UK-based independent master trust The People’s Pension has more than halved the carbon emissions of its main investment fund over the last 12 months. Its latest Task Force on Climate-related Financial Disclosures (TCFD) report noted that the scheme’s emissions have fallen by 53% – or 400,000 tonnes of CO2 equivalent – while its assets have increased by £8 billion (US$10.3 billion).This follows an announcement by The People’s Pension earlier this year that it was moving £15 billion of its assets under management into climate-aware investment strategies. This allocation has since risen to £18 billion. “This report tells a compelling story about how we use our size and influence to ensure our members’ savings are allocated and managed responsibly and reinforces our commitment to tackling climate change through investing,” said Mark Condron, Chair of The People’s Pension Trustee. Three sectors are responsible for over 70% of the fund’s remaining emissions: materials, utilities and industrials. However, through engagement efforts, between 40-60% of investees within these sectors have now set science-based targets to reduce their emissions, the firm said. “With great size [£30 billion in AUM] comes greater responsibility,” said Dan Mikulskis, the firm’s Chief Investment Officer. “We are committed to doing what we can to make sure the companies we invest in follow certain standards, particularly in material sectors and in our priority areas of climate, nature and human rights. The TCFD report has become a useful reporting vehicle across a range of climate and responsible investment areas.”
