Issue - meetings

To present members with an update on engagement activity undertaken by the Local Authority Pension Fund Forum (LAPFF) on behalf of the Fund.

The Board noted the report providing an update on the engagement activity undertaken by the Local Authority Pension Fund Forum (LAPFF) on behalf of the Fund A summary of key engagements made by LAPFF as reported in Appendix 1 (June 2025) were presented as follows:

• The United Nations was reported to project a 40% global water shortfall by 2030, driven by population growth, climate change, and unsustainable consumption. In this context, LAPFF prioritised water stewardship as a critical element of responsible business, particularly in the mining and agricultural sectors. During the last quarter, LAPFF was reported to have engaged with Glencore, Antofagasta, and Anglo American to promote integration of water management and human rights due diligence into corporate strategy. Glencore advanced its water risk monitoring through Geographic Information Systems and adopted frameworks such as the Taskforce on Nature-related Financial Disclosures (TNFD) and the LEAP Approach. Glencore continued to face issues with uneven independent water assets, having now resolved issues resulting in fines throughout 2024.  LAPFF would continue dialogue with the company and welcomed a scheduled October meeting with their Chair to further discuss governance and sustainability oversight.

• In the housing sector, LAPFF was reported to have continued engagement with the UK’s major housebuilders on climate-transition planning, encouraging Paris-aligned targets, credible net-zero roadmaps, and low-carbon innovation. At a meeting with the Chair of Taylor Wimpey, the company reported a 47% reduction in absolute emissions since 2019 and became the first UK housebuilder to reach the Carbon Trust’s “Route to Net Zero – Advancing Level.” Taylor Wimpey embedded its decarbonisation strategy within governance structures and employee forums and reaffirmed its target of net zero operational emissions by 2035. While progress was being made in water protocols, construction methods, and technology trials, the company had not yet identified a definitive pathway to zero-carbon homes. LAPFF would continue to monitor developments, including supply chain resilience, contractor training, and workforce adaptation.

• On governance, LAPFF had reiterated its concerns that the luxury goods sector faced weaker scrutiny on human rights and supply chain management than high street apparel. During the quarter, LAPFF had met with Louis Vuitton Moët Hennessy (LVMH) and Moncler to discuss these issues. Both companies published their first Corporate Sustainability Reporting Directive (CSRD)-aligned reports, with LVMH also significantly increasing supply chain audits. LAPFF therefore recommended that LVMH strengthen its human rights policy by defining governance responsibilities at senior levels, committing explicitly to international frameworks such as the UN Guiding Principles and ILO standards, and improving transparency on audit outcomes.

• Finally, In the steel sector, LAPFF continued its long-standing engagement with ArcelorMittal, the world’s second-largest steelmaker, on its decarbonisation strategy. The company’s focus has shifted from carbon-intensive production to low-carbon technologies. While ArcelorMittal outlined a decarbonisation pathway, gaps remained, including the absence of a published Just Transition plan. The company had developed internal workforce transition roadmaps at sites such as Dunkirk, where employees were moving to Electric Arc Furnace operations or retirement. LAPFF noted that it would continue to press for clear timelines, transparency  ...  view the full minutes text for item 12

To present members with an update on engagement activity undertaken by the Local Authority Pension Fund Forum (LAPFF) on behalf of the Fund.

George Patsalides (Finance Analyst, Brent Council) introduced a report from the Corporate Director Finance & Resources which outlined the latest Local Authority Pension Fund Forum (LAPFF) Engagement Update.

In presenting the update, members were advised that the LAPFF had been established to promote the highest standards of corporate governance in order to protect the long-term value of local authority pension funds and engage directly with companies in which investments were held in order to affect change, understand views on company behaviour and risks with engagement being member led and designed to advance corporate responsibility and responsible investment on the basis of collaboration strengthening the voice of Pension Funds. 

In noting the summary of key engagement work undertaken by the LAPFF during April - June 2025 (as detailed in Appendix 1 of the report) the key areas of activity were highlighted in relation to Water Stewardship especially in relation to mining and agriculture; engagement with the UK’s largest housebuilders on climate-transition planning and the advancement of low-carbon innovation alongside equitable workforce adaptation, especially in the face of broader sectoral pressures such as skills shortages and energy-grid limitations; engagement with the luxury good sector in relation to human rights and supply chain management; lobbying within the steelmaking industry in relation to  the approach towards decarbonisation price volatility and geopolitical risk along withupdates on efforts to engage with UK boards on corporate governance.

Having noted the viability and advantages available through the sustained collective effort and pressure that could be applied through the LAPFF in seeking to promote corporate responsibility and responsible investment, rather than by single Pension Funds acting individually, the Chair thanked George Patsalides for presentation of the report, and then invited members to raise any questions or comments, with queries and responses summarised below:

·            Further clarification was sought on the process of engagement and lobbying undertaken by LAPFF and how the issues raised were prioritised across the Pension Funds included as members.  In response, officers advised that as a member the Brent Pension Fund was entitled to contribute and participate in the Forum’s work plan, organised around issues of shared concern including voting rights at the LAPFF Annual Meeting and members of the Sub Committee being able to attend their regular meetings.  This collaboration with other investors was emphasised as having the potential to strengthen the collective voice of Pension Funds, influence major companies on key Environmental, Social, and Governance (ESG) issues, and help drive real-world change with the issues raised as priorities being areas of concern and focus identified on a collective and collaborative basis across a range of Fund members.  Officers advised that they would ensure that details of future LAPFF meetings were shared with Sub Committee members with an interest also expressed in examining the role of the LAPFF in seeking to engage with companies in which fund investments were held regarding their approach towards how these were managed in areas of high risk geopolitical conflicts.  Officers advised that whilst much of the detail would not be  ...  view the full minutes text for item 9