The London Pension Funds Authority (LPFA) has launched a net-zero plan that includes a commitment to reduce Scope 1 and Scope 2 emissions by 75% by 2030.
Goals for the £7.6bn fund have been set out in an Investor Climate Action Plan (ICAP) covering the portfolio, its assets and operations. Attention will be focused initially on listed equity holdings, which represent 50% of the fund (£3.8bn).
Robert Branagh, the LPFA’s CEO, said: “Climate change poses a risk to society, businesses, our assets and, ultimately, our ability to pay pensions. It is an issue of significant concern for our members and wider stakeholders, but the transition to a net-zero global economy also presents us with sustainable investment opportunities.”
The LPFA was established originally to manage the pension assets of the former Greater London Council, and now also includes the assets of the British Film Institute, Horniman Museum, Guinness Trust, the armed forces charity SSAFA and others. It is now part of the Local Pensions Partnership pool along with the Lancashire County Pension Fund and the Royal County of Berkshire Pension Fund.
Peter Ballard, the LPFA’s director of funding and risk, added: “We want to drive change in the real world so that the economy as a whole achieves net-zero emissions. This means that we’ll work closely with our delegated asset manager, LPPI, and collaborate with like-minded investors to make sure that we are pushing companies along their own net-zero path.”
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