Net Zero Pensions

Click below to see all our Net Zero Pensions COP26 photos

Pension Providers and the Path to Net Zero

Policy Positioning Paper

September 2021

Net Zero can broadly be defined as achieving a balance between the Green House Gases (GHG) put into the atmosphere and those which are taken out. The challenge of achieving Net Zero presents a complex range of issues for pension providers and financial institutions alike. With COP26 coming to Glasgow in November 2021, financial institutions are coming under increasing pressure to commit to Net Zero targets. Pension providers must therefore accelerate action towards meeting the goals of the Paris Agreement and the UN Framework Convention on Climate Change.

Download the report (2.2mb)

Transition Roadmap

October 2021

Following on from our Policy Positioning Paper, we were delighted to launch our Transition Roadmap. The Transition Roadmap is designed to provide practical action that pension providers can take to overcome key challenges around reliable data on emissions, knowledge and expertise of pension fund staff and trustees prioritising climate change. It also helps pension providers to navigate the various tools, initiatives and frameworks that can be used on their Net Zero journey. It guides pension providers on how to start taking action now to deliver Net Zero by 2050 or earlier.

Download the report (5.6mb)
Net Zero Pensions

Supporting Local Government Pension Scheme (LGPS) providers to commit to investigating the possibility of taking a net zero approach

With COP26 behind us, asset owners across the globe are coming under increasing pressure to commit to Net Zero. Whilst a number of financial institutions have taken a leap of faith and made Net Zero commitments, others are less comfortable to do so as a prerequisite for achieving Net Zero is the ability to measure the position.

The composition of an investment portfolio will determine the availability of, and access to, the appropriate climate data required to conduct full carbon accounting.

Without knowing the baseline starting position, for many, it is difficult to put a timescale on achieving Net Zero. This presents asset owners with two potential risks:

  • Negative publicity received as a result of not making Net Zero commitments
  • Making a Net Zero commitment that cannot be fulfilled

The Net Zero Pensions workstream delivered a series of policy papers, workshops and events to support LGPS providers to commit to investigating the possibility of taking a Net Zero approach.

Read about Net Zero Pensions at COP26

Video Highlights

Watch the full panel discussion from our Net Zero Pensions Summit at COP26 on Tuesday 9th November at the Adam Smith Business School, University of Glasgow.

The panel was moderated by Louisa Knox, partner at Shepherd & Wedderburn, and included contributions from Faith Ward, Chair of the Institutional Investors Group on Climate Change, Eva Cairns, Head of Climate Change and Sustainability at abrdn , and Tim Orton, Managing Director of Investment Solutions at Aegon.

Discussion points included:

  • Opportunities and challenges
  • Asset classes in scope
  • What is needed to put in practice?
Watch highlights from Net Zero Pensions at COP26

Approaches to Net Zero Banking

What are some of the practical steps their organisations are taking to drive and support the transition to Net Zero?

What is the role that ambitious targets play, and what is the future of the fossil fuel industry in a Net Zero world?

Watch our Ethical Finance 2021 panel highlight to find out more.