Kent Pension Fund has adopted a net zero target by 2050 and committed to allocate 15% of its portfolio to sustainable investment assets by 2030.
At its latest committee meeting, the £7.8bn Local Government Pension Scheme (LGPS) fund outlined a policy package to address climate risk, including a target to reach net zero carbon emissions by 2050 and interim emission reduction goals.
Commenting on the initiative, chairman of the Kent Pension Fund Committee, Charlie Simkins, said: “Climate risk is paramount for long term investors like the Kent Pension Fund. In setting a formal net zero target and related measures, we are facing the challenge head on."
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According to the package, Kent Pension Fund will target a 43% reduction in emissions arising from its equity investments by 2030, and a 69% reduction by 2040.
In addition, the fund will target a 15% allocation to sustainable investment assets by 2030. This is in recognition that a reduction of the fund's portfolio emissions must result from real-world decarbonisation, the pension fund explained.
The net zero package is aligned with limiting global temperature increases to 1.5°C, as assessed by the Intergovernmental Panel on Climate Change.
Kent Pension Fund is part of the LGPS pool ACCESS, which has assets of around £35bn and recently launched two global timberland mandates.
