Pension Fund Chair Net Zero Statement of Support

The statement

This decade is critical. The Intergovernmental Panel on Climate Change (IPCC) has warned of severe consequences of a failure to prevent global warming exceeding 1.5°C. To limit the increase in global average temperatures to 1.5°C above pre-industrial levels, global emissions need to halve by 2030, and drop to net zero by the middle of the century, becoming net negative thereafter. The IPCC has also made it clear that, even if we limit the rise to 1.5°C, significant physical impacts from climate change are already inevitable, many of which will exacerbate catastrophic declines in natural capital and biodiversity, as well as impacting people’s lives and livelihoods.

As chairs of pension and other retirement schemes, we recognize the scale of the transition needed and the challenges climate presents for governments, business and civil society. In our positions, we recognize that our ability to uphold our fiduciary duty in providing long-term, risk-adjusted returns to our members is threatened by the impact of climate change both now and in the future. Our responsibilities include driving capital towards positive outcomes, being a catalyst for innovation and opportunity, helping to finance the transition to a net zero global economy, investing in resilience to protect against physical risks and restore nature, and leveraging our influence across the investment chain.

Several pension and retirement schemes have already made ambitious greenhouse gas emissions reduction commitments. These include commitments to achieve net zero emissions across the scheme’s portfolio by a certain year or reductions in line with the Science Based Targets initiative. As a group of pension and retirement scheme chairs, we commit to build on this, and to work collectively to share our experiences and practices with others. We intend to demonstrate this by doing the following within the 12 months of signing this Statement of Support:

• Committing to set net zero targets to align our investment portfolios with a 1.5°C pathway
• Ensuring our direct service providers to support this ambition
• Being an active shareholder across all relevant asset classes we invest in
• Collaborating with our peers to innovate ways to bring influence to bear in the interest of our members
• Attempting to understand climate risk in a holistic manner and to manage these risk factors within our investment portfolios, including physical and transition risks

Through our individual and collective actions, we aim to provide useful examples to other pension and retirement schemes grappling with similar issues.

We are proud to support a smooth transition to a net zero emissions economy and to invest in resilience. We urge other pension and retirement scheme chairs to join us. In signing this statement, we are formalizing our increased ambition and signaling our commitment to a net zero emissions, resilient future.
 

The Signatories

• Magnus Billing, Chief Executive Officer, Alecta Pensionförsäkring
• Otto Thoresen, Chair, British Telecom (BT) Pension Scheme
• Russell Picot, Chair, HSBC Bank Pension Trust (UK) Limited
• Peter Goshawk, Chair, Barclays UK Retirement Fund
• Denise Le Gal, Chair, Brunel Pension Partnership, LGPS pool
• The Honourable Nicola Roxon, Chair, Health Employees Superannuation Trust Australia (HESTA)
• Mike Craston, Chair, London LGPS CIV Limited, LGPS Pool
• Ruston Smith, Chairman, Tesco PLC Pension Scheme
• Catherine Claydon, Chair of Trustees, BBC Pension Trust
• Chris Hitchen, Chair of the Investment Committee, National Employment Savings Trust (Nest)
• John Timbrell, Trustee & Chairman of Investment Committee, Transport for London (TfL) Pension Fund
• Councilor John Mounsey, Chair, South Yorkshire Pensions Authority, South Yorkshire Pension Fund
• Tony Ashford, Chair, Unilever UK Pension Fund
• Robert Gould, Chair, Pensions Committee, Environment Agency Pension Fund
• Clive Mather, Chairman, Church of England Pensions Board
• Rory Murphy, Chair of MNOPF Board of Trustees, Merchant Navy Officers Pension Fund
• Chris Martin, Executive Chairman of ITS (acting as Professional Corporate Sole Trustee), Atos UK 2019 Pensions Scheme
• Ken Woodier, Chairman, Pennon Group Pension Scheme
• Andrew Warwick-Thompson, Chair of the Board of Trustees, Scottish Widows Master Trust