Agenda item

Border to Coast Pensions Partnership Responsible Investment Policy

Minutes:

The Committee considered a report of the Corporate Director of Resources which advised of the Responsible Investment Policy and the associated Shareholder Voting Policy that Border to Coast Pensions Partnership (BCPP) would adopt once it became the legal owner of pension fund assets (for copy see file of Minutes).

 

Councillor Atkinson noted that the Committee must act with the best financial interest of the beneficiaries in mind, and in view of this asked if the report should read that companies ‘must’ be aware of the potential risks associated with adopting practices that were socially, environmentally or ethically unacceptable. The Member was advised that it would be difficult for the Committee to require this of the Managers but that there was an expectation that Fund Managers would look at the behaviour of companies they invested in, in line with the ESG policy.

 

The Member then asked about the voting arrangements in the BCPP and was referred to Appendix 2 of the report which set out the principles for voting, which the BCPP would adopt.

 

Rachel Elwell, Chief Executive of the pool assured the Member that responsible investment was a fundamental part of the investment process and transparency was key in areas such as voting.  Any ESG concerns the Committee had about a company could be addressed through the pool’s Joint Committee, of which Councillor Davinson was a member. In addition a representative of the pool would attend every meeting of the Committee.

 

Resolved:

 

That the Responsible Investment Policy and Corporate Governance Policy included in Appendices 1 and 2 that the BCPP would operate on behalf of the Pension Fund as assets were transferred to the pool, be noted and agreed.

Supporting documents: