The London Pensions Fund Authority (LPFA) has allocated 3% of its £8bn portfolio to a new climate fund, marking a significant step in its net zero strategy.
The £250m investment will be managed by Local Pensions Partnership Investments (LPPI) through its newly launched Environmental Opportunities Fund. The multi-asset private markets fund targets a range of environmental investments, including infrastructure, private equity, venture capital and natural capital.
The move is aimed at supporting LPFA’s commitment to reaching net zero emissions by 2050 and aligns with the guidance of the Institutional Investors Group on Climate Change (IIGCC). Under IIGCC’s Net Zero Investment Framework, pension funds are encouraged to set targets for allocating capital to climate solutions such as renewable energy, energy efficiency and reforestation.
“The impact of climate change poses a financial risk to pension funds like ours, so we’re taking climate action to protect our members’ pensions,” said Jo Donnelly, CEO of LPFA.
“We’ve worked very closely with LPPI to get to this point, and I’m delighted to see us taking such a step forward in our net zero commitment" she addded.
LPFA said it had made steady progress on its six net zero goals, first outlined in 2022, and would publish a formal climate solutions target in due course.
Helena Threlfall, portfolio manager of the new fund, said the strategy was designed to tap into a growing set of climate-related investment opportunities across private markets, while supporting broader environmental aims.
Scaling climate solutions: inside LPPI's Climate Opportunities Fund
