Decision details

46.1     The Committee considered a report by the Director of Law and Assurance which set out a motion submitted to Council on 6 November 2020 by Cllr M Jones (copy appended to the signed minutes).

46.2     The Director of Law and Assurance advised that the motion had been referred to the Governance Committee in light of the Pensions Committee’s role as administering authority for the West Sussex Local Government Pension Scheme on behalf of around 200 employers. It was more appropriate for the Governance Committee to comment as the Committee responsible for pensions matters as a pension scheme employer.

46.3     Cllr M Jones called on the Committee to urge Council to support the motion as a clear sign of the Council’s commitment to tackling the climate emergency.

46.4     The Committee discussed the motion. Some members felt that the Council should leave the Pensions Committee to make its own investment decisions as administering authority, albeit commenting that it is possible for the Council as with any other employer in the scheme to ask the Pensions Committee to consider such principles while undertaking its fiduciary duty for ensuring overall sustainability of the pension scheme.

46.5     Cllr Lanzer made a proposition, seconded by Cllr Marshall that the Governance Committee recommend to the Council that it ‘requests that the Pensions Committee maintains the application of environmental, social and governance principles throughout its process while seeking to maintain sustainable investment principles.’ A vote was taken and the proposition was agreed.

46.6     Cllr Walsh made a proposition, seconded by Cllr Jones that the Governance Committee recommend to the Council that it ‘requests that the Pensions Committee consults all employers in the West Sussex Local Government Pension Scheme on whether the Scheme should divest in fossil fuel companies.’ A vote was held and the proposition was lost.

46.7     Resolved – That the Committee recommends to the Council that the Pensions Committee be asked to maintain the application of environmental, social and governance principles throughout its process while seeking to maintain sustainable investment principles.