The Church of England
a pension fund that helps tackle the climate crisis
The Church of England looks after around £2.8 billion. Together with the Climate 100 investor group, it successfully pushed Shell to link executive pay directly with carbon reduction targets.
In 2020, it went even further by launching its own £600m investment index for members that only includes companies making progress on the Paris Climate Agreement targets.
HSBC UK Pension Fund
Banking giant pushes for green pensions
In 2017, HSBC became the first investor in the Legal and General Future World Fund. This aims to limit exposure to firms that invest in fossil fuels and those that are energy inefficient while increasing investment in those that generate revenue from renewable sources and environmental solutions.
This represents around £1.85 billion of its £2.6 billion portfolio that is now focused on limiting harm to our planet and finding sustainable solutions for the future.
UK GOVERNMENT BODY LEADS WAY WITH PENSION FUND
The Environment Agency Pension Fund (EAPF) is one of the largest local government pension schemes in the UK, managing over £3.5 billion of investments for employees.
In 2013, the scheme announced that it aimed to invest 25% of its fund in companies that make a positive contribution to a green and sustainable economy, in part by investing in funds with an environmental theme.
In 2015, the fund added again to its environmental commitment by pledging to ensure that its investment portfolio is compatible with the Paris Climate Agreement.
Britain’s biggest pension master tRust spearheads sustainability
Nest is the government backed pension ‘master trust’, that many UK citizens have been enrolled in since 2012. It looks after more than £13 billion for around 9 million members (a quarter of the UK workforce).
The pension scheme has set the goal of being net-zero across its investments by 2050 or earlier, with an expectation it’ll halve carbon emissions by 2030. It is currently in the process of removing investment in fossil fuel activities like Arctic exploration of oil and gas, and also thermal coal mining and power generation.
Nest is a committed responsible investor and as of 2020 has gone completely tobacco-free. It is also increasing the amount of money invested in sustainable infrastructure, building on the £100 million it has already invested in renewable projects across Europe.
London Borough of Islington
Local authority pledges to cut carbon by 2022
The London Borough of Islington Pension Fund looks after £1.4 billion. In 2017, they began a plan to reduce their exposure to carbon by over 50 per cent by 2022.
They have also committed to investing at least 15 per cent of the fund into sustainable investments, such as low carbon technology and green infrastructure.
The fund also actively engages with the companies they invests in to urge them to reduce their carbon footprint and their reliance on fossil fuels.
Here’s what you can do TODAY to change pensions for the better