Now:pensions, a UK workplace pension provider, says that 76% of total holdings now aligned with responsible investment goals after a programme to accelerate its climate action.
The firm introduced a new investment strategy in early 2024 and the assets are held in a diversified growth fund.
Now:pensions aims to achieve net-zero greenhouse gas emissions by 2050, with an interim target of a 50% reduction by 2030, based on 2019 levels.
A key feature of the new strategy is the management of global equity investments by the in-house investment manager, Cardano Risk Management. This allows a more direct engagement with its company holdings, supporting their transition to net-zero or disinvesting if no credible plan is in place, said the firm.
The initiative has already made an impact, with the level of equity investments that have targets approved by the Science-Based Targets initiative (SBTi) increasing to 43%.
Additionally, now has reduced its carbon footprint for scope 1 and 2 emissions from 63.1 tons of greenhouse gas per million pounds invested in 2023 to 52.0 tons in 2024.
Martyn James, director of investment at now, said: “This new investment strategy is strongly aligned with our commitment to sustainability. The increase in SBTi-backed investments and the significant reduction in carbon emissions per million invested are key milestones towards our 2030 and 2050 targets.”
Keith Guthrie, head of sustainability, added: “By managing our equity strategy in-house, we can actively engage with companies to ensure they develop credible net-zero plans. This strategy supports both financial outcomes and the transition to a more sustainable economy.”
