Issue - meetings

Report of Assistant Director of Finance (S151)

Purpose of report

To provide information to Executive on ESG in the context of Local Government and to allow for consideration of the motion referred by Council 19 December 2022 to the Executive.

Recommendations

The meeting is recommended to:

1.1         Note the Local Government context for the application of ESG principles and how the Council will respond to the motion relating to Environmental, Social and Governance (ESG) principles.

1.2         In response to proposal 1, to request officers to update the Executive on ESG audit requirements following the outcome of the Financial Reporting Council (FRC) and subsequent CIPFA requirements.

1.3         In response to proposal 2, to agree to continue to comply with the current Council approved Capital and Investment and Treasury Management Strategies until such time as there is more information available about defining ESG principles within a Capital and Investment or Treasury Management Strategy.

1.4         In response to proposal 3, to agree the Leader to initially write to the Pension Fund to understand how the pension fund invests in its assets and then act appropriately based on the information received. 

Resolved

(1)          That the Local Government context for the application of ESG principles and how the Council will respond to the motion relating to Environmental, Social and Governance (ESG) principles be noted.

(2)          That,  in response to proposal 1, “Holding transparent annual audits of all our investments to be measured against ESG principles which will be published alongside the annual accounts”, officers be requested to update the Executive on ESG audit requirements following the outcome of the Financial Reporting Council (FRC) and subsequent CIPFA requirements.

(3)          That, in response to proposal 2, “To divest as soon as practicable from any investment that runs contrary to ESG principles and any other standards set by the council, particularly with respect to any funds connected with fossil fuels, unfair labour practices or exploitation of workers”,  it be agreed to agree to continue to comply with the current Council approved Capital and Investment and Treasury Management Strategies until such time as there is more information available about defining ESG principles within a Capital and Investment or Treasury Management Strategy.

(4)          That in response to proposal 3, “To urge the Oxfordshire Pension Fund to further divest from fossil fuel investments at the earliest opportunity with a firm timetable for complete divestment from such funds by 2030”, it be agreed that the Leader initially write to the Pension Fund to understand how the pension fund invests in its assets and then act appropriately based on the information received. 

The Assistant Director of Finance (S151) submitted a report to provide information to Executive on ESG in the context of Local Government and to allow for consideration of the motion referred by Council 19 December 2022 to the Executive.

Councillor Walker, as proposer of the motion to the Council meeting, addressed Executive. Councillor Walker thanked Executive for the detailed report and requested that updates be provided at appropriate times.

The Portfolio Holder for Finance thanked Councillor Walker for her comments and assured that updates would be provided at appropriate times.

Resolved

(1)          That the Local Government context for the application of ESG principles and how the Council will respond to the motion relating to Environmental, Social and Governance (ESG) principles be noted.

(2)          That,  in response to proposal 1, “Holding transparent annual audits of all our investments to be measured against ESG principles which will be published alongside the annual accounts”, officers be requested to update the Executive on ESG audit requirements following the outcome of the Financial Reporting Council (FRC) and subsequent CIPFA requirements.

(3)          That, in response to proposal 2, “To divest as soon as practicable from any investment that runs contrary to ESG principles and any other standards set by the council, particularly with respect to any funds connected with fossil fuels, unfair labour practices or exploitation of workers”,  it be agreed to agree to continue to comply with the current Council approved Capital and Investment and Treasury Management Strategies until such time as there is more information available about defining ESG principles within a Capital and Investment or Treasury Management Strategy.

(4)          That in response to proposal 3, “To urge the Oxfordshire Pension Fund to further divest from fossil fuel investments at the earliest opportunity with a firm timetable for complete divestment from such funds by 2030”, it be agreed that the Leader initially write to the Pension Fund to understand how the pension fund invests in its assets and then act appropriately based on the information received. 

Reasons

The report sets out ESG in the context of Local Government and the proposed actions in response to the motion received by Council and referred to the Executive.

Alternative options

No alternative options have been identified and rejected.