ESG presents LGPS with investment innovation opportunities
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Photo by CHUTTERSNAP on Unsplash
Sponsored interview: Dawn Turner of Quinbrook talks about the opportunities in environmental, social and governance issues for LGPS.
LGPS has the opportunity to innovate in its investment portfolio as the world seeks to mitigate the effects of climate change, according to one of the sector’s leading experts.
In comments to Room151 (watch the full interview here), Dawn Turner, a former chief executive with Brunel Pensions Partnership and former chief pensions officer with the Environment Agency, said that as investors turn away from fossil fuel products to meet 2030 targets to cut greenhouses gases by 55%, other options come into view.
Now a member of the management advisory board at Quinbrook Infrastructure Partners, Turner said LGPS is well aware of solar and wind energy opportunities, but there are others. “You move onto products that are being invested in alongside those, such as batteries and the infrastructure that will be needed for electric vehicles, for grid support, community energy networks and green retailing.”
She added: “Innovation comes when you have companies, such as Quinbrook, there are many others, that are looking ahead and saying, ‘What is going to be needed and what do we need to invest in now so that we can take forward areas of renewable energy and cut carbon emissions?’”
Turner said that ESG concerns have become increasingly important to LGPS even though there had been scepticism early on. Regulation, best practice, guidance, collaboration and information sharing, she said, has enabled the LGPS to shift from holding a diversity of views to being able to unite in being a “leading, powerful investment institution” able to influence the work of fund managers.
She said there are more opportunities ahead for LGPS, especially as the government implements its ten-point plan for green industrial strategy.
“The opportunity for the LGPS,” said Turner, “is to look at the UK economy and see what it can do with its investments to make the UK thrive again.
“That doesn’t mean you would ignore other countries or emerging markets. But I would say Covid, in itself, has made us reflect our own regional areas.”
To watch the full Dawn Turner interview click here.
Photo by CHUTTERSNAP on Unsplash
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