5. What assessment has the Commission made of the impact of the economic sanctions on Russia on staff and Members' pension funds? OQ57807

Dirprwy Lywydd, can I first of all thank Peter Fox for this question? Obviously, the question of where funds are invested is of very great interest to Members at this time, who, rightly, would not wish to see funds invested in any Russian entities. Now, clearly, the Commission has no means to influence the allocation of the Members' pension scheme assets. That power rests entirely with the pension board, which is independent of the Commission, and the decision on where to invest is based on advice that's received from the board's investment advisers and is agreed by the pension board as a whole. So, whilst the Commission are aware of the issues, it is not for the Commission itself to make a financial assessment—it's for the pension board.

I understand that the pension board have issued a statement very recently to Members regarding this matter. It can be viewed on the Members' intranet page. Questions about the Members' scheme's investments should be addressed to the pension board. I know that Mike Hedges, as a Member-nominated trustee, is very happy to answer any questions that Members may have.

Now, the second fund, being the support staff pension scheme, is run by Aviva, and decisions on the investments of support staff pensions rests with their specialist investment advisers and the support staff themselves. So, the Commission, again, is not involved in deciding how the assets are invested for that scheme either. The Commission's pensions team have been engaging with Aviva though, who have confirmed that they have very little holdings in Russia, and the situation is under constant review. The team have worked with Aviva to provide a communication for support staff addressing concerns that they may well have and, again, this can be viewed on the intranet pages.

Now, with regard to the third fund, that being the Commission staff—. The civil service pension scheme, which is the third fund, that's an unfunded scheme and, therefore, it has no assets to invest. Benefits are paid through that scheme from tax revenues rather than from assets.

Thank you, Commissioner, for that response. I think that was very helpful for Members and others watching in. As we all know, there is a wide-ranging movement across the UK and the wider world to disinvest from Russia based businesses as well as stocks and shares. Of course, in normal times, it's usual practice to use things like pension schemes to invest in foreign stocks and shares, but Russia's illegal and unnecessary invasion of Ukraine has meant that it is important to ensure that public money is not inadvertently being used to support a regime that has shown that it has no respect for democracy or the rules-based international order.

Will the Commission confirm its commitment—and I think I know the answer—to working with the pension board and other stakeholders to ensure that any investments derived from staff and Members' pension schemes are disinvested from any Russia based businesses? And could you answer: how is the Commission working with stakeholders to ensure that the relevant pension policies support responsible investments?

Could I thank Peter Fox and assure him that we will undertake to work with the pension board to ensure that all the investments are ethical investments? Obviously, the Welsh Government itself, through the economic contract it has with businesses, is driving a values-led economy, and we as Commissioners are also keen to make sure that, where we invest, we invest in businesses—primarily in Wales when we can, but businesses elsewhere as well—that have sound ethical foundations to them. There is a particular section on the intranet, the statement from the board, which states that,

'In March 2022, in line with the investment manager's fair value pricing policy, the decision was  taken by the investment manager to mark this holding'— that being that tiny Russian element of holdings—

'at zero.'

That indicates that the board are working very, very closely with Aviva's experts to ensure that no money can be invested in Russian entities. It would be absolutely wrong at this moment in time, as you say, to invest in any Russian businesses, and so Commissioners and the pension board are very alive to the need to make sure that all investments are carried out in an ethical way and invested in businesses that are ethical as well.

Thank you, all.