London Pensions Fund Authority issues first Responsible Investment report

• The report outlines LPFA’s progress on Climate, Nature, Social and Governance issues and reaffirms its commitment to responsible, long-term investing. 

• Highlights include the strengthening of climate change and responsible investment policies and active stewardship.  

London, 01 October 2025 

The London Pensions Fund Authority (LPFA) has released its first Responsible Investment (RI) report showcasing the Fund's commitment to active stewardship and highlighting how it integrates Environmental, Social, and Governance (ESG) factors into its investment strategy. The report highlights progress across the four key pillars of its RI policy: Climate, Nature, Social, and Governance. 

The report, covering the 2023-24 financial year, highlights significant achievements, including: 

• Policy updates: The LPFA revised its RI and Climate Change policies to better reflect evolving ESG risks and opportunities - strengthening its ability to safeguard long-term investment returns and hold its investment partners to higher standards of accountability. 

• Member engagement: Issuing a Member Survey 2023 with over 3,000 respondents provided valuable insights on sentiment towards RI, with members indicating strong support for a variety of issues including Fair Pay and Diversity, Equity, and Inclusion (DEI). 

• Active ownership: LPFA’s delegated investment manager, LPPI, demonstrated a high level of engagement and stewardship, voting at 97% of the 387 meetings across the Global Equities Fund. This amounted to involvement in 4,440 resolutions. 

• Collaborative action: The LPFA and LPPI collaborated with a number of industry groups, including the Local Authority Pension Fund Forum (LAPFF), the Institutional Investor Group on Climate Change (IIGCC) and ShareAction, and supported shareholder resolutions on climate risk, tax transparency, and workforce practices. 

According to Joanne Donnelly, CEO of the LPFA, "Investing responsibly is about maximising returns while considering the real-world outcomes of our investments. This report provides an overview of our stewardship activities and reinforces our members’ confidence that we are working responsibly to maximise investment returns both for today and for their retirement." 

Paul Hewitt, RI Manager at the LPFA, said “It is important that we make ourselves accountable to our stakeholders for our commitment to investing responsibly. We used the UK Stewardship Code as a good practice guide for what we should be saying about what we have been doing and why, as well as how we organise ourselves in working together with LPPI, our asset manager, in delivering it.” 

The report also details how the LPFA and LPPI have strengthened their oversight and reporting, providing case studies on engaging with companies on topics such as cybersecurity and fair pay. The Fund also appointed Minerva, a specialist in proxy voting and ESG research, to help monitor how LPPI's voting aligns with the LPFA's climate priorities. 

Looking ahead, the LPFA remains committed to continuous improvement, with a focus on enhancing the monitoring of climate-related voting, expanding net zero engagement and aligning investments with members’ values and long-term financial interests. 

Read the report here.

Note to Editors 

About the LPFA 

The LPFA is a defined-benefit LGPS Pension Fund and Administering Authority with c.100,000 members, 116 active employers and over £8 billion of assets (as of 31 March 2025). The Fund’s assets are fully pooled via LPPI, together with those of the Lancashire County Pension Fund and the Royal County of Berkshire Pension Fund. The LPFA and Lancashire County Council are also shareholders of the Local Pensions Partnership which comprises LPPI and pensions administrator, LPPA. LPPA administers the LPFA Fund. The LPFA is a signatory of the Climate Action 100+, a member of the LAPFF and is a participant in the C40 Cities Divest/Invest Forum. The LPFA made a Net Zero commitment in September 2021. 

For further information, please contact Alistair Peck or Evelina Miller on communications@lpfa.org.uk