Court of Appeal makes ruling on guidance from the Department for Communities and Local Government
Trustees Agenda posted on 25 June, 2018
The Court of Appeal has issued a ruling on guidance from the Department fro Communities and local Government (DCLG) on the investment strategy for local government pensions schemes, specifically that policies should not be pursued that were against the United kingdom's foreign or defence policy. The Court of Appeal found that the section of the guidance in question was not "issued for an unauthorised purpose and fell within the scope of the legislation". An earlier High Court ruling made last year had found that the guidance was "unlawful".
Lawyers have warned that this decision could lead the way for a greater influence from politicians on impact investing and environmental, social and governance issues within the Local Government Pension Scheme system.