Supermarket pension schemes commit to net zero

According to a statement from Tesco, both schemes will aim for their investments to be net zero by 2050. They will use their scale and influence to encourage the companies in which they invest to reduce their carbon emissions over time, setting interim targets and milestones along the way to 2050. 

“Evidence shows that environmentally responsible, well-run companies are likely to perform better in the long term, and better-performing companies tend to be better investments,” Ruston Smith, chair of the Tesco Pension Fund, said. 

“By investing responsibly, we can continue to deliver on our top priority of helping members’ money grow as much as possible and align our investments more closely to what we believe is important to Tesco colleagues,” he continued.  

The schemes’ pledge complements the commitment their sponsor Tesco announced in September, to achieve net-zero emissions across its value chain by 2050, including those generated by the products it sells and across its supply chains. 

It also supports the aspirations of Tesco colleagues, who, in a recent pensions survey, said that investing responsibly is important to “protect people’s rights, work towards a better society, and protect the planet by making sure investments help protect the world’s natural resources and habitats, and tackle climate change”. 

Current Tesco Retirement Savings Plan members are already able to access online platform Tumelo to view information on which companies are being invested in and give their views on how they are run. 

The Tesco PLC Pension Scheme and the Tesco Retirement Savings Plan’s provider Legal & General have signed up or are participants to the UN Principles for Responsible Investment, the Institutional Investors Group on Climate Change, and the Paris Aligned Investment Initiative Net Zero Asset Owner Commitment. 

This article originally appeared on MandateWire.com