The Lothian Pension Fund (LPF) has published a statement of responsible investment principles with a focus on incorporating ESG issues into analysis and decision-making, while also committing to report on activities and progress.
The £8bn Scottish Local Government Pension Scheme (LGPS) fund said responsible investment supports the purpose of the scheme, and that the document complemented its existing statement of investment principles.
The fund has committed to six principles, including: to incorporate ESG issues into investment analysis and decision-making processes in both internal and external mandates; to be active owners and incorporate ESG issues into ownership policies and practices; and, to seek appropriate disclosures on ESG issues in the entities it invests in.
It will also promote acceptance and implementations of its principles within the investment industry, seek to enhance its effectiveness in implementing the principles, and report on activities and progress towards implementation.
The principles were adopted at a meeting of the City of Edinburgh Council pension committee on 24 June. Committee chairman Councillor Alasdair Rankin explained: "The last few years have seen enormous growth in the acceptance of the importance of informed stewardship and responsible investment of the assets at LPF.
"Today we implement an entirely new document - our statement of responsible investment principles. This document sets out our approach to investing responsibly in all our asset classes, and our position on climate change and the carbon transition."
The LPF is Scotland's second largest LGPS fund, delivering benefits for more than 85,000 members and 90 employers.
Chief investment officer Bruce Miller added: "We're very clear that our primary responsibility is to be able to pay the future pensions of our members, but it's important to all stakeholders that we invest in a manner that the average member sees as fair and reasonable.
"While some of our members will have very strong views on particular companies or sectors, this document articulates how we aim to invest in a responsible manner on behalf of all members while not overly emphasising the specific ethical viewpoints of individual members, trustees, or portfolio managers."
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