Posted inNORDICS

Pension funds make climate commitment

UK and Nordic pension funds have committed $130bn to clean energy and climate investments at COP26, reports our sister publication ESG Clarity from Glasgow.

Asset owners in Sweden, Norway, Finland, Denmark, Iceland, the Faroe Islands and the UK announced the commitment on the third day of the conference, saying the investments will be made by 2030 and reported on annually.

“These pledges signal to policymakers, project developers and corporates that investors are seeking additional investable opportunities,” said Stephanie Pfeifer, chief executive of the Institutional Investors Group on Climate Change.

The funds include the UK’s Nest, the Icelandic Pension Funds Association, ATP in Denmark and Lív Pension Fund in the Faroe Islands, and follow commitments made in 2019 by members of Insurance & Pension Denmark.

Denmark said $75bn of the funds were new commitments.

The investments will be made in listed and unlisted equity, green energy infrastructure, green bonds and debt, property and other investments.

Holly McElhone, a campaigner at pension not-for-profit Make My Money Matter, said: “COP26 promised to host the most imporyant climate talks of our lifetime and put finance at the top of the agenda. On pensions, we’ve gotten off to a good start.”

She added: “While these announcements have set the tone, we need to see more providers followin the footsteps of Nest, EAPF and the Nordic schemes by pledging to investbillions more into climate solutions and green technology.

“We also need the government to use this unparalleled platform to make net zero mandatory for all pension schemes; ensuring the UK leads the world on green pensions, and ensure our money is helping create a world worth retiring into.”

For more content on environmental, social and governance investing – and live coverage of Cop26 in Glasgow – visit ESG Clarity.

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