IMPORTANT INFORMATION
All data as at 31 December 2025, unless specified otherwise. This document is issued for information purposes only. It does not constitute the provision of financial, investment or other professional advice. We strongly recommend you seek independent professional advice prior to investing. The value of investments and the income derived from them may fall as well as rise. Investors may not get back the amount originally invested and may lose money. Any forward-looking statements are based on CCLA’s current opinions, expectations and projections. CCLA undertakes no obligations to update or revise these. Actual results could differ materially from those anticipated. All names, logos and brands shown in this document are the property of their respective owners and do not imply endorsement. These have been used for the purposes of this document only. CCLA Investment Management Limited (registered in England & Wales, No. 2183088, at One Angel Lane, London EC4R 3AB) is part of the Jupiter Group, and is authorised and regulated by the Financial Conduct Authority.
Foreword
What is Good Investment?
Our responsible investment approach
2025 a year in action
Stewardship and engagement
Appendix 1: 2025 engagement record
Appendix 2: Shareholder proposals
Appendix 3: Investors supporting CCLA engagement
Appendix 4: Governance and our portfolios
Appendix 5: Climate pledge and portfolio carbon footprint
Appendix 6: Memberships and initiatives
Appendix 7: Industry recognition
Appendix 8: Standards, frameworks and initiatives
2026 Better World
Stewardship outcomes for the year 2025
Share
result
Engagement focus:
better work
Strong labour standards and the promotion of ‘good work’ matter to our clients. These elements also underpin long-term business resilience. We believe companies that uphold fair treatment of workers, safe conditions and ethical labour practices are less exposed to reputational risks, regulatory penalties and costly disruptions in supply chains. As a result, these themes are key priorities in our engagement work.
Only Dreaming, HM Prison Elmley (Sheppey Cluster) | Courtesy of Koestler Arts
Engagement themes
Our engagement work is organised around three themes: better work, better environment and better health.
Learn more
In 2025 we published the third iteration of the Modern Slavery UK Benchmark and launched a pilot project to rank the largest listed companies in the world on their modern slavery disclosures. This pioneering project aims to incentivise companies to strengthen their response to modern slavery using a combination of annual company rankings and sustained investor engagement. The benchmark and its results are covered here. We also coordinated collaborative investor engagement with 20 construction firms to address the risks of modern slavery in their sector.
While we dedicate significant effort to engaging with individual companies to enhance their approach to modern slavery, we also engage with UK policymakers to encourage more progressive modern slavery legislation. This is covered in the case studies and in detail here.
Aside from modern slavery, also in 2025, we engaged 14 companies (13 listed in the UK and one listed globally) on payment of the Living Wage. We engaged major sugar buyers – Coca-Cola Co, Nestlé and Unilever – on human rights abuses in the Indian sugar supply chain, and engaged with Amazon on workers’ rights. See the engagement case studies.
Better work engagement themes
Better work engagement themes
Our better work engagement pillar consists of several underlying themes. For each theme, we define clear, measurable objectives to guide our approach to engagement. Portfolio companies are evaluated against each of the relevant themes and placed into one of five performance levels, based on a set of evidence-based standards. These are set out below.
Our engagement approach aims to encourage portfolio companies to improve their performance in the engagement grid, with companies evaluated annually to track improvement or deterioration.
Modern slavery
Evidence-based standard: CCLA Modern Slavery Benchmark 2025
Forced labour
Evidence-based standard: Know the Chain Benchmark
Human rights
Evidence-based standard: World Benchmarking Alliance (WBA) Social Transformation Framework – Section 1
Evidence-based standard: Corporate Human Rights Benchmark (CHRB)
Special projects – workers
Evidence-based standard: Case-by-case basis with agreement of the CCLA Investment Committee
Better work
Evidence-based standard: Sustainalytics Global Standards Screening Analysis
Equity holdings under better work engagement
Equity holdings under better work engagement
The table below places the portfolio companies in the scope of the better work engagement pillar into five performance levels, based on the themes identified above. The key indicates progress or deterioration evidenced during the 2025 calendar year. Where a company is covered by more than one theme, its position is determined by its lowest placing.
The companies above represent CCLA’s equity holdings in the scope of the various better work engagement themes. Equity holdings were taken on 1 January and 1 July 2025. Any companies purchased after 1 July will come into the scope of our portfolio engagement in 2026. Please note that Coca-Cola Co, Unilever and Nestlé fall into level 4 because of the special engagement project relating to labour exploitation in the Indian sugar supply chain. See next page for details.
*Not held in CCLA portfolios at 31 December 2025.