UK pension pool LGPS Central has partnered with carbon emissions reduction specialist C2Zero to adopt an innovative approach to managing and reducing operational emissions.
Moving beyond the traditional reliance on carbon offsets, which fund projects to remove or reduce emissions elsewhere, LGPS Central has adopted C2Zero’s Carbon Cancellation Service as part of its net zero strategy for operational emissions. “This progressive solution reduces the future emissions permitted from the UK’s largest polluters,” LGPS stated.
Patrick O’Hara, head of responsible investment and stewardship at LGPS Central, said: “When it comes to addressing our residual emissions from our business operations, we are keen to support innovation that allows companies to access emissions allowances from government-regulated compliance carbon markets. C2Zero’s solution provides access to carbon emissions allowances from the UK Emission Trading Scheme. In addition to access, the ability to remove the purchased allowances from circulation was also attractive. Partnering with C2Zero has provided us with a solution that meets these aims and is both measurable and transparent.”
C2Zero has operated in Australia since 2021 and launched its UK Carbon Cancellation Service (C4S) in London in March 2024 as part of the Connect to Prosper initiative of the former Lord Mayor of London, Alderman Professor Michael Mainelli.
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Commenting on the partnership, Alderman Mainelli said: “LGPS Central’s adoption of initiatives like C4S demonstrates forward-thinking leadership and a tangible commitment to combating climate change. Their collaboration with innovative companies like C2Zero sets a powerful example for others to follow.”
Roger Cohen, founder and CEO of C2Zero, added: “At C2Zero, our mission is to empower organisations like LGPS Central to take impactful steps towards reducing emissions. This partnership showcases how innovative solutions and forward-thinking organisations can drive real progress in the fight against climate change.
This collaboration marks the beginning of our journey into the UK and beyond. Working with organisations like LGPS Central, alongside the support of Alderman Mainelli and the City of London, gives us every confidence that we can make a significant difference as we grow. We are grateful to LGPS Central for recognising the potential of the solution we offer.”
About this initiative, Prof. Andreas Hoepner, professor of operational risk, banking and finance at University College Dublin, head of data science hub and member of the EU Platform on Sustainable Finance said: “I am encouraged by the innovative and robust approach taken by LGPS Central in addressing its operational emissions. It is important for asset owners and asset managers to address their own operational emissions and I hope other enterprises follow this example.”
