On the go: The Border to Coast Pensions Partnership, which handles the assets of 11 Local Government Pension Scheme funds worth a collective £55bn, has committed to achieve net zero across its entire investment portfolio by 2050 or sooner in recognition of the urgent need to tackle climate change.
As part of its first standalone climate change policy, the pension pool will use the Institutional Investor Group on Climate Change’s Net Zero Investment Framework to set out a roadmap over the next year, defining how it will support its commitment.
The roadmap will include setting interim targets for 2030, supporting efforts to achieve up to a 50 per cent global reduction in CO2 emissions, and creating and evolving investment propositions aligned with net-zero emissions by 2050.
The LGPS pool will work with the industry to improve carbon data disclosure and transparency in fixed income and private markets, where information is currently unreliable. It is also planning to implement a revised stewardship and engagement strategy, with a clear escalation and voting policy, that is consistent with being net zero across its investments by 2050 or sooner, the fund announced.
Chris Hitchen, chair at Border to Coast, said: “Climate change is an existential threat to societies across the world — doing nothing is not an option. We have a key role in not just managing the impact of climate change on our portfolios, but also in supporting the investment needed to transition to a low-carbon future.”
Once the climate change policy has been adopted, the pool will, among others, exclude pure coal and tar sand companies from its investments, encourage companies to publish targets and report on steps taken to reduce greenhouse gas emissions, work collaboratively with other asset owners to strengthen its voice and engage collaboratively alongside other institutional investors with policymakers through membership of the IIGCC, it stated.
“Given the scale of the issue, collective action is required. Together with our partner funds, we will work with like-minded investors to drive positive change in the companies we invest in, engage with policymakers and regulators to highlight where systemic solutions are required, and seek to understand how developed economies can support developing and emerging markets in this essential journey,” Rachel Elwell, the pool’s chief executive, said.
In addition, Border to Coast intends to become a signatory to the Net Zero Asset Managers initiative later this year.
This article originally appeared on MandateWire.com
