The consultation on the draft Net Zero Climate Strategy (NZCS) will close on midnight 5 February 2023. If you are a scheme member, employer or other stakeholder, please use this opportunity to submit your views.
The consultation acknowledges the pressing pace of action required to manage climate change, and the resultant risks to the Fund. This ensures pensions can be sustainably paid to more than 100,000 beneficiaries in the coming decades.
The Fund previously engaged on key targets and measures in the early development of the NZCS. We received over 1000 responses, which were overwhelmingly supportive of the Fund targeting Net Zero by 2050, with an ambition for sooner. Alongside other proposed primary and secondary targets, such as increasing investments in climate solutions like renewable energy and halving the carbon intensity of our equity portfolio by 2030.
The Fund’s ambition is in line with the goals of the Paris Agreement to drive down real-world carbon reductions. The NZCS aims to address the risk of climate change to the Fund by reducing its carbon emissions whilst maintaining investment returns.
Through engagement with its investment managers and underlying companies, supported by pool company LGPS Central, the Fund will invest in climate solutions that support a global Net Zero future. This is for, and on behalf of members, many of whom live across Leicester, Leicestershire and Rutland.
The Strategy looks to build upon significant progress the Fund has already made as a long-term responsible investor to date:
- As of 31 March 2022 the carbon intensity of the Fund reduced by 26% since its benchmark 31 December 2019 across measurable investment.
- Transitioned £800m+ to sustainable and low carbon investment strategies.
- Invested in timberland (forestry) since 2011. Our investments extend across 12 countries and covers the equivalent of 17%
(363 km2) of Leicestershire’s surface area. This sequesters more than 720,000 tonnes of carbon dioxide from the atmosphere each year*, equivalent to the annual emissions from 233,000 cars, or 62% of reported emissions within the City of Leicester in 2020**.
We’re seeking views on the draft Strategy which are linked below.
Please submit your views to our online consultation.
The closing date is 5 February 2023. The outcome will be presented to the Local Pension Committee on 3 March 2023
For more information or if you require a paper copy of the survey, please contact: Cat Tuohy, Responsible Investment Analyst, Leicestershire County Council.
* Based on above ground stemwood only.
** As reported by BEIS
