The Norfolk Pension Fund has confirmed it is investing in affordable housing locally, with officers telling the Pensions Committee on 15 September that these investments deliver returns in line with the fund's financial obligations to pensioners.

The Head of Funding and Investment told the committee that local investment objectives — including affordable housing — could be achieved while still meeting the fund's fiduciary duty to generate risk-adjusted returns for its members. Specific performance figures for the affordable housing investments were not disclosed in the public session, but officers agreed to provide further details to members outside the meeting.

The update came as part of a wider responsible investment report covering the six months from January to June 2026. The committee was told the fund's approach to environmental, social and governance (ESG) matters is based on active stewardship and engagement with companies rather than blanket exclusions from sectors like fossil fuels.

Officers acknowledged that companies operating in carbon-intensive industries could still play a role in the economic transition to net zero, and that investment decisions must remain guided by the fund's legal duty to act in the best financial interests of its beneficiaries.

A committee member also questioned whether any future government direction on local investment could conflict with those fiduciary duties. Officers said current local investments, including the affordable housing holdings, showed the two goals were compatible.

The fund's Investment Exclusion and ESG Statement, which consolidates existing policies, will be updated whenever the underlying policies change rather than on a fixed review cycle, officers confirmed.