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PrintCIPFA, UKSIF and the LAPFF launch responsible investment self-assessment framework
An innovative Responsible Investment Self-Assessment Template for local government pension scheme funds was launched at the Local Authority Pension Fund Forum (LAPFF) annual conference on 30 November.
The template highlights the increased importance of long term responsible investment (LTRI) and environmental, social and governance (ESG) issues for local government funds.
Mike Taylor, Chief Executive of the LPFA and CIPFA Pensions Panel members, worked with the UK Social Investment Forum (UKSIF) and LAPFF to produce the self assessment template on LTRI and ESG Issues.
The template is based on the “Key Lines of Enquiry” (KLOE) methodology used by the Audit Commission and is intended as a tool to take those charged with fund management through key responsible investment issues. Funds can be ranked at four levels, where level 1 is weak, level 2 is fair, level 3 is good and level 4 is leading to best practice.
The template is published in the UKSIF report Local Government: Responsible Pension – Assessing responsible investment leadership by Local Government Pension Schemes. The report uses the template and the views of key opinion formers to assess the responsible investment performance of local government funds.
In its ranking, UKSIF concluded that:
- only the Environment Agency Pension Fund demonstrates best practice at level 4
- approximately 10% of the funds rank at Level 3
- the remaining funds are divided fairly evenly between Levels 2 and 1
The report has been produced as part of UKSIF’s Sustainable Pensions Project (SPP) that seeks to encourage the 99 local authority pension schemes to consider environmental and social issues in their investment decisions.
Copies of the report and the template can be downloaded below:
- UKSIF Report (PDF size:2167KB)
- ESG self-assessment template (PDF size:429KB)