Issue - meetings

This report is a summary of various Environmental Social & Governance (ESG) issues that the Surrey Pension Fund, Local Authority Pension Fund Forum (LAPFF), Robeco, and Border to Coast Pensions Partnership (BCPP) have been involved in, for the attention of the Pension Fund Committee.

NB: Part 2 annexes 4 and 5 at item 14

Witnesses:

Neil Mason, LGPS Senior Officer

Lloyd Whitworth, Head of Investment & Stewardship

Key points raised during the discussion:

1.    The LGPS Senior Officer and Head of Investment & Stewardship introduced the report and provided a brief overview. The report could be found from page 59 of the agenda.

2.    The Committee thanked officers for the comprehensive report.

3.    In regard to engagement, Cllr Potter asked whether there were any cases where engagement had concluded and escalation was being carried out. The Head of Investment & Stewardship said that they could ask Border to Coast whether there were any specific areas on this. Legal and General did have a list of companies where they take exclusion and it was believed that there were 13 companies who would claim to be in that position. Furthermore, Members noted that, during the last annual review, Legal and General had excluded one additional company.

4.    The Chairman highlighted that Legal and General’s website included information on companies that had been excluded and the reasons why.

5.    Cllr Williams asked for more information on the Corporate Action resolution category. The Head of Investment & Stewardship agreed to provide information outside the meeting.

Actions/ further information to be provided:

Action A4/22 - In regard to engagement, Cllr Potter asked whether there were any cases where engagement had concluded and escalation was being carried out. The Head of Investment & Stewardship said that they could ask Border to Coast whether there were any specific areas on this.

Action A5/22 - Cllr Williams asked for more information on the Corporate Action resolution category. The Head of Investment & Stewardship agreed to provide information outside the meeting.

Resolved:

The Pension Fund Committee:

1.    Reaffirmed that ESG Factors were fundamental to the Fund’s approach, consistent with the Mission Statement through:

a)    Continuing to enhance its own Responsible Investment approach, its Company Engagement policy, and SDG alignment.

b)    Acknowledging the outcomes achieved for quarter ending 30 June 2022 by Robeco in their Active Ownership approach and the LAPFF in its Engagement with multinational companies as at 30 June 2022.

c)   Noting of the vote by the Surrey Pension Fund in the quarter ended 30 June 2022.

This report is a summary of various Environmental Social & Governance (ESG) issues that the Surrey Pension Fund, Local Authority Pension Fund Forum (LAPFF), Robeco, and Border to Coast Pensions Partnership (BCPP) have been involved in, for the attention of the Pension Fund Committee.

NB: Part 2 annexes 4 and 5 at item 14