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Climate Risk Faith Ward Environment Agency Pension Fund

LAPFF 5 December 2013. Climate Risk Faith Ward Environment Agency Pension Fund. Life before stranded assets. Policy commitments to address climate risk in FSS, SIP and Responsible Investment strategy Founder member of IIGCC Integration of climate change risk into strategic asset allocation.

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Climate Risk Faith Ward Environment Agency Pension Fund

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  1. LAPFF 5 December 2013 Climate RiskFaith WardEnvironment Agency Pension Fund

  2. Life before stranded assets • Policy commitments to address climate risk in FSS, SIP and Responsible Investment strategy • Founder member of IIGCC • Integration of climate change risk into strategic asset allocation • ESG risk built into manger selection & monitoring • Environmental and carbon foot printing of active listed mandates • Allocations to climate sensitive infrastructure, real estate, agricultural land, timberland and sustainable assets.

  3. Where did that get us? Carbon footprint of active equities 26% less than the MSCI AW

  4. Where did that get us? • Carbon footprint of active UK bonds 30% more efficient than the IBOXX • £250 invested clean technology investment • Investments in unlisted real estate and sustainable infrastructure • Research reports with our fund Managers • Supported research and advocacy by IIGCC • Supported other funds in developing strategies Threadneedle Low Carbon Workplace Fund - £15m invested by EAPF

  5. Carbon tracker Being relatively good is not enough !

  6. The Green Light Report Asks of Pension Funds • Policy & training on carbon risk • Evaluate carbon risks in portfolio • Challenge capital allocation of underlying hydrocarbon companies. • Work collaboratively • Look to low carbon alternatives

  7. What next? • Refresh committee members training on carbon risk • Review policy and strategies • Improve communications to members on what we have already done and our plans going forward. • Dig deeper into the funds exposure to fossil fuels

  8. Digging deeper • Evidence base • Lack of robust data to establish risk ACTION NEEDED • Engage collaboratively with the legislature and reporting bodies to improve publicly available fossil fuel reserve data. • Challenge company CAPEX plans and support transition • Constructive dialogue – disinvestment not a progressive solution • Raise awareness and work with others

  9. Questions and AnswersMore information on our websitewww.eapf.org.uk

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