12 leading UK pension funds to support climate transition in emerging markets

A group of 12 leading UK pension funds brought together by the Church of England Pensions Board, representing £400 billion in assets under management and working on behalf of over 18 million members, will jointly consider how to support the transition climate in emerging markets.

British Prime Minister, Boris Johnson. Photo credit: AP Photo/Alberto Pezzali

Recognizing the urgency of supporting climate transition in emerging economies, the 12 funds committed to exploring how greater impact could be achieved through a common understanding of the need, opportunity and mechanisms to provide such investments in these markets.

The intervention was agreed following an investor roundtable hosted by the Church of England Pensions Council with the UK Minister for Pensions as part of the UK Presidency of COP26 of the Conference of United Nations on climate change. Ahead of COP27 in Egypt, the group plans to define the steps it intends to take in line with their respective investment strategies. The Funds have issued the following statement:

As UK pension funds, we:

  • Recognize the important role that asset owners can and should play in helping emerging economies achieve their climate goals.
  • Commit to better understand the needs of emerging economies and the climate transition financing that will be needed by governments and businesses.
  • We commit to working together, in line with our fiduciary responsibility, to reflect on how we can scale up investments for climate transition in emerging economies.
  • Commit to working with the UK COP26 Presidency and other international financial institutions to consider the most practical and effective way to target and increase funding that could be provided by UK pension funds.
  • Recognize the urgency of the transition and commit to working together before COP27 in Egypt, to be able by the COP to present our response.

Clive Mather, Chairman of the Church of England Pensions Council, said: “We are committed to supporting the global climate transition and to playing the part we can, on behalf of our members, in supporting reductions in real issues in emerging markets.

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Courtesy: Climate Action