The London Pension Fund Authority (LPFA), which has £7.7 billion of assets under management, said it would increase monitoring and engagement activity around specific social, governance and environmental issues in its portfolio.
The plans were laid out in a new responsible investment policy announced this week.
The policy identifies four pillars of importance to the LPFA: climate change, natural capital, the “Just Transition” and good governance.
Within those areas there several global themes identified as posing the greatest risks and opportunities to the fund. These include renewable energy and fair pay.
CEO of the LPFA, Robert Branagh, said: “Being a responsible investor is all about managing the risks and opportunities facing our Fund so that we can continue to pay our members their pensions when they retire. Our new RI policy formally identifies the main environmental, social and governance risks – and investment opportunities – that we face today and what might emerge in the future. A robust approach to RI is good, effective risk management and part of being a well-run Fund.”
Paul Hewitt, responsible investment manager, added: “The LPFA and our investment managers were already doing great work in RI and particularly around climate change where we have had a policy in place since 2016. This new policy, though, gives us greater clarity and direction on what sustainability issues are most important to us and when and how we affect positive change together.”
