The London Pensions Fund Authority (LPFA) has committed £250 million to a new climate-focused investment vehicle, marking a significant milestone in its drive to achieve net-zero emissions by 2050. The investment, representing 3% of LPFA’s £8 billion portfolio, will be managed by Local Pensions Partnership Investments (LPPI) through its newly established Environmental Opportunities Fund.
The fund targets a diverse range of environmental investments, including infrastructure, private equity, and natural capital. It aligns with the guidance of the Institutional Investors Group on Climate Change (IIGCC), which encourages pension funds to invest in climate solutions like renewable energy and energy efficiency.
Jo Donnelly, CEO of LPFA, emphasized the importance of addressing climate risks to protect pensions, stating, “The impact of climate change poses a financial risk to pension funds like ours, so we’re taking climate action to protect our members’ pensions.”
LPFA’s commitment builds on its ongoing efforts towards its six net-zero goals set in 2022, with a formal climate solutions target expected soon.
Source: LPFA.
