Agenda item

Ensuring best practice in Investment

Alderman Robert Hughes-Penney asked a question of the Chairman of the Investment Committee concerning the level of engagement with the Corporation’s fund managers to ensure best practice with environmental social governance, responsible investment, and impact investment are being adopted and followed.

Responding, the Chairman explained that the Financial Investment Board of the Investment Committee has been actively engaged in developing a Responsible Investment Policy and a Statement of Commitment to the UK Stewardship Code, with guidance from the City Corporation’s investment consultant, Mercer. The UK Stewardship Code seeks to ensure that assets owners hold their managers to account for their activities and best practice would look for this to be reported on an annual basis. The City Corporation’s Statement of Committee has been submitted to the Financial Reporting Council, and it was expected that the City Corporation would soon be classified as a Tier One asset owner, which is the highest ranking. In addition, the Board has also signed up to the Principles of Responsible Investment which focus on incorporating Environmental, Social and Governance issues into investment practice, a review of the current managers took place and this will take place on an annual basis which will serve as a reminder to the managers that this is a priority for the City Corporation.

In response to a supplementary question from Alderman Hughes-Penney concerning how the fund managers are implementing the United Nation’s Sustainable Development Goals, in their investment mandates, the Chairman explained that, the City Corporation had already contributed to the UN’s 12 Sustainable Development Goals by launching its Sustainable Development Capital Initiative at the recent UN General Assembly Conference which will have the benefit of encouraging increased private investment in developing markets and in strengthening the City of London’s position as a hub for initiatives and transactions. The Investment Committee would as the UN’s Sustainable Goals start to take shape, endeavour to absorb these and encourage the investment managers to incorporate them into their approach.

Construction works and the impact on traffic

Wendy Mead asked a question of the Chairman of the Planning and Transportation Committee requesting an update on the construction work taking place at Thames Tideway Tunnel and Blackfriars, and the impact on traffic movement along the Embankment.

In response, the Chairman advised that Tideway were proposing a full closure of the Embankment for six months to carry out gas works, however, following pressure from both City Corporation Officers and Members of the Court of Common Council to illustrate the consequences of this approach, Tideway have made significant changes to their design and whilst their decision requires final approval by Cadent’s engineers, Tideway have suspended all advance work planned for the diversion.

Wendy Mead noted that this was good news for residents and businesses, and whilst on the subject of good news, a supplementary question was asked concerning the Bloomberg Building’s recent award of the Sterling Prize.  The Chairman confirmed that the Bloomberg building had been awarded the 2018 RIBA Stirling Prize, where it had been recognised that the building is the world’s most sustainable office with a host of features for reducing water, energy consumption, and CO2 emissions. Furthermore the building provides a new access to Bank Underground together with a free museum which restored the Temple of Mithras and displayed finds from the excavation. The development’s success illustrates the contribution the City Corporation’s Officers made and drew on the District Surveyors’ experience of large commercial projects, form inception to occupation. The Chairman congratulated all those involved.

Standards Committee proceedings

Graeme Harrower asked a question of the Chairman of the Standards Committee which made reference to a memorandum which he had circulated to all Members of the Court of Common Council. The memorandum had highlighted his concerns relating to a number of elements of the Standards Regime and suggested the submission of a Motion seeking their amendment.

The Chairman, replying, explained that the City Corporation had a statutory duty to promote and maintain high standards of conduct by Members and co-opted Members and must have a Code of Conduct and arrangements in place under which allegations could be investigated and decisions made. The Standards Committee, through its various sub-committees, had the duty to fulfil these responsibilities on behalf of the Court of Common Council.

With regard to the particular case referred to, the Chairman stated that he had no doubt it had been properly and fairly handled in line with the arrangements laid down by the Court of Common Council. He added his belief that the Members of the Sub-Committees which had considered the case had fulfilled their responsibilities and exercised their judgement with integrity. The Chairman also suggested that he did not consider it appropriate, nor equitable, for a decision made under such delegated arrangements to be discussed by the full Court. 

The Chairman noted that new arrangements had recently been introduced by the Court of Common Council for cases considered by the Standards Committee, but the referred to case, due to timings, had been dealt with under the old procedures.

Responding to a supplementary question from Mr Harrower asking whether a new approach should be considered at the December meeting of the Court of Common Council, the Chairman explained that he did not think this would be helpful.

In response to a further supplementary question from Deputy Brian Mooney concerning the handling of the particular case in question, the Chairman reiterated his earlier comments and belief that the proper procedures had been followed.