Mixed Reaction As Isle Of Wight Council Adopts New Pension Investment Policy

A new responsible investment policy for the Isle of Wight Council’s pension fund has received a mixed response from campaign groups and unions on the Island.

The new Responsible Investment Policy (RIP), produced by financial advisers Hymans Robertson, sets out how the council’s pension fund will consider environmental, social and governance issues when making investment decisions.

The policy states that the pension fund committee aims to act as a responsible investor by supporting long-term sustainable benefits for both society and the environment.

It also outlines how the committee believes positive change can often be achieved through “stewardship” — including shareholder voting and engagement with company management.

The document includes provisions for exclusions on certain investments, particularly where meaningful influence is considered limited or engagement efforts have failed.

Examples listed include companies linked to human rights abuses, significant deforestation or biodiversity loss, and organisations or governments subject to UK legal sanctions.

UNISON welcomed the move, saying it would give pension contributors “greater influence” over how their money is invested.

Steve Milford, treasurer of the union’s Isle of Wight local government branch, said there is increasing pressure from pension scheme members to move away from fossil fuel and arms trade investments.

However, the Isle of Wight Palestine Solidarity Campaign criticised the approach taken by the council.

Chair Maggie Nelmes said the group had “grave concerns” over the council spending large sums on external actuaries to develop the policy.

She also claimed the council appeared to be adopting the recommendations “without due scrutiny”.

Chris Jarman said the document would help guide the future work of the pension fund committee and council officers.

The Isle of Wight Council has been approached for further comment.