A new chapter for Welsh pensions: will it reflect our values?

Wales is at a turning point in how public pension money is invested.

On 1 April 2026, the Wales Pension Partnership (WPP) will launch a new investment management company, IMCo, bringing decisions about billions of pounds of Local Government Pension Scheme assets closer to home.

Done well, it’s a real opportunity to do things differently. To shape an approach to investment that reflects what Wales stands for: supporting our communities, taking responsibility for our global impact, and building a fairer, more sustainable future.

But that isn’t guaranteed. What happens next depends on the choices made now.

Wales already has a strong foundation to build on.

The Well-being of Future Generations (Wales) Act 2015 set out a clear vision: that decisions made today should protect the wellbeing of people and planet, now and for the future. That vision has helped shift expectations, including around how public money is used.

Across Wales, people have been pushing for pension investments to better reflect these values. From fossil fuel divestment campaigns to calls for greater transparency and ethical investment, momentum has been building in communities, councils, and civil society.

Conversations around a national pensions summit have made one thing clear: there’s both the public appetite and the practical groundwork for a more responsible pension system in Wales.

A real opportunity and a real risk.

The creation of IMCo could help take that work further. With more control held within Wales, there’s a chance to:

• Align investments with climate and net zero goals
• Invest in local projects and communities
• Embed human rights and global responsibility into financial decision-making
• Strengthen transparency and democratic accountability

But there’s also a gap we can’t ignore. As things stand, IMCo will sit outside the legal scope of the Future Generations Act. It can still choose to follow its principles, but it won’t be required to. At such a pivotal moment, that distinction matters.

Making this moment count.

If this new approach is going to live up to its potential, alignment with the Future Generations Act needs to be intentional, not assumed.

That could look like:

• A clear public commitment from IMCo to operate in line with the Act’s principles
• Strong expectations from partner councils and pension funds
• Consideration by the Welsh Government of how best to ensure consistency and accountability

What do we want our money to do?

This goes beyond structures and governance, and straight to the role Welsh public money plays in the world. Right now, in the face of climate crisis and deepening inequality, pension investments aren’t neutral.  They either add to the problem or help build something better.

Wales has already set a direction through the Future Generations Act. IMCo is a chance to follow that through in practice, not just on paper. To build a pension system that:

• Invests in renewable energy, warm homes, and resilient local economies
• Avoids harm to people and ecosystems not just in Wales, but globally
• Reflects the values of the people whose money it manages

A system that feels consistent with what Wales stands for, and something people across the world can get behind.