Responsible Investment

Approach to Responsible Investment

The Pension Fund believes that Responsible investment is supportive of risk-adjusted returns over the long term. As a long-term investor, the Fund seeks to invest in assets with sustainable business models across all asset classes.

Investee companies and asset managers with robust governance structures should be better positioned to handle the effects of shocks and stresses of future events. Responsible investment is integrated into the investment processes of the Fund, the Pool, and underlying investment managers. Social, environmental and corporate governance considerations are taken into account in the selection, non-selection, retention and realisation of investments. Non-financial factors may only be considered to the extent that they are not significantly detrimental to the investment return and the Committee is satisfied that members share their concerns. The Fund believes that a strategy of engagement rather than exclusion is more compatible with fiduciary duty and is more supportive of responsible investment.

It is recognised that Environmental, Social, and Governance (“ESG”) factors are important to long term investment performance and the ability to achieve long term sustainable returns. The Pension Fund Committee considers the Fund’s approach to ESG in three key areas:

  • Selection – considering the financial impact of ESG factors on its investments.
  • Stewardship – acting as responsible and active owners, through considered voting of shares and engaging with investee company management as part of the investment process. The Committee supports the Stewardship.
  • Transparency & Disclosure – commitment to reporting the outcomes of the Fund’s stewardship activities.

In combination these three matters are often referred to as “Responsible Investment” or “RI” and this is the preferred terminology of the fund. Effective management of financially material ESG risks should support the requirement to protect investment returns over the long term.

Our pool company, LGPS Central Ltd has a fully developed set of RI policies, which are in line with the Committee’s own investment beliefs. This includes a Responsible Investment & Engagement Framework, a Statement of Compliance with the UK Stewardship Code, and Voting Principles. The Fund, through the Pool’s Practitioners Advisory Forum, contributes to the development of these policies. As the Fund transfers assets to it, LGPS Central Ltd will take responsibility for ensuring that underlying managers meet with the requirements of this policy. LGPS Central Ltd will also engage directly with investee companies to promote sustainable business practices that reward long-term investors. Voting rights associated with assets invested through LGPS Central Ltd sub funds will be instructed according to the Pool’s agreed Voting Principles. LGPS Central Ltd reports its RI policy and activity on a regular basis in order to demonstrate the implementation of the agreed RI policies.

Policy on the exercise of the rights (including voting rights) attaching to investments

Membership of the Local Authority Pension Fund Forum (LAPFF) helps Nottinghamshire Pension Fund to engage with companies to understand issues and to promote best practice. LAPFF was set up in 1990 and is a voluntary association of the majority of Local Authority pension funds based in the UK with combined assets of over £200bn. It exists to protect the long term investment interest of local authority pension funds, and to maximise their influence as shareholders by promoting the highest standards of corporate governance and corporate responsibility amongst investee companies.

News and Engagement

15 Jul 2021

Schroders

Sustainable Investment Report Q2 2021

30 Jun 2021

LGPS Central

Quarterly Stewardship Update Q1 2021-22

30 Jun 2021

LAPFF

Quarterly Engagement Report April-June 2021 [PDF]

14 May 2021

LGPS Central

Annual Stewardship Report 2020

25 Apr 2021

Schroders

Sustainable Investment Report Q1 2021

1 Apr 2021

Pantheon

ESG and Corporate Responsibility
at Pantheon

31 Mar 2021

LGPS Central

Quarterly Stewardship Update Q4 2020-21

31 March 2021

LGIM

Q1 2021 ESG Impact Report [PDF]

31 March 2021

LAPFF

Quarterly Engagement Report January-March 2021 [PDF]

25 Mar 2021

Partners Group

Corporate Sustainability Report 2020

1 Mar 2021

LAPFF

Protecting pensions against climate risk exposure

19 Jan 2021

Schroders

Sustainable Investment Report Q4 2020

1 Jan 2021

Coller Capital

ESG Report 2020

31 Dec 2020

Schroders

Environmental, Social and Governance Policy for Listed Assets December 2020 [PDF]

31 Dec 2020

LGIM

Q4 2020 ESG Impact Report [PDF]

31 Dec 2020

LGPS Central

Quarterly Stewardship Update Q3 2020-21

31 Dec 2020

LAPFF

Quarterly Engagement Report October-December 2020 [PDF]

20 Nov 2020

LGPS Central

LGPS Central Joint Committee

Public Questions and responses

15 Oct 2020

Schroders

Sustainable Investment Report Q3 2020

15 Oct 2020

LGIM

Climate Impact Pledge

30 Sep 2020 State Street

Achieving Carbon Neutrality - Sustainability Lessons through the COVID-19 Crisis

30 Sep 2020 LAPFF

Quarterly Engagement Report July-September 2020 [PDF]

30 Sep 2020 LGIM

Q3 2020 ESG Impact Report [PDF]

30 Sep 2020

LGPS Central

Quarterly Stewardship Update Q2 2020-21

1 Aug 2020

MIRA

MIRA - Infrastructure Sustainability Report

20 Jul 2020

Schroders

Sustainable Investment Report Q2 2020

13 Jul 2020

Capital Dynamics

Responsible Investment at Capital Dynamics - Annual Report 2019/2020 [PDF]

30 Jun 2020

LAPFF

Quarterly Engagement Report April-June 2020 [PDF]

30 Jun 2020

LGPS Central

Quarterly Stewardship Update Q1 2020-21

30 Jun 2020

LGIM

Q2 2020 ESG Impact Report [PDF]

1 Jun 2020

Federated Hermes

Responsibility Report 2020 [PDF]

1 Jun 2020

Impax

Engagement Report 2020 [PDF]

11 May 2020

LGPS Central

Quarterly Stewardship Report Q4 2019-20 [PDF]

6 May 2020

LAPFF

Press release: LAPFF Supports First Ever Climate Resolutions at Barclays [PDF]

23 Apr 2020

LGIM

Active Ownership 2020

23 Apr 2020

Capital Dynamics

'Green Certificate' from Capital Dynamics relating to Nottinghamshire Pension Fund's investment in the Clean Energy Infrastructure VIII fund as at 31 Dec 2019

22 Apr 2020

Schroders

Sustainable Investment Report Q1 2020

31 Mar 2020

LAPFF

Quarterly Engagement Report January-March 2020 [PDF]

 

31 Mar 2020

LGIM

Q1 2020 ESG Impact Report [PDF]

11 Feb 2020

LGPS Central

Quarterly Stewardship Report Q3 2019-20 [PDF]

30 Jan 2020

Schroders

Sustainable Investment Report Q4 2019

29 Jan 2020

LAPFF

Modern Slavery Statement [PDF]

31 Dec 2019

State Street

2019 Corporate Responsibility Report

31 Dec 2019

LAPFF

Quarterly Engagement Report October-December 2019 [PDF]

31 Dec 2019

LGIM

Q4 2019 ESG Impact Report [PDF]

21 Oct 2019

Schroders

Sustainable Investment Report Q3 2019

03 Sep 2019

NCC

Letter from Nottinghamshire County Council on the subject of fossil fuel development [PDF]