LPFA participates in COP26 exhibition showcasing London initiatives advancing climate action
London Pensions Fund Authority (LPFA) is participating in a C40 Cities and Arup exhibition at COP26 highlighting some of the world’s best examples of impactful climate action at a city level. The LPFA has been included in London’s section to highlight the £6.9 billion[1] Fund’s progress in tackling the risks of climate change, a commitment underlined by the LPFA Board’s Net Zero commitment in September 2021.
For COP26, C40, the global network of leading cities committed to addressing climate change, and Arup have brought together 11 global cities, from London to Bogotá to Auckland, to offer delegates at the event some of the world’s best examples of impactful city-level climate action. Located in COP26’s Green Zone in Glasgow, the Global Cities Climate Action Exhibition highlight cities’ critical roles in reaching the ambitious targets being discussed by key international bodies and leaders at COP26. The full exhibition will also be available virtually via an interactive digital platform.
According to Robert Branagh, CEO of the LPFA, “We’re delighted to be collaborating with C40 Cities, Arup and so many other London organisations to showcase the climate change work that is taking place across the city. The impact of climate change from water scarcity to flooding to political disruption poses a financial risk to the LPFA and indeed, all pension funds. As a responsible investor, it’s vital we manage that risk and preserve the future financial health of the Fund for our members. We’ve made good progress but have a lot more to do to reach a target-based Net Zero goal by 2050 and an interim target for 2030.”
The LPFA’s investments in traditional energy stands at 1.9% of the Fund’s total portfolio, down from 3.0% in 2018. Investments in companies that directly contribute to a low carbon future stands at 2.6% of the total fund. In addition, the carbon intensity of the Fund’s listed equities portfolio is trending downwards, with an ongoing trend of reduction seen since annual monitoring commenced in December 2018.
According to Arup, cities represent over half the global population, consume over two-thirds of the world’s energy and account for more than 70% of global CO2 emissions. The exhibition will show how city-led climate solutions from the 11 urban areas, which jointly represent over 109 million inhabitants, are measuring tangible positive climate impacts through reduced emissions, improved resource efficiency, and strengthened climate adaptation and mitigation, while enhancing citizens’ quality of life and social equity.
[1] Balance sheet value as at 31 March 2021.