The London Pensions Fund Authority (LPFA), a £8bn (€9.5bn) local government pension scheme (LGPS), has appointed Minerva Analytics to provide additional insight into fund manager use of share voting rights and the rationale behind voting decisions.

The appointment forms part of the LPFA’s net zero commitment as a signatory to the Paris Aligned Asset Owners (PAAO) initiative.

The LPFA will use Minerva to provide an understanding of how share voting decisions made on its behalf are aligned with the Net Zero Voting Guidance of the Institutional Investor Group on Climate Change (IIGCC).

As a part of the service, Minerva will develop a bespoke voting policy which aligns with the LPFA’s net zero objectives and targets to decarbonise real world emissions.

The Authority said that its voting rights are exercised by Local Pensions Partnership Investments (LPPI) as delegated manager of the LPFA’s pooled global equities and Minerva’s analysis will provide the fund with independent evidence of how LPPI’s voting actions support common net zero priorities.

It added that the voting policy will then be used to generate analysis of each vote LPPI undertakes at each shareholder meeting.

Paul Hewitt, responsible investment manager at LPFA, said the UK Stewardship Code “calls on asset owners like us” to monitor their asset managers so “it’s essential that we can evidence how our investments are managed in alignment with our stewardship strategy and policies”.

He added: “Our strong commitment to net zero and good stewardship means we have a responsibility to make sure we do our bit to understand how our managers are aligning with that commitment and we take these responsibilities seriously.

“This partnership with Minerva will support us in doing that systematically and it’s an important step for us in preparing for alignment with the Stewardship Code in future.”

The partnership will also give the LPFA access to specialist ESG research that will support other aspects of its active ownership programme, including as a member of the IIGCC’s Net Zero Engagement Initiative.

Read the digital edition of IPE’s latest magazine

Pamela is IPE's UK correspondent. Before joining IPE in May 2023, she spent five years writing about the insurance industry. During her career so far she won awards for Most Promising Newcomer in 2020 and Best Investigative Article in 2022 from the British Insurance Brokers Association, and was also highly commended at the WTW Media Awards for Insurance Features Journalist of The Year.View full Profile

More from Pamela Kokoszka

Topics