AUM in Action

UK’s LPFA Cuts Emissions Intensity by 75%

Local government pension scheme (LGPS) the London Pensions Fund Authority (LPFA) has published an updated report detailing its progress on net zero since the 2022 launch of its investor climate action plan. According to the report, the LPFA has already reduced its emissions intensity by 75% compared its 2019 baseline, six years ahead of its 2030 fixed target. The fund had also aimed to maintain an implied temperature rise consistent with the Paris Agreement, and is currently 0.3°C ahead of its target. In addition, it is on track to meet its target of having at least 32% of material sector investments aligned with net zero by 2025. “We started our journey with targets for our Listed Equity investments and we’ve made good progress in that area,” said Paul Hewitt, Responsible Investment Manager at the LPFA. “Over 54% of our portfolio is now under net zero targets and monitoring. While we have made good progress, we know that this is just one point in time and much more difficult stages remain ahead.” LPFA, which has £7.7 billion (US$9.8 billion) in assets under management, recently launched a new responsible investment policy to ensure that environmental, social and governance considerations were embedded in investment decision-making and stewardship.

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