UK pension funds pledge to collaborate on emerging markets’ climate transition

A dozen UK pension funds with collective assets of £400bn ($493bn) are joining forces to support the climate transition in emerging markets, according to a press release from a climate change summit on Thursday. net zero deliveries in London.

Led by the Church of England Pensions Council, which oversees £3.7bn in assets, the pension funds include the £83bn Universities Pension Scheme, Border Pensions Partnership to Coast £55bn, Brunel Pension Partnership £35bn, BT Pension £57bn. Scheme, £57bn Northern LGPS, £37bn RPMI Railpen and £24bn National Employment Savings Trust.

The pension funds said in a joint statement that they are committed to finding ways to increase investments that support climate transition in emerging economies and to collaborate for greater impact.

They also pledged to work with international financial institutions “to explore the most practical and effective means of targeting and increasing the funding” that pension funds could provide, through individual or joint commitments. . The pension funds “recognize the urgency of the transition and are committed to working together”, according to their press release.

Other contributors are the £18bn Legal and General Mastertrust, the £30bn Legal & General Workplace Pension Plan and Stakeholder Pension Plan, the £18bn West Yorkshire Pension Fund and the Environment Agency £4.8 billion Pension Fund.

The net zero summit was organized by the City of London Corp. and the UK Presidency of COP26 in 2022 to address progress made so far on the financial priorities set at COP26 in Glasgow and to prepare for the UN Climate Change Conference, COP27, to be held in Sharm el -Sheikh, in Egypt, in November.

Clive Mather, chairman of the Church of England pensions board, said in the statement that “the required level of investment in emerging markets will only be achieved if we can increase ambition and work with others investors”.

Environment Agency pension fund chair Emma Howard Boyd said in the statement that “we have yet to see any significant changes in the market. Meanwhile, countries are frustrated that the $100 billion in climate finance pledged by industrialized countries in 2009 has not been delivered.”