An update on the Hackney Pension Fund

An update on the Hackney Pension Fund

In Hackney, we continue to call for an end to the death, destruction and suffering we've witnessed throughout the conflict in Israel and Palestine, and that continues despite the current status of ceasefire and the desperate need for humanitarian aid.

We also recognise the strength of feeling that has been shown, in our borough and beyond, that the actions of public authorities here in the UK should not contribute to conflict or suffering elsewhere - particularly with regard to our ethical position on upholding human rights, our ambition to be a borough of sanctuary and pension funds investment.

We have listened to public concerns, engaged with campaigners, and taken seriously residents exercising their democratic rights.

We have a responsibility to be honest and transparent about what we can and cannot do with regard to our pension fund holdings. We are aware that some local authorities have made public commitments to divesting from pension holdings, but have not yet seen changes to the funds they hold.

The Hackney Pensions Committee has a legal obligation not to take any action that would have a detrimental financial impact on the Pension Fund of its scheme members, and its position is that it cannot risk breaching this legal obligation.

This does not mean it isn't committed to responsible investment. In Hackney, we have been ambitious in decarbonising our pension fund investments, and divested from holdings linked to Russia because our legal obligations allowed us to do so. The widespread imposition of sanctions on Russia meant that there were long-term financial concerns associated with the assets - divestment decisions are permitted by the Law Commission guidance where there is a clear financial rationale for doing so.

Hackney is now a signatory of the UK Stewardship Code, which recognises the Hackney Pension Fund as one of a few local government pension scheme providers and pools that adheres to the highest ethical, environmental and social standards for investing money.

Earlier this year, the Pension Fund conducted a survey of its members, with more than 1,000 people giving their views on a range of responsible investment issues. The Pension Committee is now considering how this input will shape the fund's approach and policies, while continuing to balance this against the fund's responsibilities to its members.

That will not mean major changes to how the Pension Fund operates overnight. It will, however, ensure that ethical investment, human rights and tackling the climate emergency remain at the forefront of the Fund's agenda.

Caroline Woodley, Mayor of Hackney