Jane Firth, Head of Responsible Investment, presented a report providing the Joint Committee with an update on the Responsible Investment activity undertaken by the company on behalf of Partner Funds since the period of the last meeting.

Particular attention was drawn to the issue of Modern Slavery and the company’s support of the Workforce Disclosure Initiative which aims to improve corporate transparency and accountability on workforce issues. Focus was also brought to the fact that it has been peak AGM voting season and that the company had voted against the Chair of several oil and gas companies due to their lack of progress on climate issues. It was also reported that the latest quarterly stewardship and voting reports were now published on the company’s website.

Members questioned the officer on the impact of Border to Coast voting against the Chair of companies they invest in and if this move was just focussed on gas and oil companies.

The Head of Responsible Investment detailed the impact voting against the Chair can have and the factors to consider when doing so and it was explained that the company’s Responsible Investment activity focussed on more than just climate related issues, such as human rights and workforce rights.

The Joint Committee asked whether the Responsible Investment strategy had led to Border to Coast pulling back investment in any companies. The officer said this had not happened and that holding engagement and using escalation procedures is a more effective way of facilitating positive change than removing investment.

Members queried how the impact of voting with Responsible Investment in mind could be measured and asked how Border to Coast’s voting record compared with its peers.

The Chair explained that a direct result, such as the resignation of chairs of companies Border to Coast votes against, is not the goal but that voting against the chair in line with the Responsible Investment strategy and doing so in a transparent way (pre-declaring) was an effective tool to influence positive change and send a clear message to those they invest with. The Chair of Border to Coast Pensions Partnership explained that company is considered progressive among peers due to Responsible Investment being an integral part of its functioning.

The Head of Responsible Investment added that the company monitors how external asset managers vote and use pre-declaration to influence their decisions but that some asset managers find it difficult to vote against a chair due to the fear of repercussions unlike asset owners who are beginning to follow the example of Border to Coast. It was explained that the company will publish a list of how they and, other asset managers and asset owners, voted at the end of the voting season and that this could lead to positive publicity for Border to Coast.

Members noted that this would be the last Joint Committee meeting attended by Jane Firth due to her forthcoming retirement and wished to thank her for her contribution to the work of the Partnership and wish her well for the future.

RESOLVED – to note the contents of the report