ESG spotlight: A roundup of the latest news on environmental, social and governance initiatives, with the Universities Superannuation Scheme targeting net-zero carbon emissions, the Work and Pensions Committee launching an inquiry into stewardship, and COP26, and new research showing that almost half of savers would prefer greener pensions.
USS targets net-zero carbon emissions
The £67.6bn USS has pledged to achieve net-zero for carbon emissions by 2050 and is considering a series of changes to its investment portfolio, including growing its allocation of low-carbon investments. The scheme has already invested or committed a total of £1bn to low-carbon investments, such as renewable energy, but said it is looking to build on this as part of a new pledge to cut carbon emissions and reach net-zero by 2050. The scheme is working on a “comprehensive strategy” to achieve this target, it noted. Other “likely” actions include reviewing the scheme’s benchmarks to account for ESG factors and divesting from high-carbon sectors. In 2020, the scheme announced an initial exclusion list covering tobacco manufacturers, the coal mining industry (where coal mining makes up 25 per cent or more of revenues) and companies with ties to the cluster munitions industry, the white phosphorus trade, and the landmine industry.
This article originally appeared on Mandatewire.com
Work and Pensions Committee launches stewardship enquiry
The Work and Pensions Committee launched an inquiryon Thursday into the government’s approach to ensuring pension schemes consider the risks to funds posed by climate change and the role schemes can play in meeting emission-reduction targets. Ahead of the COP26, which will take place in Glasgow in November, the committee is seeking views on how the government’s approach to pension stewardship can inform and should be informed by approaches taken internationally, and how schemes can be supported to make climate-conscious investment decisions. Labour MP Stephen Timms, chair of the committee, noted that the inquiry will look into how the government can “ensure schemes consider the risks to pension funds posed by climate change and provide help for them to support emerging technology through greener investments”.
Almost half of savers would choose a ‘green pension’
Savers would like their savings to do good in the world, as research reveals that 44 per cent of pension holders would switch to a green pension if offered one by their provider, equating to almost 18m savers across the country. The survey, conducted by YouGov and commissioned by Make My Money Matter and which polled 1,022 adults with a pension, confirmed that savers want their investments to build a healthier planet for retirement, and also revealed that 61 per cent of pension savers want their pension to play an active role in fighting climate change. Individuals appear to be kept in the dark about where their pensions are actually invested, since 80 per cent of respondents have never considered whether their monthly contributions could be accelerating global warming. In fact, the research showed that 63 per cent of savers admit to having no idea where their pension is currently invested.
