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.

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 on electricity sourcing and costs, and disclosure of community engagement outcomes. A report on electricity-related transition costs would be presented at the July LAPFF business meeting.

In noting that the report had been subject to detailed review at the Brent Pension Fund Sub Committee on 8 October 2025 the Board RESOLVED to note the report and update on LAPFF engagement activity.