Marvin OnumonuSmart Pension and Denominator have published a human capital review of Smart Pension’s equity portfolio.
The analysis used Denominator’s data on more than 10 million companies, covering leadership make-up, workforce practices, employee turnover, pay gaps and organisational policies.
Results were benchmarked against sector peers.
The research found that 99% of portfolio companies had at least one woman on the board, while 88% of executive management teams included women.
Utilities, technology and industrial goods had the lowest exposure to poor employee turnover, while business and consumer services, basic materials, and transport and logistics saw the highest.
Fiona Smith, head of responsible investment at Smart Pension, said: “Denominator’s analysis on human capital within the companies in our portfolio offers valuable insight into long-term sustainability and governance practices.
“This data can be an indicator of a company’s risk management and resilience.
“We look forward to using these insights to empower us to engage more effectively and drive meaningful change.”
Anders Rodenberg, CEO at Denominator, said: “Our collaboration with Smart Pension shows how human capital intelligence can power more informed, responsible, and resilient investment strategies.
“Portfolio-wide visibility into people related risks and opportunities enables asset owners to act with greater confidence and consistency.”
Karen Shackleton, director and chair of the board at Pensions for Purpose, said: “Evaluating the human capital value in underlying investments can be a challenge for UK pension funds.
“Therefore, the starting point needs to include a baseline assessment so that any improvements from strategy changes can be benchmarked.”
