Representing 1,000 staff at County Hall, union UNISON said the RIP would give contributors ‘greater influence’ over how their pension is invested, amid growing pressure to move away from fossil fuel and arms trade investment.
But activist group the Isle of Wight Palestine Solidarity Campaign (IWPSC) accused the local authority of appearing to take the ‘easy route’ of leaving policy to experts, ‘without due scrutiny’.
Both organisations previously criticised County Hall over a lack of debate around a motion calling for the ethical investment of its pension fund.
The RIP, authored by financial adviser Hymans Robertson, defines responsible investment as the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries, leading to sustainable benefits for the environment and society.
It says the committee aims as a responsible investor to achieve positive ‘real-world’ change and believes this is often achieved through effective stewardship.
Stewardship is defined as the activities of investors in exercising the rights and responsibilities that come with asset ownership, with practices including voting on shares and engaging with company management.
However, the RIP also contains a section entitled ‘exclusions and controversial investments’.
The document says: “The committee’s view is that exclusions should primarily be placed on assets where there is limited ability for the investment manager to have meaningful influence through stewardship or engagement options have been exhausted (e.g. a company whose only business is in mining thermal coal).”
Exclusions listed include companies directly involved with human rights abuses, those associated with significant deforestation or biodiversity loss or any government or company currently subject to legal sanctions by the UK.
Steve Milford, UNISON Isle of Wight local government branch treasurer, said: “At a time when pension fund management is becoming more centralised, the RIP gives contributors greater influence over how their pension is invested.
“There is growing pressure from pension scheme members to move away from investments in fossil fuels and the arms trade and towards more responsible alternatives.”
Maggie Nelmes, chair of the IWPSC, said the group has ‘grave concerns’ about the council’s spending of ‘many thousands of pounds’ from its pensions pot on hiring actuaries to make its pensions fund investments policy.
“We are concerned that the pensions fund committee voted at its meeting on April 29 to adopt the RIP produced by actuarial company, Hymans Robertson, lock, stock and barrel,” she said.
“The council appears to be taking the easy route of leaving policy to experts, without due scrutiny.”
Chris Jarman, pension fund committee chair, told the Local Democracy Reporting Service (LDRS) the policy document will guide the work of the committee and officers.
The Isle of Wight Council has been approached for comment.