Agenda item

This report includes training on ESG investing and ESG metrics, in particular the ESG metrics that are reported regarding the Fund’s investment with Allspring.

Phil Triggs (Tri borough Director of Treasury and Pensions) introduced the report which included training on ESG investing and ESG metrics, in particular the ESG metrics that were reported regarding the fund’s investment with Allspring.

Jonny Moore (Isio) provided a presentation on the ESG metrics training which gave an overview of the following key aspects:

• ESG investing and an introduction to responsible investing
• ESG metrics and what was required
• Training on the ESG metrics, including Allspring ESG metrics benchmark scores
• Allspring carbon intensity metrics
• Global warming projections and emissions to date.

The Chair enquired if there was an opportunity to further strengthen the Council’s commitment to utilising ESG metrics within its investment principles in future investments. In response Jonny Moore noted that this would be integrated into the data centres review by incorporating ESG metrics into the decision-making process.

Marian George (Independent Investment Advisor) indicated that the Task Force on Climate-related Financial Disclosures report (TCFD) would be introduced to Local Authorities in the near future. Officers were waiting for guidance to be issued. She suggested that it would also be useful to look at the general trends as they will vary each quarter for different reasons.

Councillor Adrian Pascu-Tulbure noted that given the variety of metrics and measurement approaches available, it was still early days in the industry, with many different methods being adopted each carrying some level of risk. He asked how the Committee could guard against these risks while maintaining the necessary flexibility to ensure they were making the right decisions without being entirely bound to one specific approach. In response Andrew Singh (Isio) explained that as a fund you could set your specific beliefs in relation to ESG via the sustainable development goals (SDGs). Asset managers would have funds that would align to those SDGs and the fund could invest specifically in those mandates.

Marian George (Independent Investment Advisor) enquired when the responsible investment policy which sets out the general principles, was last assessed. Phil Triggs confirmed that it last reviewed a year ago. Marian George advised, that given recent changes, the policy should be reviewed regularly to ensure it remained up to date and relevant.

Councillor Adam Peter Lang requested whether officers could share some aspects of the direction of travel for investments and pensions funds, including any opportunities to mobilise the pension fund to support UK economic growth. Phil Triggs noted that from a practitioner point of view he wrote for the LGC and an article was published on 10^th September 2024 on Canada fund merger consolidation and future UK investment. Additionally, another article was published on climate change and responsible investment, and he would forward both to the Committee.

Action: Phil Triggs

Councillor Laura Janes requested that the Committee reviewed its investment policy in the near future. The Committee agreed to schedule an opportunity in the near future to review its investment policy, including an assessment of its SDGs. However, before proceeding the Committee requested advice on the best approach to manage this review outside of a formal Committee meeting setting. This would include guidance on how to incorporate the key views and beliefs of the fund’s members effectively.

Action: Isio Group/ Phil Triggs

RESOLVED:

The Pension Fund Committee noted the principles of the training.