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SubscribeThe Tyne and Wear Pension Fund (TWPF) has hit its interim carbon-cutting targets two years ahead of schedule.
The £12.5bn fund is part of the £369bn Local Government Pension Scheme and is aiming to become net zero by 2050 or sooner, as set out in the Climate Change Policy it adopted in 2021.
The fund’s ‘climate roadmap’ also set out interim targets, namely to reduce carbon emissions across its investment portfolio by 30% to 35% by 2025 and 50% to 60% by 2030.
TWPF said it has now reduced emissions by almost 40% from its 2019 baseline, surpassing its 2025 target two years early.
Anne Walsh, chair of the Pensions Committee, said she was “delighted with the progress made so far”.
She stressed the fund has “a strict policy which requires that investment managers take into account non-financial factors when selecting, retaining, or realising its investments”.
However, Walsh did acknowledge that “there is still much to be done and we will continue to actively engage with investment managers and companies to improve climate outcomes and consider climate risks in our investment decisions”.
She stressed that “it is essential that investment decisions are made in a financially sustainable, balanced manner, to keep the costs of the scheme at an affordable level. This helps the fund’s employers in providing vital front line public services and also helps protect members’ benefits.”
TWPF’s announcement comes only weeks after the fund signed up to the UK Financial Reporting Council’s Stewardship Code.
“The code is considered to be a high level of certification of an investor acting in a responsible and sustainable manner,” Walsh said.
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