Climate change presents a particular systemic risk to the financial stability of the global economy, and has the potential to impact on investments, members and employers. It could negatively impact on the Fund's financial performance, and as such it represents a long term financial risk to the Fund and its holdings.
The Investment Strategy Statement and the corporate governance and responsible investment policy make particular reference to climate change, reflecting its growing importance.
Recognising the issues climate change present, the Fund has taken advantage of opportunities to diversify into renewable energy and green technology. Investments include:
- EnfraGen aims to provide 1.4GW of back-up power and grid stability through thermal, hydro and solar energy sources in Latin America.
- The Grassroots Renewable Energy Platform will provide 1.3GW of wind power, solar power and battery storage in Australia, enough for over 500,000 homes. The on shore wind farms will save over 1,000,000 tonnes of carbon emissions each year.
- Bioenergy Infrastructure Group is an energy-from-waste company operating across seven sites in the UK. Every year, these sites will divert over 1,000,000 tonnes from landfill and will produce enough energy for 250,000 homes.
- Eteck uses geothermal and solar technology to provide sustainable collective heating and cooling in the Netherlands, as an alternative to gas. The company works with property developers to construct homes with an EPC (energy performance certificate) rating of zero.
View the Pension Fund's climate change policy Plans and Policies - Climate Change Policy.