LGPS Central delivers investment management, stewardship and advisory services to eight partner funds across the central region with total assets of £64 billion, fostering the long-term growth and sustainability of their investments.

www.lgpscentral.co.uk

Long-term perspective on responsible investment
At LGPS Central, our approach to responsible investment is underpinned by a long-term perspective. As stewards of capital, we recognise that our fiduciary responsibility includes supporting the resilience of investment markets and the long-term growth of the real economy. We are not speculators, we are co-owners of the companies in which we invest on behalf of our partner funds, and we benefit from their long-term success.

Operational innovation
Innovation remains core to our operational philosophy. Phase 2 of our Net Zero Operational Emissions project is now live, expanding reporting beyond energy and travel to include embodied carbon in IT equipment, office furniture, and waste.

Pass-Through voting and reporting
We have successfully implemented pass-through voting for our partner funds in collaboration with Tumelo, EOS, L&G, and our existing partner funds, achieving a scale not previously seen in the UK pension fund sector. Our annual reporting cycle has been completed with the submission of our Stewardship Report, Climate Report, and PRI Report. One of our partner funds has submitted its own Stewardship Report, and we provided stewardship data to others for their October submissions.

Stewardship and climate risk
Our stewardship efforts are geared towards encouraging companies to think beyond quarterly results and proactively manage risks to their business models, including those posed by climate change. Climate scenario analysis consistently points to an orderly transition to a low-carbon economy as the most favourable outcome for long-term returns. Recognising this transition as central to our responsibilities, we view it as an integral part of effective investment stewardship.

We have continued to evolve our Climate Risk Monitoring Service, integrating forward-looking metrics and expanding private market coverage to better inform decision-making. Development of our Net Zero Dashboard is also underway and will form the basis of our next Net Zero update report.

Transparency and engagement framework
Transparency is crucial. Our new stewardship outcome framework now offers clear insights into engagement progress, defined objectives, milestones, and escalation paths.

Further reading
Wiltshire Pension Fund chooses LGPS Central as preferred partner
What does it mean to invest locally?