Miriam Adams, Interim Head of Pensions and Treasury, introduced the report setting out an update on the stewardship activity carried out by Tower Hamlets Pension Fund’s investment managers (and on its behalf by Local Authority Pensions Fund Forum (LAPFF). It was noted that as a long-term steward of assets, ensuring good governance and sustainable business models was important in securing better returns to the Fund.

The Committee had a responsibility to take into account where the Fund was investing, how investments were performing and how companies were treating suppliers, staff, the environment and so on. Sometimes the Fund could vote directly with its shares but often this would be through the London CIV/Fund Manager etc.

In discussing the report, the Committee noted a number of points, including:

·       It had been a quiet quarter in terms of AGMs with only two taking place.

·       The Fund was at the forefront of looking to tackle climate issues. The Fund had a Net Zero commitment and a net zero plan.

·       A number of environment related reports would be coming to Committee later in the year including on Net Zero and the Fund’s Carbon Footprint.

The Committee agreed to note the report and it was:

RESOLVED

1.    To note the report.

Ms Miriam Adams, Interim Head of Pensions and Treasury presented the ESG, Voting, Engagement and Stewardship update report. She said the report provided an overview of the activities carried out by the Tower Hamlets Pension Fund’s investment managers and on its behalf by the Local Authority Penson Forum (LAPFF) in the quarter ending March 2023.

Ms Adams commented the quarter had been a quite one. She said the report was limited to the companies that the Pension Fund was invested in.

In response to comments and questions from members the following was noted:

·       Mr Gray stated LAPFF had declared an international garment workers day to improve the working conditions of workers and the supply chain.

·       Mr Thompson stated he was pleased to see there had been dialogue with Amazon. He said whilst the LAPFF initiative was good, working conditions in the UK also required improvement.

·       Ms Adams stated the LBTH Pensions Fund had been the main driver for improving relations with LCIV and voting patterns.

The Pensions Board RESOLVED to:

Note the recommendations made to the Pensions Committee who will consider this report at its meeting of 3rd July 2023, that:

The Pensions Committee is recommended to:

1.    Note content of this report and appendices.