Northern LGPS publishes 2026 responsible investment policy
Author: LAPF Investments | Published: April 13, 2026
Northern LGPS has published in responsible investment policy for 2026, outlining the pool’s approach to responsible investment activities.
As part of this, there’s going to be more scrutiny on AI governance and cybersecurity on the businesses it invests in, stating that it expects boards to “demonstrate adequate expertise and oversight capabilities” in these areas.
It added: “This includes ensuring appropriate board-level understanding of AI risks and opportunities, data governance frameworks and cyber threat management strategies.”
It also expects portfolio companies to deploy AI in a transparent, accountable and equitable manner. Explaining why, the pool said: “We consider the ethical use of data and technology to be financially material, particularly in sectors where digital infrastructure, AI systems, and data governance are central to business models.
“Poor practices in these areas can lead to reputational damage, regulatory penalties, and systemic risks.”
Additionally, and as part of its support of the principles of a just transition, Northern LGPS will actively engage with the social aspects of responding to climate change, including consideration of the potential impact close to home in the north, as well as further afield in emerging markets.
It added: “The pool, therefore, expects companies to publish a just transition plan that addresses their specific social transition risks and opportunities. This transition plan should be guided by a materiality assessment with clear actions and timeframes.”
It also expects its portfolio companies, “where affordable and financially beneficial”, to pay the Real Living Wage. They’re also expected to address gender, ethnic and other pay gaps through regular monitoring and public reporting, with clear action plans to reduce the disparity.
