Northern LGPS partners with Make My Money Matter
Submitted by Editor on Thu, 22/10/2020 - 10:40
Northern LGPS (NLGPS) has become a Make My Money Matter (MMMM) pledge partner as part of its commitment to sustainable investment.
NLGPS collaboration with MMMM is part of the pool’s ambition to invest 100% of assets in line with the Paris Agreement on climate change, and help members understand the importance of knowing where their pensions are invested.
MMMM shares NGLPS’ view that pension assets can be invested to create a sustainable, better future without compromising on returns. This includes meeting the Paris Agreement to achieve net zero carbon emissions by 2050 and exploring the feasibility of a 2030 target in line with the IPCC’s 1.5-degree pathway.
By raising awareness and engaging members with their pensions, MMMM seeks to align the investment of trillions of pounds in assets with building a better world.
NLGPS partnership with MMMM is part of a much wider environmental, social and governance (ESG) investment strategy, incorporating numerous initiatives which comprise its approach to climate change.
Making a difference
Responsible investment activity undertaken by NLGPS encompasses a number of elements:
- Active shareholder engagement is a critical to NLGPS’s commitment to achieving net zero carbon emissions by 2050. This year alone, NLGPS engaged with companies around the globe to urge them make real commitments to tackling climate change and encourage greater transparency and reporting.
- NLGPS is committed to ensuring a Just Transition to a zero-carbon economy. Representing beneficiaries in the north of the England, we want to ensure that companies properly consider the interests of employees and communities as part of the transition. We support initiatives that create both a greener and financially viable future.
- As co-founder of GLIL Infrastructure alongside the London Pensions Funds Authority, NLGPS has created a unique asset owner-led infrastructure vehicle that ensures that costs are kept low. GLIL is aligned with NLGPS’ responsible investment objectives and is an investor in green energy projects that benefit the UK economy. GLIL owns a majority position in the Clyde Wind farm – one of the largest onshore facilities in Europe – and in December bought a 49% stake in Cubico Sustainable Investments which will develop renewable energy sources in the UK.
- NLGPS is an active supporter of the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). Understanding the impact of NLGPS investment decisions on climate change is critical in meeting our twin objectives of creating a greener future while delivering value to members.
NLGPS Chair Cllr Ged Cooney said: “Collaboration is critical in driving positive change. NLGPS’ partnership with Make My Money Matter confirms our commitment to sustainable investment. We are confident through our work with other likeminded investors and organisations, that a just transition to a zero-carbon economy is completely achievable."
Richard Curtis, co-founder, Make My Money Matter said: “It’s exciting to see the Northern LGPS, one of Britain’s largest public pension funds working to tackle the climate emergency, commit to partnering with Make My Money Matter to push this vital agenda forward. Combined with Nest, Aviva, BT and South Yorkshire, that’s £152bn saving to create a future we all want to retire into. We’re facing an existential challenge – it’s time for all UK pension funds to make money matter and commit to halving their emissions by 2030 and going Net Zero by 2050.”
