AUM in Action

People’s Pension Shifts £15bn to Climate

UK pension scheme The People’s Pension has moved £15 billion (US$19 billion) of its assets under management into climate-aware investment strategies. The asset redistribution means 70% of the scheme’s £25 billion main investment fund will be aligned with the Paris Agreement and should reduce the carbon footprint of the majority of its 6.5 million members’ investments by 30%. The new investment approach has been tailored to adjust the level of investment in companies based upon their climate risks and opportunities exposure, and track regional indices which aim to exceed the minimum standards of the European Union’s Climate Transition Benchmark. This means emissions should drop by 30% initially, and then by a further 7% each year, wth goals to eventually align with the target of net zero by 2050. “Asset owners like us are uniquely positioned to use our size and influence to ensure our members’ savings are allocated and managed responsibly, and that the companies in which we invest are acting in responsible and sustainable ways,” said Dan Mikulskis, CIO at the People’s Partnership, provider of The People’s Pension.

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