28 October 2021
With COP26, the UN Climate Change Conference in Glasgow, just days away, the Wiltshire Pension Fund has set a pathway towards the goal of net zero investments by 2050 to reduce carbon emissions and meet the demands of its members.
The fund is committed to a low carbon portfolio, by ensuring it invests in global equities that are weighted according to their carbon intensity. This approach has enabled the fund to reduce its carbon footprint without sacrificing any financial returns for its members.
To take further steps to reduce emissions, the fund has also collaborated with other funds, as part of the Brunel pool, to create a new Paris-aligned investment benchmark, which looks at - and invests in - companies' abilities to transition to a low carbon economy. Some companies are excluded if they invest significantly in coal, oil and gas, while the rest are weighted based on a number of criteria that relate to how environmentally progressive their operations and policies are.
Investing in the Paris-aligned passive portfolio will help the Wiltshire Pension Fund to achieve its investment strategy statement goal of net zero by 2050, while also protecting investments from risks of exposure.
Cllr Richard Britton, Chair of the Wiltshire Pension Fund Committee, said: "We are very aware that responding to climate change is important to our scheme members, and we are fully committed to taking action against this risk in order to safeguard the Fund's investments. Working collaboratively with our partner funds and the Brunel pool, we are proud to have helped develop a forward-thinking, cost-effective strategy to help us meet our carbon reduction goals."
Further information on the pathway to net zero, the fund's responsible investment policy, climate strategy and plan can be found on the page.
Further information on the Brunel transition of passive funds to new FTSE Russell Paris-aligned benchmarks can be found on the Brunel Pension Partnership website.