Hampshire County Council
Councillors:
78
Wards:
76
Committees:
49
Meetings (2026):
57
Meetings (2025):
155
Meeting
Hampshire Pension Fund Responsible Investment Sub-Committee - Hampshire
Meeting Times
Scheduled Time
Start:
Friday, 6th March 2026
10:00 AM
Friday, 6th March 2026
10:00 AM
End:
Friday, 6th March 2026
2:00 PM
Friday, 6th March 2026
2:00 PM
Meeting Status
Status:
Confirmed
Confirmed
Date:
06 Mar 2026
06 Mar 2026
Location:
Chute Room - HCC
Chute Room - HCC
Meeting Attendees
Committee Member
Phillip Reynolds
Scheme Member Representative
Present, as expected
Co-opted Deputy
Councillor Judith Smyth
Employer Representative - Portsmouth City Council
Expected
Committee Member
Councillor Simon Letts
Southampton City Council
Present, as expected
Co-opted Deputy
Simon Walker
Scheme Member Representative - Deferred
Expected
Agenda
1
Apologies
To receive any apologies for absence.
Minutes
Apologies were received from Councillor David Harrison and Councillor Rob Mocatta, with Councillor Tim Davies attending as substitute.
Mr Simon Letts was in attendance as an observer.
Mr Simon Letts was in attendance as an observer.
2
Declarations of Interest
All Members who believe they have a Disclosable Pecuniary Interest in any matter to be considered at the meeting must declare that interest and, having regard to Part 3 Paragraph 1.5 of the County Council's Members’ Code of Conduct, leave the meeting while the matter is discussed, save for exercising any right to speak in accordance with Paragraph 1.6 of the Code. Furthermore all Members with a Personal Interest in a matter being considered at the meeting should consider, having regard to Part 5, Paragraph 4 of the Code, whether such interest should be declared, and having regard to Part 5, Paragraph 5 of the Code, consider whether it is appropriate to leave the meeting while the matter is discussed, save for exercising any right to speak in accordance with the Code.
Minutes
Members were mindful that where they believed they had a Disclosable Pecuniary Interest in any matter considered at the meeting they must declare that interest at the time of the relevant debate and, having regard to the circumstances described in Part 3, Paragraph 1.5 of the County Council's Members' Code of Conduct, leave the meeting while the matter was discussed, save for exercising any right to speak in accordance with Paragraph 1.6 of the Code. Furthermore Members were mindful that where they believed they had a Non-Pecuniary interest in a matter being considered at the meeting they considered whether such interest should be declared, and having regard to Part 5, Paragraph 2 of the Code, considered whether it was appropriate to leave the meeting whilst the matter was discussed, save for exercising any right to speak in accordance with the Code.
No declarations of interest were made.
No declarations of interest were made.
3
Minutes of the previous meeting
To confirm the minutes of the previous meeting held on 21 September 2025.
Attachments:
Minutes
The minutes of the previous meeting held on 5 September 2025 were confirmed as an accurate record.
4
Deputations
To receive any deputations.
Minutes
The Sub-Committee received a deputation from Stephanie Lewis, on item 6 of the agenda, Scheme Member Communications, regarding Pension Fund disinvestment and human rights issues.
5
Chairman's Announcements
To receive any announcements the Chairman may wish to make.
Minutes
The Chairman noted this was the final meeting of the current electoral term and thanked members for their contributions.
6
Scheme Member Communications
To receive a report from the Director of Corporate Operations updating the Sub-Committee on communication to and from scheme members since its last meeting.
Attachments:
- Document PFRIS Scheme Communication Report 26 Feb 2026
- Document Responsible Investment Annual Update 2026 26 Feb 2026
Minutes
The Sub?Committee received a report from the Director of Corporate Operations, providing an update on communications with scheme members since the previous meeting.
It was noted that the majority of recent correspondence had related to the conflict in Gaza, with scheme members seeking clarity on how Responsible Investment (RI) considerations were being applied. Communications had also been received regarding the Fund’s recent RI survey, future consultation activity, and issues connected to the governance of investment decision?making.
Officers drew attention to the latest RI update accompanying the report, which highlighted actions taken over the past year including improvements in the Fund’s climate?related monitoring.
The Sub?Committee was informed that the report included an update on the list of investments referenced by the Palestinian Solidarity Campaign (PSC), together with an explanation of the ongoing monitoring being undertaken by officers. In response to Members questions, it was confirmed that the Fund had undertaken steps to verify that it held no investments in controversial weapons.
During discussion, Members sought greater understanding of the nature of the investments appearing on the PSC list, particularly the distinction between holdings in the Fund’s passive and active portfolios. Officers confirmed that approximately one?third of the Fund’s total equity holdings were invested passively and explained that such holdings are determined by index composition rather than active selection, therefore passive investments accounted for 44 companies on the PSC list of companies, versus only 22 companies held in active portfolios.
Members also discussed the limitations and complexities involved in implementing exclusions more broadly. Whilst there was considerable sympathy for the concerns raised by campaigners, many of the companies included on the PSC list were involved in large global supply chains, and few of the specific companies cited were held within the Fund’s actively managed portfolios.
Members recognised the importance of ensuring that any approach adopted by the Fund could be effectively delivered within the Local Government Pension Scheme (LGPS) pooling framework, noting significant new direction from the Government in draft guidance published in December 2025 that clarified whilst Administering Authorities remain responsible for setting their own RI approach, but ‘the RI approach should not set exclusions for investments in individual countries, investment styles or companies’.
RESOLVED:
That the sub-committee note the communication received from scheme members on Responsible Investment (RI) and that the Pension Fund will publish its sixth annual RI update for scheme members.
It was noted that the majority of recent correspondence had related to the conflict in Gaza, with scheme members seeking clarity on how Responsible Investment (RI) considerations were being applied. Communications had also been received regarding the Fund’s recent RI survey, future consultation activity, and issues connected to the governance of investment decision?making.
Officers drew attention to the latest RI update accompanying the report, which highlighted actions taken over the past year including improvements in the Fund’s climate?related monitoring.
The Sub?Committee was informed that the report included an update on the list of investments referenced by the Palestinian Solidarity Campaign (PSC), together with an explanation of the ongoing monitoring being undertaken by officers. In response to Members questions, it was confirmed that the Fund had undertaken steps to verify that it held no investments in controversial weapons.
During discussion, Members sought greater understanding of the nature of the investments appearing on the PSC list, particularly the distinction between holdings in the Fund’s passive and active portfolios. Officers confirmed that approximately one?third of the Fund’s total equity holdings were invested passively and explained that such holdings are determined by index composition rather than active selection, therefore passive investments accounted for 44 companies on the PSC list of companies, versus only 22 companies held in active portfolios.
Members also discussed the limitations and complexities involved in implementing exclusions more broadly. Whilst there was considerable sympathy for the concerns raised by campaigners, many of the companies included on the PSC list were involved in large global supply chains, and few of the specific companies cited were held within the Fund’s actively managed portfolios.
Members recognised the importance of ensuring that any approach adopted by the Fund could be effectively delivered within the Local Government Pension Scheme (LGPS) pooling framework, noting significant new direction from the Government in draft guidance published in December 2025 that clarified whilst Administering Authorities remain responsible for setting their own RI approach, but ‘the RI approach should not set exclusions for investments in individual countries, investment styles or companies’.
RESOLVED:
That the sub-committee note the communication received from scheme members on Responsible Investment (RI) and that the Pension Fund will publish its sixth annual RI update for scheme members.
7
Stewardship Highlight Report
To receive a report from the Director of Corporate Operations providing information regarding the Pension Fund’s investment managers’ stewardship of the Pension Fund’s assets.
Attachments:
- Document PFRIS Stewardship Report 26 Feb 2026
- Document UK Stewardship Code Compliance Statement 26 Feb 2026
Minutes
The Sub-Committee received a report from the Director of Corporate Operations detailing the stewardship activities of the Pension Fund’s investment managers.
It was noted that there had been a slight improvement in the Fund’s Principles for Responsible Investment (PRI) assessment scores, and the report identified actions that the Fund could take to further increase its scores. The report also presented the annual stewardship code report which was produced in line with the new updated guidance. It was highlighted that since 2026 is the first year under the updated 2026 guidance, existing signatories who submit a renewal application will automatically retain their signatory status.
The Sub?Committee also considered the issues of modern slavery and child labour, which had been identified as a priority concern by scheme members in the Fund’s most recent RI survey. Officers outlined a recommended action for the Fund to endorse the PRI’s “Advance Project”, a collaborative engagement initiative aimed at improving human rights and social?issue outcomes at investee companies. It was noted that LGPS Central was already a collaborating investor, and that there would be no cost to the Fund for participation.
A significant element of the discussion centred on the proposal for Hampshire Pension Fund to become a member of the Local Authority Pension Fund Forum (LAPFF). Joining LAPFF would cost £12,000, for 2026–27, but would align the Fund with the Central pool and its partner funds, together with the majority of other administering authorities, as almost all local government pension schemes were already members. Officers highlighted advantages of membership, including access to enhanced research, coordinated engagement opportunities, and reassurance to Central that Hampshire was fully participating in collective stewardship work.
Members reviewed examples of voting and engagement activity, including instances where investment managers had voted against company management on climate?related or governance issues. The Sub?Committee also noted examples of ongoing engagement with companies on issues likely to be of particular interest to scheme members.
The Chairman thanked officers for the comprehensive report and Members for the thorough discussion.
RESOLVED:
1.That the Pension Fund Responsible Investment Sub-Committee note the report, including:
· The Fund’s annual compliance report with the UK Stewardship Code. This report will be used as Hampshire’s submission to reapply to the Financial Reporting Council (FRC) for membership of the Code.
· The Principles for Responsible Investment’s (PRI) Assessment Report 2025 which rated the Pension Fund at 4* (out of 5) across 8 of the overall 9 categories. This reflected an increase in the score for 5 categories under review.
· How the Pension Fund’s investment managers have voted in the Fund’s portfolios and engaged with the management of these companies as highlighted in this report, and the progress that has been made in respect of excluding controversial weapons from the portfolio.
2.That the Pension Fund Responsible Investment Sub-Committee recommend to the Pension Fund Panel and Board that:
· Hampshire Pension Fund joins the Local Authority Pension Fund Forum (LAPFF).
· The Pension Fund Panel approve the Fund’s proposed 2026 PRI assessment report on 17 July 2026, prior to submission by 31 July 2026.
· Request the Pension Fund Panel and Board to approve that the Fund become an endorser of the PRI’s ADVANCE project where institutional investors work together to drive positive outcomes on human rights and social issues from companies through collective influence.
It was noted that there had been a slight improvement in the Fund’s Principles for Responsible Investment (PRI) assessment scores, and the report identified actions that the Fund could take to further increase its scores. The report also presented the annual stewardship code report which was produced in line with the new updated guidance. It was highlighted that since 2026 is the first year under the updated 2026 guidance, existing signatories who submit a renewal application will automatically retain their signatory status.
The Sub?Committee also considered the issues of modern slavery and child labour, which had been identified as a priority concern by scheme members in the Fund’s most recent RI survey. Officers outlined a recommended action for the Fund to endorse the PRI’s “Advance Project”, a collaborative engagement initiative aimed at improving human rights and social?issue outcomes at investee companies. It was noted that LGPS Central was already a collaborating investor, and that there would be no cost to the Fund for participation.
A significant element of the discussion centred on the proposal for Hampshire Pension Fund to become a member of the Local Authority Pension Fund Forum (LAPFF). Joining LAPFF would cost £12,000, for 2026–27, but would align the Fund with the Central pool and its partner funds, together with the majority of other administering authorities, as almost all local government pension schemes were already members. Officers highlighted advantages of membership, including access to enhanced research, coordinated engagement opportunities, and reassurance to Central that Hampshire was fully participating in collective stewardship work.
Members reviewed examples of voting and engagement activity, including instances where investment managers had voted against company management on climate?related or governance issues. The Sub?Committee also noted examples of ongoing engagement with companies on issues likely to be of particular interest to scheme members.
The Chairman thanked officers for the comprehensive report and Members for the thorough discussion.
RESOLVED:
1.That the Pension Fund Responsible Investment Sub-Committee note the report, including:
· The Fund’s annual compliance report with the UK Stewardship Code. This report will be used as Hampshire’s submission to reapply to the Financial Reporting Council (FRC) for membership of the Code.
· The Principles for Responsible Investment’s (PRI) Assessment Report 2025 which rated the Pension Fund at 4* (out of 5) across 8 of the overall 9 categories. This reflected an increase in the score for 5 categories under review.
· How the Pension Fund’s investment managers have voted in the Fund’s portfolios and engaged with the management of these companies as highlighted in this report, and the progress that has been made in respect of excluding controversial weapons from the portfolio.
2.That the Pension Fund Responsible Investment Sub-Committee recommend to the Pension Fund Panel and Board that:
· Hampshire Pension Fund joins the Local Authority Pension Fund Forum (LAPFF).
· The Pension Fund Panel approve the Fund’s proposed 2026 PRI assessment report on 17 July 2026, prior to submission by 31 July 2026.
· Request the Pension Fund Panel and Board to approve that the Fund become an endorser of the PRI’s ADVANCE project where institutional investors work together to drive positive outcomes on human rights and social issues from companies through collective influence.
8
Taskforce for Climate Related Financial Disclosure Report
To receive a report from the Director of Corporate Operations, presenting the Pension Fund’s fifth annual Taskforce for Climate Related Financial Disclosure (TCFD) report.
Attachments:
- Document TCFD report 26 Feb 2026
- Document TCFD Report 2026 26 Feb 2026
Minutes
The Sub?Committee received a report from the Director of Corporate Operations, presenting the Fund’s fifth annual Taskforce for Climate Related Financial Disclosure (TCFD) report.
Members heard that the report set out the actions taken over the previous year to reduce the Fund’s carbon footprint and included charts and analysis demonstrating the impact of these actions. It was noted that the Fund had seen considerable reductions in carbon exposure and that the accompanying graphs illustrated these reductions clearly. Members commented that long?term reductions in portfolio carbon intensity represented an important achievement and were the product of sustained strategic work over a period of years
Members discussed the broader issue of communications around climate progress. Officers explained that historically the Fund’s communication strategy had focused on its two primary constituencies, employers and scheme members, rather than the wider public. They noted that the Fund had generally been cautious about wider publicity, given the diverse and sometimes polarised views on RI issues, and the risk that external groups might focus on areas of disagreement rather than the Fund’s positive achievements. However, officers acknowledged that there may be opportunities to strengthen web?based information to ensure that accurate, balanced explanations were readily accessible.
Members noted that the Fund’s effective investment strategy had delivered tangible savings for local authorities by reducing employer contribution requirements, which in turn protected funding for public services.
RESOLVED:
That the Pension Fund’s annual TCFD report is noted.
Members heard that the report set out the actions taken over the previous year to reduce the Fund’s carbon footprint and included charts and analysis demonstrating the impact of these actions. It was noted that the Fund had seen considerable reductions in carbon exposure and that the accompanying graphs illustrated these reductions clearly. Members commented that long?term reductions in portfolio carbon intensity represented an important achievement and were the product of sustained strategic work over a period of years
Members discussed the broader issue of communications around climate progress. Officers explained that historically the Fund’s communication strategy had focused on its two primary constituencies, employers and scheme members, rather than the wider public. They noted that the Fund had generally been cautious about wider publicity, given the diverse and sometimes polarised views on RI issues, and the risk that external groups might focus on areas of disagreement rather than the Fund’s positive achievements. However, officers acknowledged that there may be opportunities to strengthen web?based information to ensure that accurate, balanced explanations were readily accessible.
Members noted that the Fund’s effective investment strategy had delivered tangible savings for local authorities by reducing employer contribution requirements, which in turn protected funding for public services.
RESOLVED:
That the Pension Fund’s annual TCFD report is noted.
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