London CIV has aligned with the Paris Agreement objectives to limit global temperature rise below 1.5°C by committing to becoming net zero by 2040.
It has also committed to becoming net zero across operational and supply chain emissions as early as 2025.
In addition, LCIV has set interim targets for its investments that include a 35% carbon intensity reduction by 2025 (relative to 2020), and 60% by 2030 across funds invested via the London CIV Fund range worth £12.9 billion in total.
Targeted engagement in order to avoid emissions, and launching new net zero funds that will in time contribute to negative emissions are to be used to decarbonise the portfolio.
Next year, the impact of the passive funds included in the LCIV pool worth £13 billion will be calculated in order to plot a pathway towards achieving net zero by the deadline set.
“Over the next few decades, one billion lives and trillions of pounds will be at risk due to a single issue: climate change,” said Jacqueline Jackson, head of responsible investment at LCIV.
“We hope by setting an ambitious target we will send a clear signal to our clients, managers and investee companies about our commitment to addressing this increasingly material issue with the urgency required.”
“Our net zero strategy demonstrates our commitment to ensuring that the range of funds we offer are suitable for our clients’ varying climate goals. We want to ensure that in collaboration with all of our partners we can help client funds achieve their emissions reduction targets, however ambitious they may be.”