We are pleased to launch our Net Zero Strategy for financed emissions, building upon our commitment made in early 2022 to achieve Net Zero scope 1 & 2 carbon equivalent (CO2e) financed emissions by 2050 or sooner for listed equities, corporate bonds, sovereign debt, and property. This also included a 50% reduction in financed emissions by 2030 for listed equities and corporate bonds.
The strategy, outlines the rationale for our belief in creating a realistic pathway for achieving Net Zero. It includes a series of interim milestones across a range of assets classes, detailing both current position and the milestones that must be achieved.
With the backdrop of recent Government policy changes, LGPS Central remains focused upon the milestones laid out within the strategy and will continue to engage to influence responsible investment policy.
The framework for our Net Zero Strategy was constructed based on the Net Zero Investment Framework established by the Institutional Investors Group on Climate Change (IIGCC). Additionally, numerous industry guidance documents, including the Target Setting Protocol provided by the UN-convened Net-Zero Asset Owner Alliance, were consulted to employ appropriate climate methodologies, and formulate innovative criteria for our engagement and alignment targets.
The strategy follows the strengthening of the Responsible Investment Team at LGPS Central as we have recently welcomed climate change expert Ed Baker to the Team. Ed’s previous experience includes advising the UK’s Foreign Office on green finance and working for the Principles of Responsible Investment (PRI) as Head of Climate Policy.
Patrick O’Hara, Director of Responsible Investment & Engagement at LGPS Central said, ‘Our commitment to Net Zero is intrinsically linked to our organisational objectives. Our Net Zero Strategy is very much aligned to our stewardship strategy and outlines a practical pathway to achieving our targets. We will continue to engage with portfolio companies to improve their Net Zero strategies and performance as we believe it is the best way to achieve real-world decarbonisation. We will continue to communicate progress to our Partner Funds via our innovative and ever evolving Climate Risk Monitoring Service.’
A key milestone that shaped target selection was the ambition to add the carbon foot printing of private-market assets to our existing climate risk monitoring service by 2025. The achievement of this target will ensure that we can track the financed emissions of our entire pooled assets in 2026. Carbon footprints are also a key consideration in the selection of portfolio companies for stewardship programs in both public and private markets.
Even with the backdrop of recent Government policy changes, LGPS Central remain totally committed to their 2050 (50% reduction by 2030) Net Zero target and the interim targets outlined in our strategy.
Download our Net Zero Strategy for Financed Emissions here.