In the spotlight: Paul Hewitt, our Responsible Investment Manager
We’re putting a spotlight on Paul Hewitt, our Responsible Investment (RI) Manager. Paul joined the LPFA in 2022, bringing over 20 years of experience in the RI sector. The LPFA is a committed responsible investor. We consider that how our members’ funds are invested contributes to the future of our economy, our environment and our society. Investing responsibly is a critical risk management strategy that safeguards our members’ retirement savings while enabling access to resilient, future-focused opportunities in sectors like renewable energy and clean technology.
Tell us about yourself
Before starting here, I had worked in the private sector providing data, research and services which support institutional investors, including Local Government Pension Scheme (LGPS) clients, in their RI work. I also served four years on the Pensions Advisory Board at the Essex Pension Fund.
The decision to join the LPFA as RI Manager was a very easy one to make, as after years of dipping in and out of client projects I had developed an appetite for working on projects of my own and applying all the experience I had gained from working with numerous pension funds and investment managers over the years.
Before starting my career in RI, I spent four years working in local government, focusing on economic development. I was involved in a variety of EU-funded projects aimed at supporting social and economic growth in Southend and Harlow. These were my first roles after university, where I studied European Studies, earning a BA from Kent and a Master’s in Contemporary European Studies from Sussex.
What are your hobbies and interests?
After being a dad to my two children (12 and nine) who live with me every other weekend, my main hobbies and interests are making music and sport. I’m deputy leader of the Essex Symphony Orchestra, where I play the violin. On free weekends you’ll find me umpiring (field) hockey in the national league mainly in the midlands and the east (which actually means London!). This is a very handy way of mitigating exposure to the life-long agonies of being a Southend United football fan as well as a great sandbox for developing strategies to manage the demands of my kids bickering!
What does a day in the life of a Responsible Investment Manager at the LPFA look like?
The rhythm of RI work is more quarterly than daily. Much of my time is spent working with our asset managers, Local Pensions Partnership Investments (LPPI), to ensure our investments align with the LPFA’s RI Policy.
I have regular meetings with LPPI colleagues across a range of workstreams - RI policy, net zero reporting and the ad-hoc RI questions, such as responding to freedom of information requests or addressing emerging business developments.
LPPI plays a vital role in putting our RI Policy into action. We’ve made clear commitments to decarbonise our investment portfolio, support the climate transition and reduce climate-related risks. These commitments require action and evidence, so we ask LPPI to regularly report on the steps they’re taking.
We also monitor how LPPI uses voting rights at shareholder meetings, particularly where climate risk is concerned.
Beyond LPPI, we’re active members of several external organisations that share our priorities. The Local Authority Pension Fund Forum (LAPFF), for example, provides voting alerts and leads engagement with companies and regulators on a wide range of Environmental, Social and Governance (ESG) issues. Another is the Institutional Investor Group on Climate Change (IIGCC), whose Net Zero Investment Framework helps guide our climate risk work. These groups offer everything from research and seminars to collaborative engagement campaigns, many of which I get involved in.
Internally, I work closely with our Communications team, which does a fantastic job of sharing our RI work with the wider world. We plan a calendar of RI publications and build campaigns around key developments, such as our recent announcement on investing in climate solutions.
Our RI work
Last year, we launched an updated RI Policy alongside a refreshed Climate Change Policy. You can find both policies on our website.
The RI Policy sets out our approach to investing responsibly, incorporating ESG factors. These are a way of understanding how a business integrates environmental, social, and governance practices into operations, their business model, its impact and its sustainability. The policy outlines our core beliefs and priorities, which guide how we and our investment managers integrate ESG into everyday decision-making.
Our seven RI beliefs form the foundation of this work. They help ensure that our approach remains consistent, transparent and aligned with our long-term goals.
As part of the policy review, we drew on insights from our Member Survey 2023. The results confirmed that our beliefs reflect what matters to our members. In particular, members told us they value investments that avoid harm to society and the environment, and that they prefer engagement over disinvestment when positive change is needed.
You can read our beliefs in full in the policy, but the important parts are:
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ESG factors make a difference to investment value
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Collaborating with other investors gets better results for our economic future, our beneficiaries’ quality of life, and for advocating for positive change in our society
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Transparency is essential for good decision-making
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ESG monitoring needs to be flexible to respond to the swift pace of change
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We should use our active ownership powers to protect our long-term interests
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Better governance means better management of environmental and social risks
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We retain the right to disinvest if we’re unable to effect sufficient change and there’s a potential material risk to the Fund
The policy also sets out our RI priorities. Once again, our Member Survey 2023 played a key role, helping us identify which of the most common ESG issues within our portfolio that matter most to our members.
We considered these insights within a broader investment-focused review. This included analysing the ESG risks and opportunities most relevant to our holdings, identifying global economic trends and reviewing the areas our investment managers are already working on.
From this process, we identified six thematic priorities and objectives, which are set out below.
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Priority |
Objective |
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Renewable energy solutions and distribution |
To prioritise supporting the development and distribution of renewable energy solutions. |
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Pollution and the circular economy |
To encourage action to reduce pollution and increase circularity in the economic activities of our investments. |
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Fair pay |
To promote better practices of pay for workers and management across our investments. |
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Diversity, Equity and Inclusion (DEI) |
To promote the importance of DEI across our investments. |
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Accountability and Oversight |
To encourage good standards of oversight and accountability in all our investments. |
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Cyber security and responsible tech development |
To encourage our investments to identify and manage risks and opportunities relating to cybersecurity and responsible technology developments. |
We’ve found that talking about RI is a great way to engage our members. It often sparks meaningful conversations, particularly at our Fund Member Forum, whether about environmental concerns or wider social issues. If you have any questions about any aspect of our RI work, please feel free to get in contact with us – it’s what we’re here for!