Decision details

Responsible Investment

Decision Maker: Pension Fund Committee

Decision status: Recommendations approved

Is Key decision?: No

Decisions:

The Committee considered a proposal that LPP become an asset owner signatory to the Principles of Responsible Investment in place of the LCPF, which would delist as a signatory. It was noted that the proposal would commit LPP to reporting publicly, via the annual PRI reporting process, on how the 6 principles were being implemented within their stewardship activities as part of the practical fulfilment of LCPF’s fiduciary and ownership responsibilities.

 

It was also proposed that in order to avoid abortive work a review of the current Stewardship Code be postponed until after a revised Code was issued in the spring of 2019.

 

The Committee considered the effectiveness of proxy voting on behalf of the Fund at shareholder meetings, especially when resolutions were lost, and it was noted that in some cases collaboration between investors presented a strong voice on issues such as responsible investment and even where resolutions were lost there could still be a cumulative impact on the future direction of the Company concerned.

 

A recent report in the media regarding public sector pension fund investments in Scottish private finance schemes linked to offshore tax havens was also discussed and it was suggested that the matter be referred to the Responsible Investment Working Group.

 

Resolved:

 

1.  That LPP become an asset owner signatory to the Principles of Responsible Investment in place of the LCPF which would delist as a signatory.

 

2.  That the Fund's current stewardship statement be reviewed after the new UK Stewardship Code has been issued in the spring of 2019.

 

3.  That the Responsible Investment Working Group consider the recent report in the media regarding public sector pension fund investments in Scottish private finance schemes linked to offshore tax havens and report back on whether this was an issue in relation to the LCPF.

 

Report author: Mukhtar Master

Date of decision: 08/06/2018

Decided at meeting: 08/06/2018 - Pension Fund Committee

Accompanying Documents: