LPFA removes last extractive fossil fuel company investment
0The London Pensions Fund Authority (LPFA) has divested all extractive fossil fuel holdings, following last September’s announcement that it has committed to achieving net zero by 2050.
There are now no longer any fossil fuel investments in the fund’s global equity portfolio, which comprises 46% of the fund’s £6.9bn (€8.2bn) total assets. This divestment follows a decision made in December 2021 by Local Pensions Partnership Investments, which undertakes day-to-day management of the LPFA’s assets.
The LPFA is the largest LGPS fund in London. It said the move was a recognition that, while all companies will be impacted by climate change, some sectors face heightened risk due to their activities, such as high emissions and involvement in energy production reliant on fossil fuels.
Robert Branagh, CEO of the LPFA, said that the decision “will be welcomed by our members who are increasingly keen on seeing the LPFA play a leading role in tackling climate change”.
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