LPFA divests from extractive fossil fuels, PIC invests in urban project

LPFA eliminates extractive fossil fuel investments

The £6.8bn London Pensions Fund Authority has announced that it no longer has any extractive fossil fuel holdings within its global equity portfolio, which makes up 46 per cent of the fund’s total assets. The fund has also made a commitment to reach net zero emissions by 2050. In December 2021, Local Pensions Partnership Investments, the main investment manager for the fund, took the step to exclude extractive fossil fuel companies from the LPPI Global Equities Fund, in which the LPFA is invested. The divestment decision recognises that while all companies are likely to be impacted by climate change, some sectors face greater risks due to their emissions intensity or involvement in traditional energy production based on fossil fuels. These will need to be significantly curtailed to meet global emissions reduction targets and so pose a financial risk to the LPFA fund. The LPFA announced its commitment to net zero last September as it adopted the Institutional Investors Group on Climate Change Net Zero Investment Framework. The fund will target net zero carbon emissions by 2050 and set an interim target for 2030. 

This article originally appeared on MandateWire.com

PIC backs urban regeneration in Milton Keynes

The £47.6bn Pension Insurance Corporation has agreed to fund and acquire a key, centrally located development in Milton Keynes for its third build-to-rent project. The £80mn redevelopment of a brownfield site will provide 306 new residential apartments, 43 of which will be affordable housing. The Milton Keynes development is fully owned by PIC and was formerly a vacant office block known as Bowback House. It has been purpose-designed for the rental market. PIC will retain it for the long term, using the rental cash flows to match the company’s future pension payments. It will use air source heat pumps for hot water and green electricity for heating, including its own solar panels, which will help the transition to a net zero economy. Once complete, the building will provide around 25,500 square feet of external amenity space and around 10,000 square feet of internal retail and amenity space for residents, anticipated to include 24-hour concierge, residents’ lounge, gym, fitness studio, sky lounge and multi-use games room. The development is due to complete in late 2024 and will employ around 750 people on site during construction. 

This article originally appeared on MandateWire.com