British pension provider The People’s Pension has tightened climate and stewardship requirements for fund managers, it said in a statement on Monday. Under the new responsible investment policy, managers investing on behalf of the £26 billion (US$32.6 billion) scheme must commit to net zero emissions by 2050, and show that they are adequately resourcing stewardship. Those who fail to meet the new standards will be put on review. The People’s Pension master trust invests exclusively through third-party index fund managers, and relies on them to implement its responsible investment priorities. “Gone are the days of ‘tea and cake’ engagement,” said Leanne Clements, Head of Responsible Investment at the People’s Partnership, the entity that runs the pension scheme. “What we want from our fund managers is evidence of a targeted approach to engagement, rooted in a robust theory of change to achieve maximum impact.” The new policy prioritises climate change, nature and human rights. Last month, the scheme, which has 6.7 UK members, moved £15 billion into ‘climate-aware’ funds that are aligned with the goal of keeping global temperature rises below 1.5°C degrees.
