Mr Edward Jones

Our ref: 41728

Dear Mr Jones

Acknowledgement of Request

Subject: Information on fossil fuel investments made by UK Local Government Pension Schemes (LGPS)

Thank you for your request for information of 20/03/2023 which was received on 20/03/2023.

In your request you asked for the following;

I am researching the fossil fuel investments made by UK Local Government Pension Schemes (LGPS) for an upcoming report by UK Divest. On publication, the report is likely to receive substantial interest from press and the elected representatives sitting on pension fund committees across the UK. Therefore can you please ensure the investment data you provide is as accurate as possible as our analysis will be fundamentally informed by it.

To complete this research, I require data on each investment that was held by Lothian Pension Fund on 31 March 2022, or the nearest possible date:

1. Investment names. Please provide the names of all investments held by the pension fund. For direct investments, please provide the names of individual investments such as specific stocks, bonds, and real estate units. For indirect investments (i.e. those held via a third party), please provide the names of investment vehicles, such as specific mutual funds, exchange traded funds (ETFs) and real estate investment trusts (REITs) and anything else. Note we do not need to know what each indirect investment vehicle invests in as we will determine this in the data analysis.

2. Investment identifiers. For listed investments (i.e. those traded on public exchanges), such as bonds and equities, please provide the International Securities Identifier Number (ISIN). For any investments that do not have an ISIN number, such as some alternative assets, please provide the Legal Entity Identifier (LEI). If an investment does not have an identifier, please provide an explanation.

3. Asset types. The asset type for each investment as reported by the pension fund, such as: real estate, cash, private equity, listed equity, sovereign bonds, corporate bonds etc.

4. Investment managers. The name of the entity which is responsible for the day-to-day management of each investment. For example, this could be the name of the entity which manages a specific investment fund such as Baillie Gifford, Legal & General, UBS etc. Note we do not need to know who is responsible for the overall governance of the LGPS or any pools it might belong to.

5. Investment values. The market value of each investment in pounds sterling (£) on 31 March 2022 or the nearest possible date. And please also give the total value of the pension fund.

We have created a read-only Google Sheet as a template for how we would like the data presented when you answer this request. You can view and download it here: https://docs.google.com/spreadsheets/d/1...

If possible, please use this Google Sheet when answering. Please note there are two tabs - 'summary' and 'data'. Please fill in both tabs. Using the template would help us accurately analyse the data provided.

If you respond promptly and to a satisfactory standard, we will willingly share our analysis with you prior to publication of our report, so you have the chance to comment and benchmark your pension fund against other UK LGPS.

I would like to receive this information in unlocked excel sheets without protected cells (.xls). If you have to password protect the excel sheets, please also provide the password to them. When considering the request for this data in excel format, please refer to Innes v Information Commissioner [2014] EWCA Civ 1086 (i), which allows a requester to express a preference for communication by a particular means, specifically: "an applicant's right to choose to have information provided to him in electronic form extends to a right to choose the software format in which it is embodied." (ii)

Please note:

Many public authorities release their contracts, minutes, and other information of interactions with private vendors in line with the Freedom of Information Act. The exemption for commercial interest under the Act (section 43) is a qualified exemption, which means information can only be withheld if it is in the public's interest. The public have an interest in knowing what the Pension Fund is investing in, the terms of contracts and the minutes of meeting with public authorities, whether or not public money changes hands immediately.

If you are relying on section 41 (the exemption for legal breach of confidence) then I would like to know the following:

* When these confidentiality agreements were agreed
* All correspondence and email in which these confidentiality agreements were discussed
* The precise wording of the confidentiality agreements.

I ask these questions because guidance issued by both the Lord Chancellor (draft guidance on FOI implementation) and the Office of Government Commerce (Model terms and conditions for goods and services) specifically state that public authorities should not enter into these types of agreements; they go directly against the spirit of the laws of disclosure. I would also point to the Information Commissioner's guidance on accepting blanket commercial confidentiality agreements: 'Unless confidentiality clauses are necessary or reasonable, there is a real risk that, in the event of a complaint, the Commissioner would order disclosure in any case.' (iii)

Finally, within the law of confidence there is also a public interest test. Therefore, the information should be disclosed in full. If any parts are redacted, they must be for information that can be proven to be a legal breach of confidence in court, and only then where secrecy can be shown to be in the public interest. These are difficult positions to argue when public money is at stake or where a public authority is offering a private company a monopoly to charge its stakeholders.

I reserve the right to appeal your decision to withhold any information or to charge excessive fees, and understand that under the act, I am entitled to a response within 20 working days. I would be grateful if you could confirm in writing that you have received this request.

I can confirm that your request will be processed under the Freedom of Information (Scotland) Act 2002, Environmental Information Regulations (Scotland) 2004, or the INSPIRE (Scotland) Regulations 2009.

You will receive the information requested within 20 working days unless the Council does not hold the information, or there is a reason for it to be withheld. We will write to you in any event. This means we have until 18/04/2023 to respond to your request.

In some circumstances a fee may be payable and if that is the case we will let you know.

If you have any requirements regarding the format any information should be supplied in, e.g. the language to be used, audio, large print and so on, then please let me know.

If you have any queries or concerns, do not hesitate to get in touch. Please quote the reference number above in any future communications.

To promote transparency and accountability, it is the Council’s policy to publish all request details and responses made under the freedom of information legislation. This information is available at the following link: https://www.edinburgh.gov.uk/homepage/10....

Further information about your rights and accessing information is available on our website at: www.edinburgh.gov.uk

Yours sincerely,

Information Governance Unit
Level 2:1, Waverley Court, Edinburgh EH8 8BG Tel 0131 200 2340
[Edinburgh City Council request email] www.edinburgh.gov.uk

Mr Edward Jones

[1][FOI #962140 email]

Our ref: 41728

Dear Mr Jones

Freedom of Information (Scotland) Act 2002 - Partial Release of
Information

Subject: Fossil Fuel Investments made by LGPS

Thank you for your request for information of 20/03/2023, which has been
processed under the terms of the Freedom of Information (Scotland) Act
2002 (‘FOISA’). Unfortunately, the Council is only able to meet part of
your request and this information is released to you below.

You asked for data on each investment that was held by Lothian Pension
Fund on 31 March 2022, or the nearest possible date.

Please note that where we have provided a link to the information. the
Council is claiming an exemption under section 25 of the Act because the
information is ‘otherwise accessible’.

1. Investment names. Please provide the names of all investments held by
the pension fund. For direct investments, please provide the names of
individual investments such as specific stocks, bonds, and real estate
units. For indirect investments (i.e. those held via a third party),
please provide the names of investment vehicles, such as specific mutual
funds, exchange traded funds (ETFs) and real estate investment trusts
(REITs) and anything else. Note we do not need to know what each indirect
investment vehicle invests in as we will determine this in the data
analysis.

Please see the attached PDF for this information.

2. Investment identifiers. For listed investments (i.e. those traded on
public exchanges), such as bonds and equities, please provide the
International Securities Identifier Number (ISIN). For any investments
that do not have an ISIN number, such as some alternative assets, please
provide the Legal Entity Identifier (LEI). If an investment does not have
an identifier, please provide an explanation.

This is a formal notice under section 17 of FOISA that we do not hold LEI
information.

The information that you asked for regarding the Issuer Identifier - ISIN
will not be released. Under the terms of the Act, a request for
information can be refused where one or more exemptions listed in the
legislation apply. The relevant information has been withheld in reliance
on section 36(2) of FOISA. This states that information is exempt if it
was obtained by a Scottish public authority from another person (including
another such authority) and its disclosure by the authority so obtaining
it to the public would constitute a breach of confidence actionable by
that person or any other person.

Disclosure of this information would result in a potential breach by
Lothian Pension Fund (acting through its administering authority, the City
of Edinburgh Council (“Lothian”)) of the confidentiality obligations under
its subscription agreement, which would be potentially actionable by the
licence holder of the relevant database.’

Please note that this constitutes a formal refusal notice under section 16
of the Freedom of Information (Scotland) Act 2002.

3. Asset types. The asset type for each investment as reported by the
pension fund, such as: real estate, cash, private equity, listed equity,
sovereign bonds, corporate bonds etc.

Please refer to the Asset Category column in the attached PDF.

4. Investment managers. The name of the entity which is responsible for
the day-to-day management of each investment. For example, this could be
the name of the entity which manages a specific investment fund such as
Baillie Gifford, Legal & General, UBS etc. Note we do not need to know who
is responsible for the overall governance of the LGPS or any pools it
might belong to.

Please refer to page 85 of the Annual Report published on the LPF website
-
[2]https://www.lpf.org.uk/help-hub/publicat...

5. Investment values. The market value of each investment in pounds
sterling (£) on 31 March 2022 or the nearest possible date. And please
also give the total value of the pension fund.

Please refer to page 86 of the Annual Report published on the LPF website
-
[3]https://www.lpf.org.uk/help-hub/publicat...

To promote transparency and accountability, it is the Council’s policy to
publish all request details and responses made under the freedom of
information legislation. This information is available at the following
link:
[4]https://www.edinburgh.gov.uk/homepage/10....

Your right to seek a review

I appreciate that our decision may disappoint you and I am sorry that we
have not been able to release all the information you requested on this
occasion. If you are unhappy with the way we have dealt with your request,
you can ask us to review our actions and decisions by writing to:

Information Compliance Team

The City of Edinburgh Council

Waverley Court Business Centre 2:1

4, East Market Street

Edinburgh

EH8 8BG or,

Email: [5][email address]

Please note that your request must be in a recordable format (email,
letter, audio tape etc.), and that you have 40 working days upon receipt
of this letter to ask for a review. You will receive a full response to
your review request within 20 working days of its receipt. Please quote
the reference number above in any future communications.

If you are not content with the outcome of the review, you can ask the
Scottish Information Commissioner to review our decision. You must submit
your complaint to the Commissioner within 6 months of receiving our review
response. The Commissioner can be contacted at:

The Office of the Scottish Information Commissioner

Kinburn Castle

Doubledykes Road

St Andrews

Fife

KY16 9DS

Telephone: 01334 464610

Fax: 01334 464611

Website: [6]www.itspublicknowledge.info/Appeal

Email: [7][email address]

Yours sincerely

Sue Brown

Information Rights Officer

Information Governance Unit

Level 2:1, Waverley Court, Edinburgh EH8 8BG Tel 0131 200 2340

[8][Edinburgh City Council request email]  [9]www.edinburgh.gov.uk

show quoted sections

References

Visible links
1. mailto:[FOI #962140 email]
2. https://www.lpf.org.uk/help-hub/publicat...
3. https://www.lpf.org.uk/help-hub/publicat...
4. https://www.edinburgh.gov.uk/homepage/10...
5. mailto:[email address]
6. http://www.itspublicknowledge.info/Appeal
7. mailto:[email address]
8. mailto:[Edinburgh City Council request email]
9. http://www.edinburgh.gov.uk/

Dear Edward

I have asked that this is dealt with as a review. The officer will contact
you once this has been logged.

Kind regards

Sue

Sue Brown | Information Rights Officer | Information Governance Unit |
Corporate Services | Tel 0131 529 7855 (currently diverting to my mobile)
| Ext 37855 | [email address] |
[email address]

From: Edward Jones <[FOI #962140 email]>
Sent: Tuesday, May 23, 2023 8:25 AM
To: Information Rights Officer 2
<[email address]>
Subject: Re: FOI Request Response (EDIR:41728)

Dear Sue (Information Rights Officer),

Thanks for the information provided.

Please could I ask you to reconsider your decision not to provide  (2) Investment Identifiers.

We really need either the ISIN or LEI identifiers for all investments to help us accurately analyse the data and ensure there are no mistakes.

Please note that other pension funds in Scotland and Wales have provided both ISINs and LEIs for all investments (e.g. Gwynedd Pension Fund [1]https://www.whatdotheyknow.com/request/g...). I can provide many more examples of other pension funds providing both LEIs and ISINs on request.

If necessary, if the information is not held by the investment managers, can you request that they (or can you) use this LEI lookup tool (or other tools) to find the identifier information for the investments: [2]https://www.lei-lookup.com/record/ .

The problem with us using such a tool is that it is easy to make mistakes as many investments have several variations/similar names. So ideally someone who is familiar with the pension funds investments would do this to prevent mistakes and ensure we have the correct identifier for each investment.

Sorry to have to come back to you, but it would really help us accurately analyse the data provided, and fairly portray to what extent the pension fund invests in fossil fuels.

Yours sincerely,

Edward Jones

show quoted sections

Mr Edward Jones

Date: 23/05/2023

Our ref: 41728

Dear Mr Jones

Acknowledgement of Review Request

Subject: Fossil Fuel Investments made by LGPS

I write to acknowledge your request for a review of Information Request which was received on 23/05/2023.

The Council must respond as soon as possible without undue delay, and by 21/06/2023.

If you have any questions or queries relating to this request in the interim, please feel free to write to this address, quoting reference 41728.

If you have any queries or concerns, do not hesitate to get in touch. Please quote the reference number above in any future communications.

Further information about your rights and accessing information is available on our website at: www.edinburgh.gov.uk

Yours sincerely,

Information Governance Unit

Dear Mr Jones,

I note the very last date that by you which you wish to receive this
response.

I will endeavour to reply to you as soon as possible, but I will out of
office from today until 15^th June.

Regards,

Alisdair Dawson | Information Compliance Officer | Information Governance
Unit | Corporate Services | [1][email address] |
Tel: 07902 401674

From: Edward Jones <[2][FOI #962140 email]>
Sent: Friday, June 2, 2023 8:48 AM
To: Information Rights <[3][email address]>
Subject: Re: Acknowledgement of FOI Review Request (edir:41728)

Dear Sue (information Rights Officer)

Our deadline for this project Is June 19.

Please could you kindly get us the information before then.

This project is a vital tool to promote renewable energy investments and divestment from fossil fuels by public sector pensions.

Yours faithfully,

Edward Jones

show quoted sections

Dear Mr Jones,

Thank you for your email. Please note that my colleague’s role in this
matter has concluded as you have requested a review of the Stage 1
decision. I am progressing this matter but I am awaiting information from
our pension and investment provider, Lothian Pension Fund, before I will
be in a position to respond fully.

Our deadline for replying to you is 21 June 2023.

Regards,

Alisdair Dawson | Information Compliance Officer | Information Governance
Unit | Corporate Services | [1][email address] |
Tel: 07902 401674

From: Edward Jones <[FOI #962140 email]>
Sent: Thursday, June 15, 2023 11:32 AM
To: Information Compliance <[email address]>
Subject: RE: Acknowledgement of FOI Review Request (edir:41728)

Ref 41728

Dear Sue  (Information Rights Officer),

Hope you are well.

I note you are back today so I wanted to press ahead with our request.

This is a vitally important project we are doing looking at positive investment in renewables and divestment from fossil fuels.

Please can you consider providing the ISINs, that so far all other Scottish and Welsh funds have done. For us this is that last piece in the puzzle.

I note the Section 16 response: "its disclosure by the authority so obtaining it to the public would constitute a breach of confidence actionable by that person or any other person."

I would say it is reasonable to assume that as the ISINs are in the public domain that this would not constitute a breach of confidence and the organisations and groupings with the investments would be aware of this and to institute a breach of confidence case would not cross their minds.

It is perhaps an understandable over cautious response  which we understand but believe has little support in actual  concrete caseloads.

The import of our project is wholly necessary in our opinion as investments into fossil fuels are contributing to climate breakdown. 

We hope you will see the reasonableness of our position and on this occasion provide the data.

Yours sincerely,

Edward Jones

show quoted sections

Our Ref:41728

Dear Mr Jones,

Further to previous correspondence, please find attached a copy of our
decision notice in respect to the review carried out.

Regards,

Alisdair Dawson | Information Compliance Officer | Information Governance
Unit | Corporate Services | [1][email address] |

show quoted sections

This email and files transmitted with it are confidential and are intended
for the sole use of the individual or organisation to whom they are
addressed.
If you have received this eMail in error please notify the sender
immediately and delete it without using, copying, storing, forwarding or
disclosing its contents to any other person.
The Council has endeavoured to scan this eMail message and attachments for
computer viruses and will not be liable for any losses incurred by the
recipient.
**********************************************************************

References

Visible links
1. mailto:[email address]

Dear Mr Jones,

I have passed your query onto my colleagues at Lothian Pension Fund who
will look into this for you.

Regards,

Alisdair Dawson | Information Compliance Officer | Information Governance
Unit | Corporate Services | [1][email address] |
Tel: 07902 401674

From: Edward Jones <[FOI #962140 email]>
Sent: Thursday, June 22, 2023 12:05 PM
To: Information Compliance <[email address]>
Subject: Re: Fossil Fuel Investments made by LGPS EDIR:41728 - Review
Reply

Dear Information Compliance,

Alisdair Dawson

Hope this finds you well.

As per my last email the total value of your fund when I have triple checked your annual accounts sheets is £9,757,152,216.00.

Please can you verify this.

You kindly pointed me to p86 of the accounts but this is just the beginning of the accounts tallies. Perhaps you could point me to the actual page which gives the final final total.

I have spent a fair amount of time now on the actual list of investments you pointed me towards:

[2]https://www.whatdotheyknow.com/request/9...

- converting it at my own expense to Excel and formatting columns correctly and I'm pretty sure my figure above is correct.

I would appreciate a quick reply if you'd be so kind.

Our project is a nationally significant one looking at fossil fuel divestment and renewable energy promotion.

Yours sincerely,

Edward Jones

show quoted sections

Hi Edward,

I’ve chased my colleagues at Lothian Pension Fund to reply to your
queries.

Regards,

Alisdair Dawson | Information Compliance Officer | Information Governance
Unit | Corporate Services | [1][email address] |
Tel: 07902 401674

From: Edward Jones <[2][FOI #962140 email]>
Sent: Tuesday, July 4, 2023 12:05 PM
To: Information Compliance <[3][email address]>
Subject: RE: Fossil Fuel Investments made by LGPS EDIR:41728 - Review
Reply

Dear Alisdair Dawson (Information Compliance),

Hope this finds you well.

It has now been two weeks since you said you would get an answer for me from your collleagues (June 22).

My question is here [4]https://www.whatdotheyknow.com/request/l...

so please can you get me the answer as soon as humanly possible.

Our project is a good one looking at the importance o promoting renewables over the burning of coal gas and oil.

Yours sincerely,

Edward Jones

show quoted sections

Dear Mr Jones

I refer to your emails dated 21 and 22 June 2023 sent to Alisdair Dawson,
Information Compliance Officer looking for clarification on EDIR:41728. 
Please see response below.

We have tried to identify the numbers you are reconciling and we think you
may have added market values of listed investments with commitments to
unlisted investments, which will not reconcile with the total market value
of all investments stated in the annual accounts.

In the list of holdings on our website we show the commitments to unlisted
investments rather than the market values of unlisted investments.

The net financial assets on page 86 of the annual accounts are the audited
figures for investments. See also this table on page 70:

The market value of assets is not £9,757,152,216.00 as you suggested in
your correspondence. The difference between the total market value of
listed assets, which you have, and the number in the annual accounts will
be the market value of the unlisted assets.

I hope that explains the difficulty in reconciling the numbers.

Kind regards

Donna

Donna Gammack| Business Support Manager | Lothian Pension Fund | PO Box
24158, Edinburgh, EH3 1GY | Tel 0333 996 1914 | [mobile number]|
[1][email address]| [2]www.lpf.org.uk

IMPORTANT NOTICE: This notice applies to this email and to subsequent
emails sent by anyone in the Lothian Pension Fund (LPF) group in any chain
of email correspondence following it.

This communication, and the information it contains, is intended for the
addressee named above and for no other person or organisation, and may be
confidential, legally privileged and/or protected in law. Unauthorised
use, copying or disclosure of all or part of this communication is
strictly prohibited and may be unlawful. If you are not the intended
recipient, please contact the sender immediately by return e-mail and
delete it and do not use, disclose or copy it. No liability is accepted
for viruses and it is the recipient’s responsibility to scan attachments
(if any).

For information on how we process personal data please visit
[3]https://www.lpf.org.uk/privacy

The LPF Group has its principal place of business at Suite 2, Atria One,
144 Morrison Street, Edinburgh EH3 8EX and comprises the City of Edinburgh
Council (acting in its capacity as the administering authority of the
Lothian and Scottish Homes Pension Funds), and its two wholly owned
subsidiary companies LPFI Limited and LPFE Limited (LPF Group). 

LPFI Limited is a limited company with registered number SC497542 and
authorised and regulated by the Financial Conduct Authority (Reference
Number 741954). Registered office: 4th Floor Saltire Court, 20 Castle
Terrace, Edinburgh, Lothian, EH1 2EN. 

LPFE Limited is a limited company with registered number SC497543.
Registered office: 4th Floor Saltire Court, 20 Castle Terrace, Edinburgh,
Lothian, EH1 2EN.

References

Visible links
1. mailto:[email address]%7c
2. http://www.lpf.org.uk/
3. https://www.lpf.org.uk/privacy

Dear Mr Jones

Unfortunately, the colleague who can answer your query is currently on annual leave.

We will respond as soon as possible.

Many thanks
Donna

Donna Gammack| Business Support Manager | Lothian Pension Fund | PO Box 24158, Edinburgh, EH3 1GY | Tel 0333 996 1914 | [mobile number]| [email address]| http://www.lpf.org.uk/

show quoted sections

Dear Mr Jones,

Please find attached a pdf with the market values of the fund’s unlisted investments in sterling. All requested data is included except for two items, which are marked as ‘NA’. The requested information is commercially sensitive and/or subject to contractual confidentiality restrictions.

Kind regards
Donna

Donna Gammack| Business Support Manager | Lothian Pension Fund | PO Box 24158, Edinburgh, EH3 1GY | Tel 0333 996 1914 | [mobile number]| [email address]| http://www.lpf.org.uk/

show quoted sections

Dear Mr Jones,

Apologies for the delay in responding. We have had to send your link to
our IT specialist to confirm that it is safe to open. Should you need data
in future, please email a spreadsheet rather than a link.  

As for the reconciliation, I believe you have the data on all of our
investments that you requested. The missing value is largely accounted for
by cash, which is reflected in note 13 net investment assets, which we
highlighted in our initial response (please see extract below), along with
“other assets”, which are not investment securities, including dividends
and other income due.

Kind regards

Donna

Donna Gammack| Business Support Manager | Lothian Pension Fund | PO Box
24158, Edinburgh, EH3 1GY | Tel 0333 996 1914 | [mobile number]|
[1][email address]| [2]www.lpf.org.uk

show quoted sections