Decision details

County Councillor Ellard (the Chair of the Working Group) presented a report on the discussions which had taken place at meetings held on the 20th September and 8^th November 2017.

He reported that the Working Group had met with representatives from the LPFA and had agreed that the two authorities should work towards adopting a single approach/policy for responsible investment and identify any areas where policies could be aligned in order to strengthen the Partnership and assist with pooling in the future. He added that the Working Group was due to meet again in December and would consult with the Pension Board before presenting recommendations to the Committee in March 2018.

The Committee discussed the level of influence that could be exercised via shareholder voting and it was suggested that consideration should be given to divesting from certain companies if voting on responsible investment matters was not considered to be effective. In response the Managing Director and Chief Investment Officer explained that LPP Investments had a dialogue with companies which the Partnership invested in and would consider divestment in the event that relationship were to break down. It was suggested that a clearly defined policy, which reflected the agreed position of the LPP shareholders regarding responsible investment and specified the conditions where divestment would be acceptable, would assist future decision making regarding investments. 

Resolved:

1.  That the discussions to date at the Working Group, as set out in the report presented, are noted.

2.  That a further report, with specific recommendations regarding responsible investment, be presented to the Committee in March 2018 for consideration and approval.