The Pension Committee of Gloucestershire Council met on Thursday 13 June 2024 to discuss various matters related to the funding, investment, governance, and operations of the Gloucestershire Pension Fund. Key decisions included the approval of the Responsible Investment Policy and the review of the annual analytics for climate change.

Responsible Investment Policy

The Committee approved the Responsible Investment Policy, which aims to integrate environmental, social, and governance (ESG) factors into the investment process. The policy was developed to ensure that the fund's investments align with its long-term sustainability goals. The policy will be reviewed annually to adapt to evolving best practices and regulatory requirements. Councillor Lynden Stowe, Chair of the Committee, emphasised the importance of this policy, stating:

Integrating ESG factors is not just about ethical considerations; it’s about ensuring the long-term viability and performance of our investments. ¹

Annual Review of Analytics for Climate Change

The Committee reviewed the Annual review of Analytics for Climate Change and the accompanying ACT Analysis. The review highlighted the fund's progress in reducing its carbon footprint and aligning its investments with the goals of the Paris Agreement. The Committee noted that while significant progress had been made, ongoing efforts were required to meet future targets.

Audit Plan 2023-24

The Committee discussed the Audit Plan for 2023-24 and its Appendix 1. The plan, prepared by KPMG, outlines the scope and objectives of the audit, focusing on key risk areas and compliance with regulatory standards. The Committee approved the audit plan, acknowledging its role in ensuring the fund's financial integrity and transparency.

Pension Fund Draft Financial Statements 2023-24

The Committee reviewed the Pension Fund Draft Financial Statements for 2023-24 and its Appendix 1. The statements provide a comprehensive overview of the fund's financial performance, including contributions, benefits paid, and investment returns. The Committee noted the positive financial position of the fund and approved the draft statements for submission to the external auditor.

Risk Register

The Committee reviewed the Risk Register and its Appendix 2. The register outlines the key risks facing the fund and the measures in place to mitigate them. The Committee noted that Risk 6 had returned to target with the successful onboarding of the Pension Investment & Accounting Manager. However, Risk 2 remained above target until the successful deployment of the training strategy/plan. The Committee requested that Contract Management be included as a risk in future updates.