Local Pensions Partnership Investments Ltd (LPPI) is committed to the long-term responsible investment of pension savings on behalf of client pension funds.
We incorporate responsible investment considerations into our investment manager selection, appointment and monitoring by being clear with prospective managers about our requirements from the outset and explaining our expectations through conversations and interactions.
As part of the selection process we routinely share our Responsible Investment Policy and ask for equivalent information from prospective managers to prompt a discussion / review of general alignment. We follow-up with an RI Due Diligence Questionnaire which requires more detailed information on their current approach and how it is resourced/overseen, on any plans for further evolution and on their provision of information/reporting outputs to clients. Where managers are PRI signatories, we request their most recent transparency and assessment reports. Findings on RI/ESG approach and integration are included in the papers considered by our Investment Committee and inform final decision making on selection.
Our appointment process reflects the evaluation made during the selection stage and confirms our requirements for ESG integration and reporting, specifically reflecting that we are PRI and UK Stewardship Code signatories and require external managers to support us in the fulfilment of the commitments we have made. Our ongoing monitoring of managers is based on dialogue by our asset class teams and on a flow of reported information. Where required, we will support a direct dialogue between an external manager and our RI team to discuss issues or action points identified by our RI review and to ensure these will be resolved through review or further development to an agreed timescale.