UK-based pension scheme now:pensions’ new climate investment strategy has put the master trust on track to achieve net zero by 2050 and halve emissions by 2030 based on 2019 levels. As part of the strategy update, now:pensions’ global equity investments are now managed directly by in-house by Cardano Risk Management. Now:pensions is planning to undertake direct engagements with portfolio holdings and divest from those with no credible transition plan. Sixty percent of the master trust’s Diversified Growth fund is now invested in an equity strategy that seeks to support the climate transition, while 11% are held in sustainable and green bonds and 4% in a corporate credit transition-aligned strategy. Forty-three percent of now:pensions’ global equity investments’ climate targets have been approved by the Science Based Targets initiative (SBTi), representing over 30% of its entire portfolio. In addition, the master trust has reported a reduction in portfolio carbon emissions intensity – from 63.1 tonnes of greenhouse gas per £1 million (US$1.29 million) invested across Scopes 1 and 2 in 2023, to 52.0 tonnes in 2024. “Earlier this year, we took the decision to implement a new investment strategy to our portfolio,” said Martyn James, Director of Investment at now:pensions. “This was set, not only with the ambition of improving performance and value for money for our members, but to also comprehensively improve our sustainable approach to investment. These developments put us well on our way to achieving our objectives.”
