The Director of Pensions introduced a report in respect of MPF’s investments in companies that are alleged to be facilitating the construction and continued existence of Israeli settlements in the Occupied Territories of Palestine, which set out developments since consideration of previous report on the matter at Committee in February 2022, alongside several actions to develop ways to manage and respond more effectively to questions on responsible investment issues. Outlining the principal developments, members were asked to note the work of the National Scheme Advisory Board in meeting with the UN Special Rapporteur, ongoing engagement activity by the Local Authority Pensions Board Forum, and proposed legislation by Government in relation to Boycotts, Divestments and Sanctions. In addition, Members were informed that MPF had become a signatory to the UN’s Principles of Responsible Investment (UNPRI) Advance initiative on human rights stewardship, and that the Fund had appointed Strategic Advisors, Redington, who, amongst other things, would be undertaking work on enhancing the Fund’s Stewardship and Responsible Investment activities.

The Director of Pensions clarified that paragraph 9.3 of the report was incomplete and was too narrowly worded. Whilst it was important to recognise tensions when exploring controversial responsible investment issues, it was acknowledged this should had been done in general terms.

Members of the committee discussed how Pension Fund members could be consulted on issues of responsible investment and what a mechanism for consultation could look like in order to ascertain views of a representative sample of members. Whilst it was noted that the Pensions Committee was the democratic voice for the Pension Fund’s various stakeholders, and there was provision for Trade Union representation on the Committee, there was an opportunity to develop greater engagement with Fund Members through the work with Redington. Members noted that it was important to develop a clear framework for addressing issues of responsible investment in order to make fully informed decisions. Members also discussed implications of responsible investment and investment in arms companies.

Resolved – That the activities and actions detailed in the report be supported.