Issue - meetings

10:50

This report will be the first of a regular report to update the Committee on progress in implementing the Climate Change Policy agreed at their meeting in June 2020.

The Committee is RECOMMENDED to:

(a)       note the report;

(b)       endorse the Fund applying to join the Climate Action 100+ initiative and The Institutional Investors Group on Climate Change.

Recommendations Agreed.

At the June 2020 meeting, the Pension Fund Committee agreed a Climate Change Policy Implementation Plan that set out how the fund will look to deliver against its Climate Change Policy. The Committee had before it a report (PF8) which was the first update on delivery against the implementation plan and will form a standing item on Pension Fund Committee agendas.

Mr Ley, introduced the report and in particular highlighted the actions taken in the last quarter outlined paragraphs 9 and 10 of the report.  Brunel were currently working with The Institutional Investors Group on Climate Change on the development of their Paris Aligned Investment Initiative. This piece of work aimed to explore how investors could align their portfolios with the goals of the Paris Agreement including methods for assessing alignment. Brunel were participating in testing the outputs of the work using data from their portfolios. It was hoped that the work would lead to the ability to assess alignment with the Paris Agreement across the Brunel portfolios.

Officers had investigated the various investor groups focusing on climate change that the Fund could join. At this stage it was recommended that the Pension Fund join the Climate Action 100+ initiative and The Institutional Investors Group on Climate Change. Both of these bodies were well established with clear goals that aligned with those of the Pension Fund and benefited from the support of a wide investor base.

Members were asked to note that Faith Ward, the Chief Responsible Investment Officer at Brunel was scheduled to attend the December 2020 meeting of this Committee when all the above issues could be discussed in more depth.  The Chairman asked the Committee to submit any questions they might have for the Chief Investment Officer to Sean prior to the Committee Meeting, so that she could armed with the answers to the questioned.

Councillor Roz Smith questioned whether Mr Ley had any comment from the statement from Hymans Robertson from the training in the morning around setting a target on Reserves.  Mr Ley commented that he was happy to look at reserves.  Brunel provided data around the Funds exposure to reserves on fossil fuel companies so it would be possible to set a target.  He undertook to provide a report on this area in the next update to the Committee.

RESOLVED:  to:

(a)       note the report;

(b)       endorse the Fund applying to join the Climate Action 100+ initiative and The Institutional Investors Group on Climate Change.