The Brent Pension Board convened on Monday, March 23, 2026, to discuss critical updates concerning the Brent Pension Fund. A key focus of the meeting was the Local Authority Pension Fund Forum's (LAPFF) engagement activities, particularly concerning water stewardship and environmental, social, and governance (ESG) commitments of major corporations.
The Board received an update on LAPFF's ongoing engagement with UK water utilities regarding storm overflow pollution and regulatory reforms. LAPFF reported that in Q3 2025, it met with the Chair and outgoing CEO of Pennon Group, which owns South West Water. Pennon confirmed active engagement with OFWAT and DEFRA, highlighting urgent action over discussion. South West Water reported a more than 50% reduction in pollution incidents in the first half of 2025 compared to the same period in 2024, with a target to reduce average spills from 41 in 2024 to 16.5 by 2030. The company also strengthened its data governance and CEO succession planning.
Similarly, Severn Trent reported a 65% reduction in spills and a 72% reduction in spill duration year-on-year in the first half of 2025. The company expects average spills to fall to approximately 18 per overflow by December 2025 and has a £14.9bn AMP8 programme that includes investment in river health and storm overflows.
These engagements are taking place against a backdrop of significant regulatory change. In July 2025, the UK government announced the abolition of OFWAT, with its functions migrating into a new superregulator
that will combine the responsibilities of OFWAT, the Environment Agency, Natural England, and the Drinking Water Inspectorate. This is described as the most significant overhaul of water sector regulation since privatisation.
LAPFF also reported on its engagement with The Coca-Cola Company regarding its water strategy and ESG commitments. Coca-Cola reiterated that water remains its top priority, stating that since 2015, it has replenished more than 100% of the water it uses in finished products globally, reaching 148% in 2023. However, LAPFF raised concerns that Coca-Cola appears to have rolled back several water-related goals, including removing time-bound targets for sustainable agriculture and extending other goals, such as watershed restoration, to 2035.
LAPFF is specifically pressing Coca-Cola on its 2035 Water Strategy. Key areas of concern include the removal of its 100% sustainable sourcing goal for key agricultural ingredients, the extension of its pledge to improve 60 critical watersheds by 2030 to a less ambitious 2035 deadline with a narrower location-based focus, and the omission of water quality, WASH (Water, Sanitation, and Hygiene), and ecosystem protection from its 2024 environmental goals. Governance concerns were also raised regarding the combined Chair/CEO role and the extended tenure of several non-executive directors.
While Coca-Cola highlighted its Foundation's $40m commitment to WASH projects in high-stress areas, LAPFF noted this initiative is limited in scale compared to the company's global water footprint. Coca-Cola stated it would consider LAPFF's feedback and engage in ongoing dialogue.
The Brent Pension Board noted the report on LAPFF's engagement activities, recognising that its membership in LAPFF demonstrates the Fund's commitment to Responsible Investment and engagement to achieve its objectives.
Further details on the Brent Pension Fund's performance and investment strategy can be found in the Public reports pack for the Pension Board meeting here.
LAPFF Engagement Report Sep 2025 provides more information on the LAPFF's activities.
