Agenda and minutes

Apologies for absence were received from Roger Buttery and Councillors P Ashleigh-Morris and S Bunney.

Councillor M G Allan declared an interest as a pensioner member of the Pension Fund.

Councillor P Key (District Councils Representative) declared an interest as a pensioner member of the Pension Fund.

Steve Larter (Small Scheduled Bodies Representative) declared an interest as an active and deferred member of the Pension Fund.

Jo Balchin (Scheme Member Representative) declared an interest as an active member of the Pension Fund.

Tom Hotchin (Academy Sector Representative) declared an interest as an active member of the Pension Fund.

RESOLVED

That the minutes of the meeting held on 12 October 2023 be approved as a correct record and signed by Chairman.

(To receive a report from Claire Machej, Accounting, Investment and Governance Manager, which provides the Committee with an update on Responsible Investment activity during the second quarter of the financial year 2023/24)

Consideration was given to a report presented by the Accounting, Investment and Governance Manager which provided the Committee with an update on Responsible Investment activity during the second quarter of the financial year 2023/24. Attention was drawn to the investing and voting activity of Border to Coast Pensions Partnership and the outcomes achieved through the LAPFF Engagement.

The Committee noted the report and were satisfied with the content.

RESOLVED

That the Responsible Investment activity undertaken during the quarter be noted.

(To receive a report from Jo Kempton, Head of Pensions, which highlights the changes to Border to Coast’s Responsible Investment (RI) Policy and Corporate Governance and Voting Guidelines for consideration since the last time it was reviewed)

The Committee received a report from the Head of Pensions, which highlighted the changes to Border to Coast’s Responsible Investment (RI) Policy, Corporate Governance and Voting Guidelines, and Climate Change Policy. The following matters were highlighted:

·       Changes to the RI and Climate Change policies were outlined.

·       The Committee were being asked to consider aligning Lincolnshire Pension Fund’s RI Policy and Corporate Governance and Voting Guidelines to those that had now been agreed by Border to Coast as the manager of the pension pool.

·       Border to Coast had undergone a rigorous review process, as described in the report, in arriving at the changes made to their policies and guidelines.

·       There was an upcoming regulatory requirement for Local Government  pension funds to present climate and net zero reporting.

·       Barnett Waddingham was due to present a training session to the Committee on climate and net zero reporting next year.

The Committee discussed the report, and the following comments were raised:

·       Diversity and climate change considerations for RI were not legal obligations for the Fund at this time but were considered best practice. However, Task Force on Climate-related Financial Disclosures (TCFD) reporting, which was mandated for the private sector, was soon to become a regulatory requirement for Local Government pension funds.

·       Considering material environmental, social and governance (ESG) issues ensured that investments prioritised companies that evidenced their sustainability over the long term, therefore reducing the risk to the Fund.

The Committee felt that further evidence was needed to demonstrate the benefits of considering ESG aspects when investing in terms of maximising returns. It was advised that information concerning this matter would be shared with the Committee.

RESOLVED

1. That the Committee consider the proposed Border to Coast Responsible Investment Policy, Corporate Governance and Voting Guidelines, and Climate Change Policy.

2. That the Committee agree to align the Lincolnshire RI Policy and Corporate Governance and Voting Guidelines to Border to Coast's.

3. That information on the benefits of considering ESG aspects when investing in terms of maximising returns be shared with the Committee.

In accordance with Section 100 (A)(4) of the Local Government Act 1972, the following agenda items have not been circulated to the press and public on the grounds that they are considered to contain exempt information as defined in paragraph 3 of Part 1 of Schedule 12 A of the Local Government Act 1972, as amended. The press and public may be excluded from the meeting for the consideration of these items of business.

RESOLVED

That in accordance with Section 100A of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business on the grounds that if they were present they could be a disclosure of exempt information as defined in paragraph 3 of Part 1 of Section 12A of the Local Government Act 1972, as amended.

(To receive an exempt report from Claire Machej, Accounting, Investments and Governance Manager, which provides a market update from the Investment Consultant for the quarter ending 30 September 2023)

Consideration was given to an exempt report on which presented a market update to the Committee.

Questions were raised by the Committee and discussed.

RESOLVED

That the exempt report be noted.

(To receive an exempt report from Claire Machej, Accounting, Investment and Governance Manager, which provides an update on investment performance)

Consideration was given to an exempt report on investment and manager performance.

Questions were raised by the Committee and discussed.

RESOLVED

That the exempt report be noted.

(To receive an exempt report from Claire Machej, Accounting, Investment and Governance Manager, which introduces a presentation from Border to Coast Pensions Partnership)

Consideration was given to an exempt report which introduced a manager presentation from Border to Coast.

Questions were raised by the Committee and discussed.

RESOLVED

That the exempt report be noted.