Investments: Climate change

When setting its first Climate Change Policy the Fund considered the Net Zero Investment Framework established by the Institutional Investor Group on Climate Change (IIGCC). The Fund supported the Asset Owners Commitment included in the Framework to achieve net zero greenhouse gas emissions (GHG) by 2050 or sooner which was incorporated into the Fund's own Climate Change Policy.

As part of this Framework, organisations are asked to commit to transitioning investments to achieve a Net Zero Carbon Fund by 2050, or sooner. Once this commitment is made, organisations are required to develop a Climate Action Plan or Roadmap setting out a range of objectives and interim targets, within one year of making the commitment in order to deliver against it.

In line with the IIGCC framework and as included in the 2022/23 Service Plan actions the Fund has now produced a net zero roadmap.

The Roadmap sets out the actions the Fund will undertake in the short, medium and long term to achieve its Net Zero or sooner target.

The actions identified in the Roadmap cover the work needed to meet the commitments made by the Fund in the Climate Change Policy. These cover the measurement of climate risk and working with the Fund's investment managers to improve data quality and strengthen engagement on climate-related issues.

There are also a number of actions in relation to the work the Fund is doing around the Investment Strategy and reviewing existing mandates as well as seeking new investment in climate change solutions.