Two councils target net zero, East Sussex buys sustainable equities

Lambeth Pension Fund targets net zero by 2040

The £1.9bn London Borough of Lambeth Pension Fund’s committee voted unanimously to implement a 2040 net zero target at a meeting earlier this week. The council said that the fund’s commitment fell in line with its declaration of a climate emergency in 2019, and a further pledge to achieve net zero emissions by 2030 across the emissions the council directly controls — those generated by its buildings and operations. It added that the fund’s 2040 goal represented a move to tackle emissions that sat outside of the fund’s direct control. The committee will also set interim targets up to 2030 in a bid to decarbonise, which it hopes will help it monitor its performance against the longer-term goal. These targets will be agreed and announced soon.

Shropshire Pension Fund aims for net zero by 2050

The £2.2bn Shropshire County Council Pension Fund has committed to a target of achieving net zero emissions by 2050 or sooner. It has also agreed to transition part of its equity assets to sustainable funds in order to cut its carbon emissions. Aon and independent Roger Bartley advise. At a January pensions committee meeting, the scheme agreed to commit approximately £130m to the LGPS Central pool’s Sustainable Equity Fund, split across two undisclosed managers. “These managers will invest in companies that enable the green transition alongside other companies that contribute to one or more of the UN’s Sustainable Development Goals,” Shropshire Pension Fund’s chair councillor Thomas Biggins explained. In addition, the scheme has agreed to transition its circa £700m passive equity allocation with Legal & General Investment Management, held in the FTSE All World Fund, to a low-carbon alternative, the Solactive L&G Low Carbon Transition Global Index fund. 

This article originally appeared on MandateWire.com

East Sussex Pension Fund invests in sustainable global equity portfolio

The £3.9bn East Sussex County Council Pension Fund has invested £200m with Osmosis Investment Management in a new passive global equity, ex-fossil fuels portfolio. This mandate forms part of the scheme’s ongoing commitment to address the investment challenges presented to its passive holdings by the energy transition. Councillor Gerard Fox, chair of the East Sussex Pension Committee, said: “We are excited to be the first LGPS fund investing in this product, and it is a great addition to a number of changes already in place as part of the fund’s climate response implemented as a result of its statement of responsible investment principles.” Fox explained that while keeping fees low for members by retaining passive equities, and with the exposure to carbon, water and waste all being reduced, the committee felt this investment met a number of key objectives for the fund. Osmosis Investment Management advises the passive equity strategy, while incumbent passive equity manager UBS Asset Management acts as investment manager. Isio supported the development of an investment strategy aligned with the fund’s objectives. 

This article originally appeared on MandateWire.com