Administering authority the London Pensions Fund Authority (LPFA), and £8bn Local Government Pension Scheme (LGPS) fund, has announced that over 80% of its fund is being managed for climate resilience with actions to reduce the impact of climate change now in place.
Targets around reducing emissions or the planning of climate change related actions, have been, or are being, set for the majority of assets.
The announcement comes as the fund publishes its latest progress report on the targets set to date.
The LPFA made a net-zero commitment in 2021.
The fund began its climate action journey in 2022-23 looking at global equities – at the time around 50% of the fund – and has been expanding coverage and reporting on progress each year.
In 2023-24, the fund added targets to the portion of their real estate holdings and corporate fixed income assets directly managed by LPPI, their delegated fund manager.
In its latest report, the fund shares that they have further expanded coverage to the rest of their real estate holdings, corporate fixed Income and infrastructure.
“Our climate action commitment is a strategic move to ensure that we are investing in opportunities that help us pay members their pensions when they come to retire,” said Jo Donnelly, CEO of the LPFA (pictured).
“Of course, the investments that we make will also support new, skilled employment in sectors supporting the energy transition, help to reduce air, water and noise pollution, improve public health, protect biodiversity and help bolster the UK’s energy security,” added Donnelly.
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