Issue - meetings

Responsible Investment Policy

Meeting: 09/12/2024 - Pension Fund Investment Sub-Committee (Item 3)

3 Responsible Investment Policy pdf icon PDF 90 KB

Additional documents:

Minutes:

Dapo Shonola (Pension and Investment Manager) introduced the report which provided details of the Fund’s Responsible Investment (RI) Policy for review and approval by the Sub-Committee. He reported that the Fund’s equity holdings were either pooled or under the supervision of Border to Coast Pensions Partnership (BCPP). The Fund’s RI Policy was aligned to the BCPP RI Policy. He advised that the latest review of BCPP’s RI Policy had not led to any material changes being made. The Fund’s RI Policy remained fit for purpose and therefore, no changes had been made to this iteration of the Fund’s RI Policy.

 

Dapo Shonola advised that the Sub-Committee had approved the latest iterations of the Fund’s Climate Risk Policy and Voting Guidelines at its meeting on 9 September 2024. Reviews since undertaken by BCPP had resulted in limited changes to their equivalent policies. He highlighted details outlined in the report relating to arrangements to mitigate deforestation risk, stating that the Fund’s equivalent policies sat above those of BCPP, and the changes made by BCPP were not in conflict with the Fund’s approved Climate Risk and Voting Guidelines policies.

 

Councillor Gifford commented that it was positive that BCPP’s Climate Risk Policy was regularly reviewed and that the effect of deforestation had been taken into consideration. He emphasised the importance of investment policies being regularly reviewed to ensure awareness of a broad range of environmental and geopolitical factors.

 

Councillor Hammersley highlighted the importance of ensuring that investment managers complied with RI policies set out by BCPP. He asked what measures were in place to ensure that organisations honoured their commitments.

 

Milo Kerr (Border to Coast Pensions Partnership) advised that BCPP worked closely with its external engagement service provider, Robeco, to ensure adherence to RI principles. Robeco held events throughout the year focusing on different engagement themes. An active approach was taken to managing holdings.

 

The Chair stated that the Sub-Committee was often contacted by residents and local organisations to highlight areas of potential concern around investments. He stated that policy changes to address deforestation showed that RI policies were frequently reviewed in response to issues and concerns as they arose.

 

In response to the Chair, the Sub-Committee agreed the recommendation of the report.

 

Resolved:

 

That the Pension Fund Investment Sub-Committee (PFISC) approves the Fund’s Responsible Investment Policy attached at Appendix 1 of the report.