Railpen, which manages £34bn in assets, has cut portfolio emissions by 41% and invested nearly £1bn in UK climate solutions, according to its updated net zero plan for 2025.
The plan, published on 2 October, reaffirmed the pension fund’s commitment to managing its investment portfolio in line with achieving net zero emissions by 2050.
Following the development of asset class alignment plans for listed equities, corporate fixed income, and sovereign bond portfolios, the plan stated that 23% of Railpen’s assets are currently aligned to net zero. Overall, the fund is targeting 100% alignment in material sectors by 2040.
Alongside this, Railpen said its portfolio emissions were 41% lower in 2024, surpassing its interim goal of a 25–30% reduction by 2025, with the organisation remains on track to deliver a 50% cut by 2030.
On climate solutions, the report highlighted Railpen’s £900m of investments in UK infrastructure, including a 50% stake in AGR Power, a London-based renewable energy developer.
Within public market assets, the report outlined Railpen’s stewardship approach as at least 70% of holdings are currently either aligned to net zero or under engagement, with a target of 90% by 2030.
Adam Gillett, head of sustainable investment and co-head of sustainable ownership at Railpen, said: “While we are on track to meet our interim targets in 2025 and 2030, this is only an early assessment of what is a much longer-term plan. Critically, however, systemic climate risk has continued to rise significantly since publishing our first net zero plan, and global emissions also continue to rise. Looking ahead, we are deepening our focus on achieving real-world emissions reduction, and on how Railpen can best play its role in driving this change.”
