Smart Pension has committed to developing its investment approach to reach net-zero carbon emissions “well ahead” of the 2050 deadline.
The master trust has signed up to Make My Money Matter, which has been campaigning for pension funds to commit to net-zero, promising “action now to make the required changes", and pledges to "halve its scheme emissions significantly earlier than the 2030 deadline to align with the Paris climate agreement”, a statement read.
During the first quarter of 2021, Smart Pension will also allocate funds to a new Social Impact Fund, which aims to capture investment opportunities that offer solutions to broader environmental and social challenges such as healthcare solutions for ageing populations, social housing, technologies to improve the use of water and gender equality in employment, the master trust stated.
According to Paul Bucksey, managing director of the Smart Pension Master Trust, climate change “is one of the most important issues facing each and every one of us.
“But achieving great risk-adjusted returns for members while investing for long-term environmental and societal benefits aren’t mutually exclusive objectives, and it is important that trustees and scheme sponsors grasp the opportunity that this offers.”
Mr Bucksey said the master trust’s team was excited about the "difference our scheme can make over the short and medium term", and was already working with its partners to develop funds that "decarbonise the economy rather than offsetting in other ways — which does not address the real problem”.
Richard Curtis, co-founder of Make My Money Matter, said the master trust’s announcement “sets a glowing example for the pensions industry.
“Smart Pension joins a growing list of organisations stepping up to ensure their pensions are fighting, not causing climate change, and we urge all schemes to follow suit ahead of the international climate change conference this November,” he said.
maria.espadinha@ft.com
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