Climate risk is arguably the biggest financial risk that we face as a Fund and for the entire World. In the Fund's best financial interests, we have set a target of net zero across all investment portfolios by 2050. This page contains information on how we view this risk, and what we are doing about it.
*All content from the video is contained within this webpage.
Wiltshire Pension Fund is a long-term investor, and therefore needs to consider the potential impact of issues such as climate change when setting the investment strategy.
Our climate risk work is based on scenario modelling, which enables us to put numbers around the risk, and make decisions based on what is the best financial outcome for the Fund. Managing climate risk is about more than just decarbonisation, we also focus on driving positive change through engagement, and identifying the investment opportunities which are presented by the transition to net zero.
If the Fund is invested in companies which aren't prepared to adapt to the challenging landscape of the future, these companies will likely fail and the Fund will lose money.
Biodiversity and nature are closely linked to climate change, and scientists believe that there can be no net zero future without a reversal of biodiversity loss. We are in the process of developing ways to manage biodiversity and nature-related risks, alongside identifying investment opportunities in this area. We have broadened our reporting to include information and case studies around nature, publishing our first ever Climate and Nature Report.
How we manage climate risk:
- Focusing on top emitters
- Planning to divest from fossil fuels by 2030 and ensure all remaining holdings can transition
- Investing in forward-looking companies
- Understanding biodiversity risks
- Transparently reporting our efforts
- Allocating to renewable infrastructure and climate solutions
- Working with investment managers to evolve their approach
The information in our report is intended to help illustrate the wide range of work that we do, alongside monitoring our decarbonisation progress. Through this work, we aim to achieve real World change, and create a sustainable future for our Fund.
*If the above doesn't load please click the Pdf link: 2024 WPF Climate and Nature Report (PDF, 5 MB)(opens new window)
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