Responsible Investment Report
Decision Maker: Pension Fund Committee
Decision status: Recommendations Approved
Is Key decision?: No
RI Update Q2 2019
The Head of Fund presented a report which updated the Committee on activity which supported the Fund in fulfilling its commitment to long term responsible asset ownership in line with the Investment Strategy Statement and the Responsible Investment Strategy.
With regard to the two items raised at the previous meeting the Committee was informed that it was not possible to calculate how much companies spent on lobbying against climate change mitigation as the detailed costs on individual topics/themes were not reported. However, as the Local Authority Pension Fund Forum was already exploring this subject it was suggested that a representative be asked to address the Committee to provide some reassurance that action was being taken on behalf of Local Government Pension Schemes in this area.
Mr C Rule, Interim Chief Executive, Chief Investment Officer and Managing Director (Investments) confirmed that the Local Pensions Partnership managed investments in accordance with its own RI policy and that of the Fund. He referred to existing investments in green energy/social housing and low exposures in relation to fossil fuels and reminded the Committee that current investments complied with the targets set out in those policies.
The joint Responsible Investment Working Group proposed by the London Pensions Fund Authority was also discussed and it was reported that whilst the Committee had an agreed Responsible Investment policy in place the Authority had not yet agreed its own policy and so were not in a position to move forward with a joint Working Group.
1. That a representative of the Local Authority Pension Fund Forum be invited to attend a briefing for members of the Committee at 10.00am on the 29th November 2019 ahead of the next scheduled meeting.
2. That Mr R Branagh, the Managing Director of the London Pensions Fund Authority, be invited to attend the next meeting of the Committee to discuss the joint Working Group on Responsible Investment.
3. That the update on responsible investment activity, as set out in the Appendix to the report presented, is noted.
Report author: Mukhtar Master
Date of decision: 20/09/2019
Decided at meeting: 20/09/2019 - Pension Fund Committee