Agenda item

(1)

request the Head of Corporate Resources to make arrangements, via the Council’s decision-making processes, to include the revised statement of draft ethical business/investment principles as referred to below in the Treasury Management Strategy and to adopt it as part of the Council’s Policy for investment:

ETHICAL INVESTMENT POLICY

“The Local Authority at times invests surplus funds with third party organisations and institutions and the Council’s core values will play a major role in making investment decisions which will be aligned where possible to the following four overarching core principles;

In deciding and then approving the counterparty list in which the Council will invest, the principles of security, liquidity and yield will always be the primary consideration to ensure compliance with statutory guidance. As part of this evaluation, the Council will consider ethical investment opportunities and identify and apply an appropriate weighting based on the Council’s Core Values/overarching core principles.

Where the Council deposits surplus balances overnight or for a short-term, investments will be made with financial institutions in a responsible manner (aligned to the overarching core principles/councils core values) where possible and in accordance with advice from its Treasury Management Advisor. In the event that the Council has surplus balances that it can invest for the longer term (e.g. terms over 1 year) it will exclude direct investment in financial products that do not contribute positively to society and the environment. This will include the principle that investment in specific financial products whose performance is driven by off-shore trading, financial malpractice, debt swops, short selling, the arms trade and tobacco industry will be avoided. The same rigorous criteria will be used to assess whether investment in certain countries will be contrary to Sefton’s core values.

It is recommended that the Head of Corporate Resources, to assess whether investment in certain countries will be contrary to Sefton’s core values,  

give consideration to the exclusion of those countries on theEU list of non-cooperative tax jurisdictions(the black list and the grey list), which aims to tackle external risks of tax abuse and unfair tax competition, within the Council’s Treasury Management Strategy. 

In order for these organisations to be included on the Council’s counterparty list they will be evaluated against the same criteria as other counterparties and assessed against the Council’s core values and ethical business and investment principles/policy, including the ethical weighting to ensure balance and investments are aligned with the new policy.

The Council’s Treasury Management Team will be continually engage on progress in this sector, understanding where possible that Council investments and deposits are aligned with its core values – for example, generating income for social reinvestment and not investing in such companies as highlighted above.

This approach will be supported by considering the opportunity for ethical investments as part of the development of the annual Treasury Management Strategy and engaging with the Council’s Treasury Management Advisors as to whether any investment is contrary to the Council’s values (including the ethical investment weighting). A specific section in the annual Treasury Management report will cover how the adopted ethical investment strategy is being applied to investment decisions.

The Local Authority publishes a list of its investments to ensure openness and transparency.”;  

(2)

request the Head of Strategic Support to make arrangements, via the Council’s decision-making processes, to adopt the following revised statements of ethical procurement principles/policy.

ETHICAL PROCUREMENT POLICY

“The Local Authority routinely procures goods and services with a range of providersand the Council’s core values will play a major role in making procurement  decisions which will be aligned where possible to the following four overarching core principles;

Procurement will enhance Social impact/value, including opportunities associated with national themes of Jobs: Promoting Local Skills and Employment; Growth: Supporting Sustainable Growth of Responsible Regional Business; Social: Healthier, Safer and more Resilient Communities; Environment: Protecting and Improving Our Environment; and Innovation: Promoting Social Innovation; and their outcomes and measures.

Implement and enhance a Procurement Strategy, based on the Local Government Association (LGA) National Procurement Strategy providing an effective mechanism for improving the social impact/social value from our contracted providers, particularly its focus on “Achieving Community Benefit”, which includes “obtaining social value”.

The local strategy for social value opportunities to include the increased emphasis in the refreshed Corporate Commissioning Framework and on developing an updated Social Value Action Plan.

Implement a stand-alone phased two-year Social Value Action Plan to include the guiding principles of catching up with those leading the field, going beyond compliance with the Public Services (Social Value) Act 2012, maximising the full breadth of Social Value outcomes and effectively measuring, monitoring and reporting delivery.

The Social Value Action plan will address the areas for development identified through the self-assessment against the LGA strategy and include tangible, clear, measurable, timebound targets to improve social value.

Maximise Social value opportunities connected with the joined-up approach across the Liverpool City Region – LCR Procurement Hub and work undertaken with Proactis and the Social Value Portal to join-up the Chest, the National Themes, Outcomes and measures and the online Measurement Tool”;

(3)

request the Head of Strategic Support to make arrangements, via the Council’s decision-making processes, to develop, adopt and implement a Social Value Action Plan in line with the following:

SOCIAL VALUE ACTION PLAN

“The guiding principles for development of our approach to Social Value are to catch up with those leading the field; Go beyond compliance with the Public Services (Social Value) Act 2012; maximise full breadth of Social Value outcomes; and effectively measure, monitor and report delivery.

Self-assessment against “Obtaining Social Value” in the LGA National Strategy will provide a framework whereby we can evaluate what we already do and identify areas for improvement including assessment against the following statements, “the extent to which…”:

·       the requirements of the Social Value Act are embedded into corporate policy;

·       social value awareness is embedded across all management levels;

·       social value themes, outcomes and measures are reported and used (including evaluating the usefulness of social accounting quantative measures to evaluate impact);

·       social value requirements are embedded in the commissioning process;

·       social value requirements are embedded in the procurement process;

·       obtaining social value is part of engagement and third-party relationships;

·       social value requirements in contracts are managed;

·       social value is embedded in a wider collaborative environment;

·       obtaining social value is communicated and reported;

·       social value is embedded and managed in the commissioning and procurement process.

·       These can all be addressed within the scope of the guiding principles, through specific, tangible and time-bound actions in a Procurement/Social Value Action Plan.”

The policy will be reviewed on completion of the SV action Plan; and

(4)

the Chief Legal and Democratic Officer be requested to submit a monitoring report to the meeting of the Overview and Scrutiny Committee (Regulatory, Compliance and Corporate Resources to be held in the June 2020 Committee cycle setting out progress made against each of the recommendations set out in the report and that thereafter, monitoring reports be submitted to the Committee on a six monthly basis.