The Wiltshire Pension Fund Committee met on Thursday 24 September 2026 to discuss responsible investment, climate and nature assessments, and the fund's updated Responsible Investment Policy. The committee approved the updated Responsible Investment Policy and noted progress on various responsible investment initiatives.

Responsible Investment Update & Progress Report

The committee received an update on the Wiltshire Pension Fund's (WPF) responsible investment performance. Key highlights included the availability of the 2026 Stewardship Report on the fund's website, confirmation from the Financial Reporting Council (FRC) that WPF would remain a signatory to the UK Stewardship Code, and the completion of the 2026 Spotlight on Social Themes Report. Progress was also noted on discussions with LGPS Central regarding the implementation of an enhanced Responsible Investment (RI) offering, with LGPS Central developing its Responsible Investment Targeted Approach (RITA).

A site visit to an affordable housing development in Salisbury with CBRE was highlighted as a training opportunity for committee members, providing insight into local investment impacts. The committee was encouraged to complete mandatory training, with officers now able to monitor progress.

Regarding climate change, it was reported that WPF's listed equity portfolios had achieved a 57% decarbonisation against a 2019 baseline, avoiding approximately 44,000 tonnes of greenhouse gas emissions. The report noted that the fund's top emitters now largely consist of companies essential for the transition to a low-carbon economy, citing Steel Dynamics as an example of a company using electric arc furnaces for steel production. The fund also expressed its ambition to adopt the Taskforce on Nature-related Financial Disclosures (TNFD) framework.

During the discussion, the positive environmental and job creation aspects of using electric furnaces in Germany were noted. Clarification was sought on the definition of clean energy and the inclusion of biodiversity metrics in reports as part of the TNFD adoption ambition. A point was made regarding the importance of achieving best value for money for all Wiltshire Pension Fund employees. The recent site visit was positively received, with members finding such opportunities beneficial.

The committee resolved to use the report to monitor progress on implementing the responsible investment policy and to note the progress made against the Responsible Investment Plan 2026/27 actions.

Climate & Nature Assessment Report

Fund Investment Advisors, Gallagher, presented the annual Climate and Nature Assessment Report. The training covered global greenhouse gas emissions, how the fund's emissions are calculated, and the potential for physical climate risk to cause significant macroeconomic damage. The Wiltshire Pension Fund Climate Report was introduced, aiming to provide a snapshot of the fund's climate profile as of 31 December 2025 and identify areas for further investigation. Detailed climate metrics for the fund were presented, along with an overview of the top contributors to financed emissions and exposure to priority sectors. It was suggested that priority sector exposure could serve as a screening tool for identifying material risks and informing discussions with LGPS Central on potential actions. The report concluded that the fund was making meaningful progress towards its objectives and that climate risk remained financially relevant.

Committee members discussed the presentation, with a question raised about the integration of physical climate risk and the utility of the priority sector exposure slide for cross-referencing holdings to understand meaningful exposure.

Responsible Investment Policy

Chris Moore, Investment and Accounting Team Lead, presented the updated Responsible Investment Policy for approval. The policy is updated annually to complement the Fund's Investment Strategy Statement (ISS), which guides LGPS Central. Updates included reflecting new pooling arrangements and the intention to report in line with TNFD standards, with further adjustments planned following the Member Survey.

During the discussion, a question was raised about the lack of explicit mention of cooperation with other LGPS Central Funds in the report. Clarity was provided that this was distinct from the RI Policy itself, with LGPS Central aiming to find common ground, and that this could potentially be incorporated into the RI Policy at a later stage. The policy was described as representing the Fund's views and guiding Central's approach when acting on behalf of the Fund. A discussion ensued regarding safeguards should LGPS Central adopt a different approach, with the Responsible Investment Targeted Approach (RITA) cited as an example of collaboration. It was noted that action could be taken through the Oversight Board and client groups if necessary.

A suggestion was made to expand the section on governance within the report's ESG priorities.

The committee resolved to approve the Responsible Investment Policy 2026.

Public Participation

Mr Alex Hall submitted a question regarding the fund's investments in weapons companies. He highlighted precedents from other LGPS funds, such as Waltham Forest Pension Fund, which had committed to divesting from companies linked to the arms trade. Mr Hall also referenced legal developments, including a concession by Greenwich Council that a clause in its investment strategy was unlawful and legally erroneous regarding divestment. He argued that the distinction between controversial and conventional weapons was lost in practice, particularly in light of events in Gaza, and that continuing to hold investments in weapons companies posed a reputational risk to the fund. He also contended that fiduciary duty should not be solely defined by short-term return maximisation but by acting in the best interests of scheme members and employers over the long term, considering factors like global stability and economic growth.

Mrs Clare Lawrence also made a statement, relaying the shock and unhappiness of pensioners upon learning about the fund's holdings in such investments.

Chris Moore, Investment and Accounting Team Lead, responded by outlining the practical considerations for divestment, including the complexities of investment pooling where unilateral divestment is not possible. He noted that the upcoming Member Survey in Q1 2027 would be crucial for gathering views to shape priorities and inform the committee's decisions. He reiterated that LGPS Central is responsible for implementing the RI Policy and that the fund could collaborate with other LGPS partner funds for a consistent solution, provided it aligned with fiduciary duty and investment objectives. It was also mentioned that other groups were engaging with LGPS Central on similar concerns.

The Chairman noted that the majority of the fund's exposure was on a passive basis, and that such investments contributed to the risk position that enabled the fund to pursue positive global outcomes. Mr Hall further commented on the Avon Pension Fund's survey, suggesting potential issues with survey design and response rates. Jennifer Devine, Head of Wiltshire Pension Fund, agreed on the importance of designing future survey questions correctly to maximise responses.

Other Business

The committee also noted the progress on the Climate & Nature Assessment Report and reviewed the date of the next meetings. They resolved to exclude the public from Part II of the meeting to discuss exempt information.

In Part II, the committee approved the minutes from the previous meeting, received an update on Pension Fund Resourcing, reviewed the Quarterly Investment update, and noted progress on Investment Pooling.