Adam Matthews has hailed the responsible investment work done by £35bn (€42bn) Bristol-based Brunel Pension Partnership, which is reeling from having had its pooling plan rejected by the UK government.
Writing in a personal capacity on LinkedIn, Matthews, who is chief responsible investment officer of the Church of England Pensions Board, said that he viewed the local authority pension pool as “one of the most credible practical examples of what it is to be a responsible investor”.
“Be under no illusion what you have pioneered and driven has made a real world difference.”
Under the UK government’s ‘Fit for the Future’ consultation, all local government pension scheme (LGPS) pools were required to set out how they would pool all remaining assets by March next year and set up internal management capabilities, regulated by the Financial Conduct Authority (FCA).
Last month, it came to light that ACCESS and Brunel each had their plans rejected, meaning they could be forced to merge with other pools. Last week, the government announced the creation of a £25bn investment company by the Wales Pension Partnership.
Citing Brunel’s response to the rejection, Matthews said he fully agreed that the pool had exceeded the initial aims of pooling and had been a trailblazer in responsible investment across the global asset owner space.
“You have, and you did it out of a belief it was the best thing for the partner underlying funds and their members and the world into which their members will retire.”
He extended particular thanks to Faith Ward, “an absolute titan of everything that is responsible investment”.
Ward was one of a few staff lifted from the Environment Agency Pension Fund (EAPF) to lead Brunel and has driven the pool’s ambitious work on long-term sustainable investment.
She is highly respected, holding roles such as chair of the International Investors Group on Climate Change (IIGCC) and having recently been appointed to lead one of the committees of the Transition Finance Council, a body launched by the government and City of London.
Saying he did not want to go into the politics of the government’s decision on the pools’ plans, Matthews said he hoped that for Ward and fellow Brunel leaders “there is a fairness that ensures you are well understood for what you have done, what you can continue to do and that whatever the next step is – that you are recognised for the fundamental change and impact you have had”.
“Anyone in responsible investment that is genuinely seeking to do it stands on your shoulders […] I know I do.”
Matthews’ post was supported by the industry, including Renata Kostrzewa, head of responsible investment at BP Pension Fund, David Harris, head of sustainable finance strategic initiatives and partnerships at London Stock Exchange Group, and Rory Sullivan, CEO of Chronos Sustainability.
“They are the epitome of what a long-term, patient institutional investor should look like, and there is so much in their model that could and should be replicated in the investment industry as a whole,” said Sullivan of Brunel.
Matthews’ personal statement comes after Brunel was able, as part of its response to the government’s decision, to source support for its work from asset managers as well as Chris Sier, a cost transparency specialist. He said Brunel had shown rare ‘super-procurement capability’, achieving fees well below those predicted by portfolio size.
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Susanna is ESG Editor at IPE, steering the publication's coverage of responsible investment news and analysis. She has a penchant for EU regulation, which also sees her covering EU pensions policy, and is a bit of a newshound so may drift into other areas, too.View full Profile
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