On the go:TPT Retirement Solutions, which has £10.5bn in defined benefit assets, has invested in a new climate-tilted index equity strategy launched by Legal & General Investment Management.
A spokesperson from the master trust confirmed that around £510m of DB assets were invested in the newly launched LGIM Low Carbon Transition Index Equity Fund range, which seeks to significantly reduce its exposure to carbon emissions in alignment with the 2050 net-zero goals.
LGIM’s strategy leverages its own climate scoring framework and will reduce initial exposure to carbon-emitting assets by 70 per cent compared with the broad market capitalisation benchmark.
The funds will have significantly lower exposure to fossil fuel reserves and higher exposure to companies with green revenues.
Cliff Speed, chief investment officer of TPT Retirement Solutions, said: “Climate change is one of the biggest risks facing our portfolios, and addressing this is vitally important to TPT as we try to reduce the risk of being invested in stranded assets.”
The low-carbon fund aims to achieve further reductions in exposure to carbon emissions over time, with the ultimate objective of aligning with net-zero emissions globally by 2050, consistent with the goals of the Paris climate change agreement.
This will be delivered through a suite of funds that will invest in listed equity assets, excluding coal and controversial weapons.
Speed added: “We are pleased to announce our investment in this fund range, in partnership with LGIM, which will enable us to meet our objectives of reducing the carbon exposure of our portfolios in a way that is aligned with our climate change policy and helps meet our regulatory commitments.”
This article originally appeared on Mandatewire.com
