HOW WE MANAGE OURSELVES
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How we're governed
Our culture
Our team, resourcing and incentives
Our footprint
Redington was acquired by Arthur J. Gallagher & Co in October 2024. Gallagher is one of the world’s largest insurance brokerage, risk management and consulting firms, with a deep commitment to pensions, benefits and investment consulting. The combination will create a truly global investment consulting firm with the ability to drive outstanding outcomes for our clients.
Our board works with the executive team to set Redington’s strategic direction and ambitions. It continues to encourage the maintenance of our longstanding entrepreneurial culture and growth mindset, including the expansion of our sustainable investment and stewardship services. Given the strategic importance of these areas the Board focuses a good deal of time and attention on them, with regular contact with the heads of our sustainability and stewardship business.
Investment advice and decision-making is overseen by our Investment Strategy Committee (which meets weekly). Sustainable Investment holds a seat on this Committee, to ensure clear sustainability input to all investment advice. Depending on the topics under discussion at the meeting, this role is assumed by either of our co-Heads of Sustainable Investment.
We continue to have senior input into all aspects of our sustainability approach, from internal operations, quality of communications (including this report), to public policy consultation responses. Progress against all public commitments made regarding sustainability are reviewed on a regular basis by our Senior Leadership Team. This includes our B Corp status, assessing progress against our own net-zero commitment, and those commitments taken on as part of our memberships of the Investment Consultant Sustainability Working Group (ICSWG) and the Net Zero Investment Consultants Initiative (NZICI). The scores from our last B Impact Assessment, in 2022, are included in full in the appendix.
At Redington, our culture, people and how we treat one another is paramount. Our culture has evolved organically over our 19 years, but has remained anchored by three values throughout:
Redington was founded on the principle of challenging the pensions industry to improve outcomes for members. This still very much runs through our organisation and the way in which we operate. We challenge ourselves, each other, our clients and the industry to find better ways of doing things.
We want to foster an environment where colleagues feel empowered to speak up, respectfully challenge the status quo and learn from mistakes. We aim to provide the tools, training, support, coaching and mentoring that will empower employees to thrive in current and future roles.
Redington’s generosity is what makes it such a special place to work. The whole firm aims to share knowledge, time, resources and best practices with each other, our clients, our sector and the broader industry at large.
To truly integrate these values across the firm, we deliberately devolve responsibility down the organisation. Our employee-led Diversity, Equity & Inclusion Committee works closely with our Leadership and People teams to ensure inclusivity is central to everything we do. Our People team provides channels for feedback to be heard and acted on through engagement surveys, focus groups and an anonymous suggestions box.
We challenge ourselves and the wider investment industry to follow best practices with respect to inclusion and diversity because, not only is this the right thing to do, it helps improve the service we deliver to our clients. For example, we actively try to source candidates from diverse backgrounds to ensure that we bring in new colleagues to help us think and work differently.
We’re currently working with the following initiatives:
Just as we’re constantly learning and seeking to improve, we’re also keen to share what we know, be transparent about what we think has worked for us, and the things that haven’t. In this vein, we’ve co-founded - and continue to help steer - industry groups such as the Investment Consultants Sustainability Working Group (ICSWG) and the Net Zero Investment Consultants Initiative (NZICI).
We publish our gender pay gap voluntarily as part of our efforts to promote transparency about this issue across the financial services industry and to challenge ourselves to continue to improve.
We are pleased that our mean gender pay gap fell year on year for 2024. Our mean Gender Pay Gap decreased to 1.7% in 2024 (from 3.2% in 2023) and our mean bonus pay gap was -14.4% (32.6% in 2023), reflecting higher mean bonuses for female staff. Nevertheless, we recognise our ongoing need to continue to make progress given our median pay gaps for both pay (13.7%) and bonuses (40.0%).
Whilst we are encouraged by the progress to date, we remain committed to improving opportunities for increased gender representation as well as ensuring that we treat all staff fairly and practise equal opportunities, especially regarding assignments and promotions.
Redington’s purpose upholds across the entire team.
Sustainability considerations are embedded into everyone’s responsibilities, regardless of which function they undertake, but how this is embedded and manifests is different for each role and individual. For example, our Manager Research and client-facing teams will embed material sustainability considerations into their analysis and work for our clients, while our Operations team will consider the environmental and social impacts of facilities management and procurement.
Our team is encouraged to undergo training and study for various qualifications, including the CFA UK’s Certificates in Sustainable Investing, in Climate and Investing, or in Impact Investing.
Collectively, our specialist Sustainable Investment team – with a headcount of eight – has more than 50 years’ sustainable investment and stewardship experience and ensures that our clients benefit from a unique resource and skill-base. Importantly though, it is not only our specialists that work on sustainable investment. Everyone is expected to be able to support clients in their stewardship and sustainability decision-making.
In 2024 we continued our efforts to ensure that all colleagues in the Investment Consulting team gain direct knowledge and insight into sustainable investment matters. We do this through sharing best practices in terms of individual client papers and presentations, as well as in discussion sessions open to all staff, such as our weekly Investment Strategy Committee meetings. This year we also began upgrading our approach to fully integrating sustainable investment analysis into our manager research recommendations. Particular pieces of integrated analysis finalised in 2024 include a passive equity preferred list (referenced as a case study in this report), while the overall developments to our approach will benefit our manager research more broadly.
ESG reporting analytics continue to be integrated across our modelling capabilities and delivered as standard by our Modelling team. We use sustainability data on climate and other metrics from market-leading data providers including MSCI, enabling us to share considered insights with clients. Over 2024, our Modelling team made several updates to reflect evolving tools and industry best practice. The team developed our methodology for sovereign bond emissions reporting and rolled this out across our client base. In addition, the team continued to incorporate updates from MSCI into our climate scenario analysis modelling (founded on the work of NGFS, the Network of Central Banks and Supervisors for Greening the Financial System). A key focus has also been driving efficiencies within our reporting and the processes that sit behind it.
Our aim of delivering sustainable investment advice effectively is reflected in the following firmwide performance objectives: “embed sustainable investment into research”, “embed sustainable investment into advice” and “embed sustainability into operations”. These mean our employees are fully incentivised to support clients with their sustainable investment and stewardship requirements, as delivery against them influences annual appraisals, bonuses and promotions.
In 2024, the People Team developed a Wellbeing strategy encompassing the five pillars of overall health and wellbeing. As part of this strategy, we improved our mental health policies and implemented line manager training specifically designed to upskill managers in identifying and supporting employees with mental health challenges.
Additionally, we conducted company-wide ‘Lunch and Learn’ sessions to increase engagement and awareness of the support available at Redington, and to foster an environment where employees feel comfortable speaking up about their mental health. We also launched physical wellbeing initiatives in partnership with local businesses and doubled down on promoting our employee benefits programme internally.
This Wellbeing strategy complements our existing equal opportunities and diversity, equity, and inclusion policies, allowing us to align our best practices for Mental Health and Wellbeing with other leading UK organisations.
By far the largest impact we can have in the world is through supporting our clients to be conscious of their impact on people and planet while delivering the investment returns they need to fulfil the expectations of their members and beneficiaries, importantly helping them to reduce those impacts over time.
But we take our own footprint seriously too. We chose our current offices for their low impact and their sustainability credentials – as well as the scope to influence further improvements. We buy recycled and recyclable supplies, and are actively cutting our printing activities, as well as measuring our precise paper usage and financing tree planting to ensure reforestation to reflect this footprint. We benefit from greywater harvesting and electricity efficiency features, notably reducing our power usage – which is 100% sourced from renewable power.
We actively assess our carbon footprint across scopes 1, 2 and 3, including our employees’ commutes and business travel, and have committed to offset the carbon emissions that we cannot eliminate, but still strive to reduce. We continue to buy the highest-quality offsets and over-purchase to provide a further buffer of assurance.
In the spirit of making 100 million people financially secure – for the benefit of people and planet – we planted 5,000 trees in 2024 in lieu of sending paper cards to clients for the festive season, having done this now for three years running. Last year we committed to enhancing our approach in this area, and the Environment pillar of the B Impact Assessment, by working with our building landlords to ensure we’re maximising opportunities for recycling. We are pleased that over 2024 we were able to increase the proportion of waste that is recycled by 4.5 percentage points to 49.5%.
