Local Government: Investment
The question
To ask the Secretary of State for Housing, Communities and Local Government, if he will (a) make an assessment of the extent of and (b) take steps to help tackle barriers to local authorities practicing ethical divestment.
Answered by Alison McGovern
Local authorities are responsible for their own investments and accountable to their electorate. When making investment decisions, authorities must, however, ensure they comply with legislation and guidance intended to ensure that decisions are prudent, affordable and sustainable.
Investment strategies for Local Government Pension Scheme (LGPS) funds are set by local pension committees, and include how social, environmental and corporate governance and responsible investment considerations are taken into account. Pension committees must have regard to their fiduciary duty to scheme members and employers when setting their investment strategy and must follow relevant legislation and guidance.
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