Council’s pension fund: carbon neutral pledge


Town Hall photo for media releases


Town Hall photo for media releases


Hackney Council’s pension fund has pledged to achieve carbon neutrality by 2040, with interim targets set in the meantime, as part of its new greener ambitions.

The fund has already reduced its investments in fossil fuel reserves by nearly 97% as part of its commitment, made six years ago, to move away from investments in carbon-related firms. 

The near-100% decarbonisation of investments is a significant outperformance of its commitments to reduce exposure by 50% between 2016 and 2021 – the first council in the country to make such a commitment. 

One of the ways the fund has done this is by moving away from carbon-intense stocks – heavily reliant on oil, gas and mining investments – and instead investing more in greener, global funds.  

The fund has also expanded its responsible investment strategy which aims to see it carbon neutral within 20 years, and to align with global ambitions to limit worldwide warming.

To achieve its goal, the fund will work with its investment managers and investee companies to demonstrate plans or commitments to decarbonise. It will also look to place new investments into companies and businesses that have a greener agenda and can drive the move to net zero. 

The new strategy aims to harness the power of collaborative investment policy to drive change in how companies operate, incentivising them to be greener. 

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

 

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