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The decisions as the council's minutes record them. A plain-language summary follows once it has been written.
RESOLVED: The minutes from the last meeting on 25 November 2025, were reviewed and approved.
RESOLVED: The Committee: a) noted and accepted the decarbonisation and climate solutions targets, investment objectives, and preferences. b) noted and approved the ISS for consultation with Employers by 6 March 2026.
RESOLVED: The Committee noted the outcome of the employer consultation and approved the Funding Strategy Statement.
RESOLVED: The Committee noted the upcoming Committee dates.
The Chairman invited attendees to declare any potential conflicts of interest that they may have in relation to Clwyd Pension Fund (“the Fund”), other than those already recorded in the Fund’s register. There were no new declarations of interest.
Decision as recorded
RESOLVED: The minutes from the last meeting on 25 November 2025, were reviewed and approved.
There were no comments or questions, and the minutes of the meeting of the Committee held on 25 November 2025 were agreed. RESOLVED: The minutes from the last meeting on 25 November 2025, were reviewed and approved.
Decision as recorded
RESOLVED: The Committee: a) noted and accepted the decarbonisation and climate solutions targets, investment objectives, and preferences. b) noted and approved the ISS for consultation with Employers by 6 March 2026.
Mr Hughes introduced the background to this report and explained that under current legislation the ISS needed to be reviewed at least every 3 years. The updated ISS reflected the new Strategic Asset Allocation (SAA), amendments to the Responsible Investment (RI) policy and had been streamlined to remove unnecessary wording. Mr Turner explained that the ISS updates formally document the changes to the investment strategy agreed in November, including unwinding the Tactical Asset Allocation (TAA) mandate, to be compliant with anticipated Fit for the Future (FFTF) regulations and pooling requirements. As part of the new SAA an allocation to investment-grade corporate bonds was being introduced. If approved by the Committee, consultation with employers on the draft ISS will begin, and will close on March 6, in order to implement final changes and align with new FFTF regulations. Mr Turner highlighted that the exact regulations and guidance have not yet been finalised. Dependent on the enactment of legislation, it is anticipated that a further ISS update will be required by the end of September 2026 to ensure full compliance with regulations. Mr Dickson outlined the RI objectives in the updated ISS. The Fund’s existing overall target is to achieve net zero carbon emissions by 2045 or sooner, which was to be met through decarbonisation targets (compared to the 2021 baseline) within the listed equity portfolio: 36% reduction in ongoing greenhouse gas emissions intensity by 2025 which the Fund achieved, and 68% reduction by 2030. The draft ISS proposes the following changes: - Extension of the 2030 decarbonisation target in line with the existing decarbonisation curve, to a target of 83% reduction in ongoing greenhouse gas emissions intensity (compared to 2021 baseline) by 2035. This covers scope one and two emissions in the listed equity portfolio. - A target of 14% of assets to be invested in climate solution investments by 2030, meaning assets will be invested with the purpose of assisting in the creation of a low carbon society in the future. The Fund’s current allocation to climate solutions is 6% (mainly in private markets) and existing commitments are expected to increase this to nearly 11%. Mr Ettles asked how advisers see the split between the multi-asset credit and investment grade credit being implemented. Mr Turner said the investment strategy has been translated into the new Strategic Asset Allocation framework in order to comply with FFTF requirements from day 1. Going forward, Wales Pension Partnership (WPP) will be responsible for advising on and implementing investment decisions. This means the Committee will need to work closely with WPP to ensure the investment objectives are clear and the rationale behind the current investment strategy is understood. Mr Hibbert raised his concern about extending the 2030 target and amalgamating this into the 2035 target. He recognised this may be necessary, and requested that the Committee receive the actual and projected curves annually, to track progress and variance against the target. Mr Dickson confirmed that the curve is monitored annually and will be included as part of the climate governance report which is based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). RESOLVED: The Committee: a) noted and accepted the decarbonisation and climate solutions targets, investment objectives, and preferences. b) noted and approved the ISS for consultation with Employers by 6 March 2026.
Decision as recorded
RESOLVED: The Committee noted the outcome of the employer consultation and approved the Funding Strategy Statement.
Mr Bateman reminded members that the draft Funding Strategy Statement (FSS) was approved at the previous meeting and consultation with employers was carried out and ended on 23 January 2026. Mr Middleman explained that feedback was gathered through employer meetings, one-to-one sessions, and a formal consultation. Most employers accepted the parameters, with useful some feedback received around setting contributions as a percentage of pay or a pound amount to help with employers’ budgeting. Mr Middleman highlighted that the size of the sustainability reserve was discussed at the previous meeting and as result the consultation asked employers their preference between options of 3%, 5%, and 8% reserve. Most employers, including the three main authorities, opted for the 3% reserve. One employer preferred 5% and two preferred 8%. One employer commented that they found the assumptions to be prudent enough not to need a reserve. Based on the feedback, Mr Middleman said he was comfortable with setting the minimum contribution based on the 3% reserve, and highlighted that those employers who wish to contribute more and build an individual reserve may do so through the FSS. Other areas of the FSS reviewed following the previous meeting were the clarification of the definition of stranded assets and the solvency objective, particularly in the context of climate scenarios. The termination policy was also reviewed and changed to ensure it remains appropriate in current market conditions. Mr Hibbert raised concerns that in the event of an employer leaving the Fund, the Fund does not communicate with the affected scheme members. He was concerned that members may not understand the potential loss from leaving the scheme, and they may receive other advice or offers from their employer. He asked if the expectations of employers could include the opportunity to communicate directly with the scheme members. Mrs K Williams confirmed that if an employer leaves the Fund, they would provide the Fund with a schedule concerning the members, and as part of the legal process the Fund would then write to each member informing them of their options at the point of termination. In addition, following Mr Hibbert’s feedback at the previous meeting, the Communications team is now considering the possibility of holding seminars and one-to-one discussions with affected members. Cllr Wren noted that if the minimum reserve is set at 3%, the three employers that preferred the higher reserves of 3% or 5% may choose to pay higher contributions on that basis, and asked if employers can choose to overpay by any amount, or just the options of 3% and 8% that were consulted on. Mr Middleman confirmed that higher contribution rates can be agreed between employers, the Fund, and the Actuary. Employers can choose to voluntarily overpay the certified minimum, or may agree for the Actuary to certify the individual employer’s minimum contribution rate within the parameters, depending on which structure is most suitable. Mr Ettles asked Mr Middleman to expand on the principles of the flightpath and how this might evolve in the coming years. Mr Middleman explained that the principles of the flightpath will guide the Fund's direction in terms of affordability, sustainability, and funding. The flight path aims to provide more certainty of meeting objectives around solvency and long-term cost efficiency, which will be critical to operating within the objectives in the new pooling environment. The flight path is a key component in monitoring investment and risk objectives, providing stability and to potentially grow the surplus. Cllr Wren noted a formatting error in the glossary of terms, which will be amended prior to publication. RESOLVED: The Committee noted the outcome of the employer consultation and approved the Funding Strategy Statement.
Decision as recorded
RESOLVED: The Committee noted the upcoming Committee dates.
The Chairman asked the Committee to note the following future Committee meetings: · 2:00pm on Friday 6 March 2026 (Special Meeting) · 2:00pm on Wednesday 25 March 2026 · 9:30am on Wednesday 17 June 2026 RESOLVED: The Committee noted the upcoming Committee dates.
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