A UK Local Government Pension Scheme (LGPS) pool has reported that more than 90% of its assets are now covered by Paris-aligned climate targets, with significant progress being made in its private markets portfolios.
Brunel Pension Partnership, which manages £35bn on behalf of 10 LGPS funds, stated in its latest Responsible Investment and Stewardship Outcomes report that 92% of its assets are aligned with Paris Agreement objectives. In addition, 32% of Brunel’s assets are invested in the UK.
The report, published today (27 May), highlighted notable progress in Brunel’s private debt portfolio. It found that 90% of managers overseeing the Cycle 3 and Cycle 4 portfolios have committed to reporting on carbon emissions.
Alongside this, in its infrastructure portfolio, accounting for 4% of total assets, Brunel revealed that 80% is invested in assets contributing directly to sustainable outcomes.
Meanwhile, on the listed equity side, 77% of passive and sustainability-labelled bond and equity index-tracking funds are aligned with Paris benchmarks.
The publication of Brunel's responsible investment report comes as recent months have seen significant upheaval in LGPS pooling. Brunel alongside ACCESS were instructed by the government in April not to proceed with their transition plans, effectively requiring them to merge with another pool.
These pools now have until June to report back to the Ministry of Housing Communities and Local Government and the Treasury. A further meeting is scheduled for September, by which time funds must submit an in-principle decision on which pool they intend to join.
Stewardship efforts
Brunel's report also detailed its stewardship efforts, stating it had engaged with 829 companies in 2025, up from 805 the previous year.
The report follows Brunel’s role as one of three LGPS investors backing a shareholder resolution at oil and gas supermajor Shell’s annual general meeting last week. The resolution focused on the oil and gas giant’s liquefied natural gas (LNG) expansion, which secured support from more than 20% of shareholders, obliging Shell to address the concerns raised.
The report includes Brunel’s ongoing engagement with Shell, noting that discussions are continuing on the company's assumptions about LNG demand growth, its alignment with net-zero targets, and the resilience of its LNG portfolio amid the rise of renewables and expected downward pressure on prices.
Laura Chappell, chief executive of Brunel, said: “Here is the proof that our partnership is showing leadership in these areas and achieving tangible results. As always, our hopes and ambitions extend beyond just Brunel, and we publish this in the hope and expectation that others will follow the same trail.”
