Draft LCPF Responsible Investment Policy and Climate Change Policy
Decision Maker: Lancashire Local Pension Board
Decision status: Recommendations Approved
Is Key decision?: No
County Councillor K Ellard and Councillor R Whittle gave a presentation on the work done by the Responsible Investment Working Group which had been established in June 2017 by the Pension Fund Committee to explore how to further support responsible investment.
In considering the draft Responsible Investment and Climate Change Polices set out at Appendices 'A' and 'B' the Board noted that the Working Group had consulted with representatives from the LPFA, the Investment Panel and the Responsible Investment Manager from LPPI. Board members welcomed the draft policies and recognised the pragmatic view which the Working Group had adopted when developing them. With regard to divestment the Board agreed that it was better to remain engaged with companies in order to effect change, though it was recognised that in a small number of cases it may be considered necessary to disinvest and the draft policy would provide for that.
The Board also discussed the responsible investment issues which were identified as being of interest and noted that organisations such as LAPFE and Share Action provided information which would assist in identifying companies with a proven record of supporting the living wage. It was also acknowledged that care would need to be taken to ensure that the interest in supporting Lancashire based companies did not contradict other interests identified in the policy.
1. That the views of the Board as set out above in relation to the draft 'Responsible Investment Policy' for the LCPF and 'Climate Change Policy' are noted and referred to the Working Group on the 1st February 2018 for further consideration before final recommendations are made to the Pension Fund Committee on the 23rd March 2018 for approval.
2. That an update on the Responsible Investment and Climate Change Policies is presented to the next meeting of the Board.
Report author: Mukhtar Master
Date of decision: 16/01/2018
Decided at meeting: 16/01/2018 - Lancashire Local Pension Board