The Committee discussed a number of issues in a closed session, including a quarterly investment monitoring report, a general report, and reports on pooling considerations, climate risk and net zero, and engagement policy. The committee also noted the minutes of the previous meeting on the 16th of November 2023.

Storebrand Pre-Declaration of Voting

The Committee noted that Storebrand, the Norwegian financial services group who manage one the Council's low carbon equity mandates, has begun pre-declaring its voting intentions five days ahead of shareholder meetings.

London CIV Shareholder Representative

The Committee noted the appointment of Councillor Sian Eiles as Lewisham's shareholder representative at the London CIV's Annual General Meeting. Councillor Louise Krupski will be the alternate representative. The London CIV is a fund manager owned by a number of London Boroughs, including Lewisham. Lewisham invests some of its pension fund in various London CIV funds.

Pension Fund Risk Register

The Committee reviewed the Council's Pension Fund Risk Register 2024-25. This document uses a traffic light system to track the likelihood of a range of risks to the pension fund, the likely impact if those risks were to become reality, and the Council's mitigation plans for those risks. The register is based on a template provided by The Pensions Regulator.

Since the last risk assessment, the ESG¹ risk rating has been increased, because:

by following investments that meet higher ESG criteria (protection of consumers, labour rights, diversity and inclusion policies, human rights, health and safety etc.) there is a risk that the pension fund will obtain lower investment returns.

The fraud risk rating has been reduced because no issues were identified during recent internal and external audits.

Pension Board

The Committee received an update on the last meeting of the Lewisham Pension Board, which took place on the 11th of March 2024. The Board's work programme for the next quarter was also noted.

Training

The Committee discussed the Pension Regulator's new code of practice and noted that they will need to update their training needs assessments by the end of October 2024 to comply with best practice guidelines.

Business Plan

The Committee reviewed and noted the Pension Fund's Draft Business Plan for 2024/25. This document sets out the Committee's workplan for the year ahead. It lists all the policies and reports that will need to be reviewed over the next three years. It also includes a list of all of the training courses and conferences that members of the Committe might like to attend.