The Tyne and Wear Pension Fund has hit its ambitious interim carbon-cutting targets two years ahead of schedule.
The £12.5 billion Fund committed to be Net Zero carbon by 2050 or sooner in its Climate Change Policy adopted in 2021.
The Policy and Roadmap also set out interim targets to reduce carbon emissions* across the whole investment portfolio by 30%-35% by 2025 and 50%-60% by 2030.
The 2023 carbon footprint shows that emissions have reduced by almost 40% cent from the 2019 baseline, surpassing the 2025 target two years early.
Councillor Anne Walsh, Chair of the Pensions Committee, said “We are delighted with the progress made so far to reduce carbon emissions in the investment portfolio, which demonstrates our commitment to implementing a lower carbon approach and supporting the transition to renewable energy.
“However, we recognise there is still much to be done and we will continue to actively engage with investment managers and companies to improve climate outcomes and consider climate risks in our investment decisions.
“It’s essential that investment decisions are made in a financially sustainable, balanced manner, to keep the costs of the scheme at an affordable level. This helps the Fund’s employers in providing vital front line public services and also helps protect members’ benefits.”
The Fund has also recently been confirmed as a signatory to the Financial Reporting Council’s Stewardship Code. The Code is considered to be a high level of certification of an investor acting in a responsible and sustainable manner.
The 2023 carbon footprint will be published by the Fund in its forthcoming TCFD (Task Force on Climate-Related Financial Disclosures) Report.
*based on the Funds primary climate metric of WACI (Weighted Average Carbon Intensity)