BT sets 5-year carbon goal, Islington updates net zero targets

BT scheme publishes 5-year decarbonisation targets

The BT Pension Scheme has announced that it has set five-year decarbonisation goals in a bid to achieve its 2035 net zero goal. The scheme committed to reduce the scope 1 and 2 carbon intensity of its equity and credit portfolios by at least 25 per cent and its real estate portfolio by at least 33 per cent by 2025 as part of its five-year targets, in order to achieve the net zero goal it set in October 2020. The targets are consistent with the Net-Zero Asset Owner Alliance and the Institutional Investors Group on Climate Change net zero frameworks. BTPS is targeting higher reductions in the utilities, oil and gas, transport and steel sectors. It said that it will seek to achieve its targets through a combination of portfolio construction, fund manager mandates, engagement and advocacy.

This article originally appeared on MandateWire.com

Islington updates net zero goals

The London Borough of Islington Pension Fund is updating its responsible investment policy to reflect its new net zero targets. The fund has also said that it aims to increase its allocation to green assets. It last set decarbonisation targets in 2016, and approved new targets for 2022-30 in September 2021, according to minutes from a pensions subcommittee meeting. The fund aims to have a carbon-neutral portfolio by 2050. The committee approved new short and medium-term targets, aiming to cut its 2021 baseline emissions by 15 per cent during the 2022-26 period, and by 26 per cent during 2022-30. The fund aims to extend these targets to cover all listed assets, including debt and equity. Additionally, its committee agreed to increase the allocation to green assets to 20 per cent, “to allow four years to align with the new target”. During a November 2021 meeting, the pensions subcommittee discussed the implementation plan for new indices in passive equities for the next stage of the fund’s decarbonisation plan. The scheme’s adviser, Mercer, recommended that a new provider should be encouraged to obtain cover in emerging markets as soon as possible in order to best align with the fund’s net zero targets. 

This article originally appeared on MandateWire.com

Overseas policy sees FCA delay next step on ESG labels

The FCA has delayed the implementation of sustainable investment labels to allow it to take account of other international policy initiatives. In an update on July 4, the regulator said it had aimed to consult on the sustainability disclosure requirements in the second quarter of the year, but will now undertake the exercise this autumn. It said this will “allow us to take account of other international policy initiatives and ensure stakeholders have time to consider these issues”. Last month, the Securities and Exchange Commission proposed a new set of rules on climate-related disclosures, to be phased in from 2023. If adopted, these will require funds and advisers to provide more specific ESG disclosures in fund prospectuses, annual reports, and adviser brochures. Funds with a “consideration of environmental factors” would need to disclose the greenhouse gas emissions associated with the investments in their portfolios, and those claiming to have a specific ESG impact would need to outline that impact and summarise their progress towards their goals. 

This article originally appeared on FTAdviser.com