The West Midlands Pension Fund (WMPF) issued a climate change position statement in September, ahead of October’s COP26 conference in Glasgow, hosted by the UK government.
It outlines WMPF’s approach to climate change, how it identifies risks associated with it and how it intends to mitigate the impact on its investments.
WMPF aims to invest in opportunities where positive environmental and social outcomes are expected to correlate with positive financial performance.
The statement says that over the past two years, WMPF has transitioned £2 billion of equity holdings to sustainable and low carbon investment strategies while reducing its carbon footprint by 30%.
Over the same period, it has increased investment in clean technology by 17% and reduced its exposure to fossil fuel reserves by almost 40%.
Addressing climate change will become an increasingly prominent theme across WMPF portfolios and it anticipates the Climate Change Framework will evolve as climate related financial tools and data availability improve.
WMPF intends to exploit more and better investment opportunities as governments adjust focusing their spending on climate friendly policies. It states that all companies, industries, governments and policy makers, capital markets, asset owners and individuals must act together and with a common goal.