Agenda item

Report of the Director of Finance.

An officer introduced the report, which set out the responses received from Fund Managers in relation to the Committee’s consideration at their last meeting of the Environmental, Social and Governance Issues.  The officer was of the view that the responses provided a basis for further engagement and discuss issues arising.

The Committee noted that both the GMO and Pantheon Venture had not signed up to the principles contained within the UK Stewardship Code.  Members asked if their reasons were based on philosophical reasons and discussed the type of response that ought to be sent to the Fund Managers.  They asked if there were any associated risks for the Pension Fund as governance and good management were of fundamental importance to the Committee as the custodian of the Pension Fund.

Members noted that the response from Standard Life was exemplary but expressed concern with the responses provided by Aviva and GMO.  Moreover, GMO’s response was considered to be weak and the Committee was of the view that immediate further engagement was required in relation to the Investment Principles.

It was also agreed that the Pension Board needed to discuss the Environmental, Social and Governance Issues in Pension Fund Investment.

RESOLVED: That

(1)          the report be noted;

(2)          the Director of Finance write to GMO in relation to the Investment Principles;

(3)               the Environmental, Social and Governance Issues in Pension Fund Investment be included on the agenda for the next Pension Board meeting.