Agenda item

The Committee considered a report of the Corporate Director of Resources which provided an update on the approach to Responsible Investment (RI) at Border to Coast Pensions Partnership (BCPP) (for copy see file of Minutes).

Rachel Elwell, the Chief Executive of BCPP emphasised the importance the Partnership attached to Responsible Investment. BCPP was able to create specialist expertise to ensure it fulfilled its responsibility to hold to account the companies it invested in on behalf of the Partner Funds.

Councillor Temple referred to private markets and distressed debts, and expressed concern at the potential risk that ESG was not given due prominence. The Member asked how this would be addressed.

Rachel Elwell assured the Member that this was taken very seriously, and Responsible Investment was particularly important for private markets which were liquid, ensuring that Managers and companies were aware of the potential risks and were mitigating against those risks. A robust approach included the development of a detailed questionnaire which challenged the Managers’ understanding of the RI Policy, and to ensure that they had a process in place to respond to future hot topics. The Managers were required to report quarterly to BCPP.    

Resolved:

That the Responsible Investment Policy and Corporate Governance and Voting Guidelines Policy that BCPP would operate on behalf of the Pension Fund for assets transferred into the pool, be noted and approved.