2023
Quarter 4
The Kent Pension Fund is pleased to announce that in December the Committee agreed a net zero target of 2050. Find out about the net zero commitment
Quarter 3
The Pension Fund have joined Pensions for Purpose (PfP), which is an organisation that provides significant knowledge and benefits in the area of impact investing (investments made with the intention to generate positive social and environmental impact alongside a financial return). PfP already has 10 other LGPS Funds signed up and Kent look forward to the benefits this new collaboration will provide.
Quarter 2
The Fund is currently working closely with our investment consultant, Mercer, to review the transition potential of the Fund’s investment portfolio so that a credible Net Zero target can be set in the near future. Once this target has been decided it will need to be approved by the Pension Fund Committee.
Quarter 1
Our responsible investment activities focused on active engagement with managers as part of the current voting season, with many companies hosting AGMs during this time.
Our engagement process was informed by the voting alerts provided to us as part of our membership with the Local Authority Pension Fund Forum (LAPFF). We were able to use our voice as an active owner to share the voting alerts with our managers, helping to inform their decisions and provide a different perspective on the proposed resolutions.
Our fund managers are also required to provide us with the rationale behind their votes, informing us of the due diligence which was carried out.
2022
Quarter 4
Working closely with the RI working group, officers successfully provided a response to the Government’s consultation, which sought views on proposals to require administering authorities of Local Government Pension Schemes (LGPS) to manage and report on governance and climate related risks and opportunities.
In addition, the Fund worked with Mercer to conduct a climate-scenario analysis, which helped to identify the associated physical and transition risks on our investments and the potential financial implications that these have on our investments.
Quarter 3
The Fund’s investment consultant, Mercer, provided results for the Carbon Footprint analysis as at 31 March 2022. The overall result outlined that the Fund’s carbon footprint is lower than the benchmark.
Following on from the results in the analysis, officers undertook an engagement exercise with our fund managers to understand how risk can be managed at a portfolio level, resulting in a lower carbon footprint in the future.
Quarter 2
The Fund’s RI working group engaged with Mercer to assess the Fund’s carbon footprint, at a listed equity and fixed income level.
Quarter 1
Members of the Pension Fund Committee and the Pension Board attended an environmental, social and governance (ESG) training session delivered by Mercer. This provided an overview of ESG to help develop the committees ESG beliefs and how they can integrate these considerations into the investment decision making process moving forward.
The Fund also agreed to become members of the Local Authority Pension Fund Forum (LAPFF) in February 2022. LAPFF is a non-profit making, voluntary association of 87 local authority pension funds and 7 LGPS Pools with assets around £300bn. The Forum aims to protect the investments of its members by promoting the highest standards of corporate governance and corporate social responsibility (i.e. responsible action by the companies in which its members invest) on ESG issues.