Lord Hendy (Lab)

My Lords, what a pleasure it is to follow the noble and learned Lord, Lord Thomas of Cwmgiedd, in supporting the Government’s amendments and Amendment 167 in the name of the noble Baroness, Lady Hayman, and others, which all propose that the Secretary of State should publish statutory guidance for trustees in investing their funds. In Committee, the noble Baroness, Lady Janke, and I proposed an amendment to require regulations to guide trustees’ investment; in particular, so that trustees should avoid incompatibility with international law. My noble friend the Minister was against regulating in a way which would constrain the autonomy of trustees, and we have not pursued that amendment on Report. The proposal for guidance rather than regulations is an attractive one. My request today is that the factors to which the guidance should have regard should include not just pension law but the international legal obligations of the UK, to ensure that pension scheme investments do not, directly or indirectly, cause or contribute to activities which are inconsistent with the provisions of human rights and international law; otherwise, UK pension schemes, particularly those which are an arm of the UK state, such as the Local Government Pension Scheme, risk involving the UK in breaches of its international obligations. The UK is obliged not to authorise, explicitly or implicitly, serious breaches of peremptory international norms by other states; nor must it render aid or assistance to any entity involved in serious breaches of such norms by another state. The UK must co-operate with other states and take all reasonably available measures to bring an end to any violations of such norms by another state. This self-evidently applies to the entities involved in the activities of the Israeli Government in Gaza and the West Bank, but, sadly, it applies to many other states too. It also applies to entities in supply chains which involve the UK and other states breaching the minimum labour standards of the International Labour Organization and the Council of Europe through its European Social Charter. I ask my noble friend the Minister: will she ensure that the guidance proposed encourages pension fund trustees to take into account, among other things, the obligations of international law in making their investment decisions? Pending that guidance, an expression of encouragement from her would be much appreciated.