On the go: The Church of England Pensions Board plans to allocate £600m to a fund tracking a climate-friendly index, aiming to align its pension schemes with the goals of the Paris agreement.
The investment will be made in the FTSE Developed ex-Korea TPI Climate Transition Index, which was created in collaboration with the Church of England Pensions Board and the Transition Pathway Initiative.
The fund provides exposure to opportunities arising from the global green economy, with overweights based on FTSE Russell’s green revenues data model.
Adam Matthews, co-chair of TPI and director of ethics and engagement for the Church of England Pensions Board, noted that last month Bank of England governor Mark Carney challenged people to ask what their pension funds are doing to address the financial risks of climate change.
“Working over the past 18 months we have developed an answer that enables passive investors to play their part in supporting the goals of the Paris climate agreement,” Mr Matthews said.
“The message is clear to all publicly listed companies: put in place targets and strategies aligned to Paris and be rewarded with inclusion in the index, or work against the long-term interests of beneficiaries and wider society and be excluded.
“The Church of England Pensions Board will no longer be invested in several household names in the oil industry. The index leaves open a path for any one of these excluded companies to transition in line with the Paris agreement and claim their place in the index at a later date.”
