Issue - meetings

[To provide an update on the work undertaken in relation to responsible investment activities since the last meeting]

Rachel Brothwood, Director of Pensions took the Committee through the detailed report on the work undertaken by the Fund in relation to responsible investment since the last meeting. 

Malcolm Cantello (Unison) asked, in light of the recent Climate Change conference in Krakow, was it necessary for the Fund to update its framework and strategy for managing the risks and opportunities presented by climate change. The Director of Pensions reported that no firm outcomes had emerged from the conference although there was a recognition that policy-makers were moving forward.  The Fund’s four-year framework will be reviewed annually, noting the pace at which policy was evolving.

Councillor Stephen Simkins suggested that the Fund should have a strategy for its involvement in new green technologies.  The Director of Pensions reported that further information would be available to Committee as the Fund developed its investment in those areas.

Councillor Jane Stevenson asked whether the decision of President Donald Trump to withdraw the United States from the Paris Agreement on Climate Change was impacting on the stance companies were taking to climate change issues.  The Assistant Director reported that she did not believe there had been a negative impact and companies were continuing to make progress in the US and investors continued to use their influence on companies to comply with the Agreement.

Commenting on the Fund’s activity on the stewardship theme of diversity, Councillor Angela Sandison suggested that the best person for the job should be appointed rather than applying quotas. In agreeing with the point, the Chair said that some companies do not have an interest in the diversity agenda.  The Fund was seeking to use its influence to make positive impacts on appointments. He thanked the Committee and the Fund for the way it used its powers in partnership and through its share holdings and voting activity to see positive change in company behaviour.

Resolved:

1.     That the Fund’s Framework and Strategy for Managing the risks and opportunities presented by climate change be approved.

2.     That the Fund’s voting and the Local Authority Pension Fund Forum’s (LAPFF’s) engagement activity for the three months ending 31 December 2018, including Appendix A to the repot be noted.

3.     That it be noted that the issues discussed in the LGPS Central Quarterly Stewardship Report which is available on the LGPS Central website: https://www.lgpscentral.co.uk/responsibleinvestment/

4.     That it be noted that the issues discussed by LAPFF are set in the Quarterly Engagement Report which is available on the LAPFF website:
http://www.lapfforum.org/publications/qrtly-engagement-reports/

5.     That correspondence received from the DivestWMPF campaign group, and the Fund’s response, together with a request to LAPFF to consider direct engagement with Lockheed Martin be noted.

6.     That further work undertaken to develop the Fund’s responsible investment approach be noted.