Council’s pension fund sets ambitious new targets on responsible investments

Hackney Town Hall up shot

Hackney Town Hall up shot

Hackney Council’s pension fund has reduced its exposure to fossil fuel reserves by nearly 97% as part of its commitment, made six years ago, to cut its exposure to  carbon-related assets. 

The near-100% decarbonisation of investments – in areas such as coal reserves and oil companies – is a significant outperformance of its commitment to reduce exposure to carbon by 50% between 2016 and 2022 – the first council in the country to make such a pledge. 

One of the ways the fund has done this is by moving away from UK investment mandates stocks – a traditionally carbon-intense economy reliant on oil, gas and mining investments – and instead investing more in global mandates, with a greener, more sustainable view.

Now the fund has expanded its responsible investment strategy to review further decarbonisation of its investments, following a meeting of the Council’s Pension Committee last night.

Its new ambition is to become carbon neutral by 2040 and to align with global ambitions to limit worldwide warming. 

This means the fund will look to place new investments into mandates where companies and businesses have a green agenda and can demonstrate plans or commitments to decarbonise, such as reduction of emissions. 

The new strategy aims to harness the power of the fund’s collaborative investment clout to drive cleaner behaviours in companies and incentivise them to work greener. 

Three key principles will be applied when considering future investment in companies: climate action; clean energy systems; and human rights. 

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