The London Pensions Fund Authority (LPFA), an £8 billion (US$10.44 billion) local government pension scheme fund, has asked stewardship solutions firm Minerva Analytics to provide additional insight into climate-related fund manager voting and rationale. Under the arrangement, Minerva will help the LPFA track how share voting decisions made on its behalf are aligned with the Net Zero Voting Guidance of the Institutional Investors Group on Climate Change (IIGCC). The LPFA is a member of the Paris Aligned Asset Owners, an international group of asset owners committed to supporting net zero by 2050 or sooner, supported by the 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. Voting rights are exercised by Local Pensions Partnership Investments (LPPI) as the delegated manager of the LPFA’s pooled global equities. Minerva’s analysis will provide the LPFA with independent evidence of how LPPI’s voting actions support common net zero priorities. “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,” said Paul Hewitt, LPFA’s Responsible Investment Manager. “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.” The partnership will also give the LPFA access to specialist ESG research which will support other aspects of its active ownership programme, including as a member of the IIGCC’s Net Zero Engagement Initiative. According to the LPFA’s most recent net zero progress report, the scheme has already reduced its emissions intensity by 75% compared its 2019 baseline, six years ahead of its 2030 fixed target.
