Paris Aligned Asset Owners Progress Report

While COP27, the UN's conference on climate change, is taking place in Egypt, Wiltshire Pension Fund were very interested to see the timely publication of the very first progress report from the Paris Aligned Asset Owners initiative. 

The Paris Aligned Asset Owners initiative (PAAO), is an international group of asset owners committed to supporting the goal of net zero greenhouse gas emission by 2050 or sooner.  The Paris Aligned Asset Owners initiative's (PAAO) first Progress Report "showcases innovation and best practice amongst asset owners for turning net zero commitments into action". 

We are delighted to be featured in the report, with two pieces of work being highlighted as case studies. 

Wiltshire Pension Fund set a target of net zero by 2050 for all investment portfolios in early 2021, in the Fund's best financial interests.  We have been carrying out work to make this a reality.  There are significant challenges around data availability and consistency.  Our approach is to decarbonise without sacrificing any financial return, by protecting ourselves from risks, by trying to engage with companies which are not prepared for a transition to a low carbon economy in order to drive change, and by seeking out attractive investment opportunities which arise from transition.

 The first case study addresses using tools to prioritise companies where we need to take action. 

A news piece, Wiltshire Pension Fund Net Zero Engagement, on this work was published earlier this year.

The second case study looks at our climate reporting, what metrics we have been able to report against, and how we use them. 

You can read more about this topic in detail in our TCFD (Task Force on Climate-related Financial Disclosures) report, which looks at how we address climate risk as a Fund, through our governance, strategy, risk management, and metrics.

We know this is an important topic for our members, and we hope that our members can take some reassurance from the fact that our work in this area is being highlighted as an example to others.  We can learn a lot from the other inspiring investors in the report as well! 

Where can you find out more? 

• Visit our dedicated climate webpages to read more on our approach to climate risk
• Download the full Paris Aligned Asset Owners initiative (PAAO) Progress Report  PAAO-Progress-Report-November2022_Final (PDF) [12MB] (opens new window)