Agenda item

The purpose of this report is to update the committee on recent developments within the London CIV (LCIV) regarding Responsible Investment and Engagement.

I have attached an appendix to the report.

The purpose of this report was to update the Sub-Committee on recent developments within the London CIV (LCIV) regarding Responsible Investment and Engagement.  The Sub-Committee welcomed Jacqueline Jackson (Head of Responsible Investment at London CIV).  Ms Jackson gave a slide presentation updating Members regarding key priorities for 2021 with respect to Climate Change, Stewardship, Fund Launches and its policy on Responsible Investment and Engagement.

As part of the presentation, Ms Jackson informed Members that the London CIV aimed to make responsible investment a core part of its investment process across all asset classes and investment mandates, a policy based on the following three clear objectives:

Ø   To support the company’s investment objectives.

Ø   To lead by example and raise the bar on responsible investment throughout the industry.

Ø   To add value to clients through improved services.

She gave an overview on how LCIV designed, researched, reviewed and implemented the policy objectives across all operations including investment portfolio selection and stewardship activities. Ms Jackson then provided an update on the following 6 key priority areas:

Ø  Climate Policy supported by robust, forward looking climate foot printing.

Ø  Stewardship Policy complemented by a dedicated voting provision.

Ø  Product Offering driven by clear investment beliefs and rigorous strategy.

Ø  Capacity to Deliver and move towards best practice.

Ø  Culture at the London CIV, which supports the delivery of the Responsible Investment strategy.

Ø  Communications, which ensure a Responsible Investment strategy and associated priorities are disclosed with increased transparency.

Ms Jackson also gave a breakdown of the Funds that LCIV would launch and the initiatives that London CIV had committed to.

In the ensuing discussions, members raised a number of questions including the following:

Ø  The number of companies or fund managers within the LCIV remit that invested in or were owned by BAME groups and women.

Ø  How technological companies with good returns and low level of employees may be seen  to be not paying a fair level of tax, how that fitted in and reconciled with the concept of responsible investment.

Ø  Whether the focus was on social responsibility or payment of pensions to members.

Ø  With pressure ever increasing where divestment would fit into planning and whether there were potential dates for achieving targets for fossil free.

Ø  Mr Ravinder Jassar (Deputy Director of Finance) enquired as to when information on carbon and climate risk analytics would be available to the Sub-Committee.

In responding to the above, Ms Jackson stated that diversity was now a key issue for the corporate sector which LCIV had made it a priority in the year 2021.  The process had started with an extensive questionnaire developed for fund managers.  LCIV would collate the information received and then set achievable targets with stewardship a priority objective.  LCIV main focus was on financial returns for its members although social responsibility was equally a priority area.  She continued that LCIV would always seek to make an impact through certain engagements with companies and although no date for achieving net zero strategy had been set, LCIV would consider any investment adding value by collaborating with others.  Ms Jackson added that the information on carbon and climate risk analytics would be available to the Sub-Committee by May 2021.

The Board thanked Ms Jackson for the informative presentation.

Members welcomed the report and with no further issues raised, the Chair confirmed that all members had followed the discussions and thanked members and officers for their contribution.  It was RESOLVED:

That the report be noted.