportunities to build the UK’s future.

Fourthly, we encourage and challenge companies. Thanks in great part to our external engagement provider, in 2024 alone Brunel engaged 759 companies and conducted 121 public policy interactions, with 1,289 meetings instructed in all. 93 objectives were completed, a further 26 substantially completed, and 24 partially completed. Our provider engaged on our behalf on 3,350 issues and objectives.

Fifthly, we led or contributed to industry and policy RI initiatives, partnerships and statements. Brunel both funded and helped shape the creation and launch of the IIGCC’s Net Zero Investment Framework – in 2021, signatories represented more than $16 trillion AUM. Brunel pioneered work on asset manager voting behaviour that led to the Asset Owner-Asset Manager Statement to improve voting alignment. We were early adopters of TCFD and TNFD. In 2020, Brunel co-created the Asset Owner Diversity Charter. We sat on the National Wealth Fund Taskforce, and I now sit on the Steering Committee of the UK’s Transition Finance Council.

Our RI impact and leadership are recognised beyond the UK, not least at the Europe-wide IPE and IPE Transition Awards. Since 2020, we have been named best in Europe across multiple categories: ESG, innovation, portfolio management, transition communications, private markets, impact investing, climate transition. Together with our ‘Walking the Talk’ focus on internal consistency (e.g. on carbon footprint and DEI), the awards are important in validating our work globally.

Our progress still matters for its own sake: £35bn of investments have been shaped by our partnership’s RI commitments and ambitions. But we have one last big ambition on RI. We want what Brunel has built and delivered to be borrowed, copied, repurposed and harnessed elsewhere, whether at asset owners or asset managers. Whether in targets, outcomes, impact, engagement, or industry and policy coordination, Brunel has proved what is possible. May that give others hope – and opportunity.