Agenda item

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 available publicly, they would follow up with the LAPFF on their activity in this area with further detail also requested on the outcomes being achieved in relation to the nature of changes being made in response to the engagement process being undertaken

With no further questions or comments, the Sub Committee thanked officers for the update and RESOLVED to note the report.