Our recent consultation exercise on Derbyshire Pension Fund’s proposed Investment Strategy Statement, Responsible Investment Framework and Climate Strategy ended on 31 January 2024.
How we engaged
The Fund engaged with approximately 90,000 Local Government Pension Scheme (LGPS) members and over 340 employers who participate in the Fund to invite responses to the consultation.
Derbyshire residents also had the opportunity to respond to the consultation through Derbyshire County Council’s website.
The responses
By the end of the consultation period a total of 67 responses had been received which have all been considered carefully. We are grateful to each respondent for the time they committed to submitting their thoughts and comments on the proposed documents.
The responses received included:
- 42 from scheme members
- 22 from Derbyshire residents
- 1 from a participating employer
Most responses highlighted concerns about climate change with support for an increase in the pace of transition to a portfolio with net zero carbon emissions and support for divestment from fossil fuel related investments.
The responses included a proportion supporting the Fund’s increased targets for reducing the carbon exposure of the investment portfolio by 2030, as a significant step towards achieving a portfolio with net zero carbon emissions by 2050.
The revised Statement, Framework and Strategy
Having considered a report on the consultation responses at its meeting on 6 March 2024, Derbyshire County Council’s Pensions and Investments Committee decided to approve the proposed documents which were published for the consultation. The Committee is responsible for the management and administration of the Pension Fund on behalf of the Council as the administering authority of the Fund.
We’ve published the updated documents on our investment strategy, responsible investment framework and climate strategy pages.
As a result of the Committee’s decision, the headline targets set out in the documents are:
An increased allocation to Global Sustainable Equities, Infrastructure, Property & Multi-Asset Credit with a reduction in the Fund’s overall exposure to Equities.
The Global Sustainable Equities allocation focuses on global companies with sustainable environmental, social and governance (ESG) strategies and goals.
A reinforcement of the Fund’s Responsible Investment Framework
The Framework sets out the Fund’s approach to incorporating ESG factors into investment decisions and our approach to engagement and voting activities with the aim of enhancing long-term investment performance.
Increased targets for reducing the carbon exposure of the investment portfolio
The Climate Strategy includes a substantially increased target for investing in low carbon and sustainable investments by 2030.
You can find a more detailed summary of the targets on our consultation FAQs page.
Future reviews
Future reviews of each document will be subject to a period of consultation with the Fund’s stakeholders, which will be accessible through the Derbyshire County Council and Pension Fund websites.