This meeting of the Pension Fund Investment & Administration Panel included the presentation of several reports about the performance and management of the Royal Borough of Greenwich Pension Fund. Councillors were also scheduled to discuss the Fund’s progress towards its target of being carbon neutral by 2040. Additionally, there was a proposed update to the Fund's Knowledge and Understanding Skills Policy and Framework.

Net Zero Roadmap Update

This topic concerned the Fund’s progress towards its target of being carbon neutral by 2040. The report pack included an updated roadmap setting out what steps the Fund intends to take to reduce its carbon emissions in the short and medium term. The Fund made a commitment to reach net zero carbon emissions in 2022, and the report pack identifies some of the work the Fund has undertaken in this regard. This included:

• The establishment of a dedicated Responsible Investment (RI) Policy.
• The introduction of a programme to monitor investment managers, in which managers are invited to each meeting of the Pension Board to present on ESG-related themes, including net zero, and stewardship activities.
• The commitment of £42.5m to the London Collective Investment Vehicle’s (LCIV) Renewable Infrastructure Fund¹.
• The investment of 14% of the Fund’s assets in a low carbon global equity mandate with Legal & General Investment Management, which achieved a c50% reduction in carbon emissions relative to the fund originally held.

Pension Fund Carbon Footprint Data 31 March 2024

The report pack included a report on the Fund’s carbon footprint, as assessed by the LCIV. Data was available on approximately 78% of the value of the Fund's assets. The report shows that since 2022 there has been a reduction in the carbon intensity of the Fund's investments. The report also claims that the Fund is now aligned with the objectives of the Paris Agreement.

Knowledge and Understanding Policy and Framework

Councillors were scheduled to consider whether to update the Fund’s Knowledge and Understanding Policy and Framework. The report pack states that the current framework was agreed in July 2023, and sets out the training that Councillors and Officers involved in the management of the Fund should have. It is based on the CIPFA Code of Practice on LGPS Knowledge and Skills, which was updated in 2021.

Fund Manager Performance to 30 June 2024

The agenda included the presentation of a report on the performance of the Fund's investments, from the beginning of April to the end of June 2024. The report pack summarises the performance of each of the organisations appointed to manage the Fund's assets, including BlackRock, CBRE, Fidelity International, LGIM, the LCIV, Partners Group and Wilshire. The report also summarises the Fund's asset allocation as at 30 June 2024, including details of the mandates given to the Fund's managers.

Annual Report of the Pension Board 2023/24

The agenda included a report asking the Panel to note the Annual Report of the Royal Greenwich Local Pension Board, for the year 2023/24. The Pension Board is a statutory body that was created by the Public Service Pensions Act 2013. Its job is to assist the Council in its role of managing the Fund. The Board consists of two Councillors and two employer representatives. In 2023/24 the Councillors on the Board were Councillor Nick Williams, who is the Chair of the Board, and Councillor Issy Cooke. The report pack also includes the Board's Business Plans for 2023/24 and 2024/25.

LCIV Update on Operations and Performance

The agenda included the presentation of an update from the LCIV on its operations and performance. The LCIV is a fund manager that manages the investments of several Local Government Pension Schemes, including that of Greenwich Council.