Border to Coast Pensions Partnership, in line with its 2021 commitment to promoting a low carbon economy, confirms that it has made £8.3bn worth of investments in climate solutions.
According to the newly released climate change report for the year ending March 31, 2023, investments aimed at lowering carbon emissions account for £6.9bn of equity and fixed-income assets.
Additionally, as of March 31, 2022, its private markets deployment in investments supporting a lower carbon economy had increased from £600m to £1.4bn, a more than twofold increase.
The company’s report, following the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, also offers an update on its net zero implementation plan’s advancement.
The report indicates progress, with net zero targets and metrics encompassing all listed equity and a portion of the pool’s fixed-income assets, representing 57 per cent of total assets under management.
Border to Coast says it is engaging with companies responsible for 73 per cent of the financed emissions in its portfolio. The report indicates a 47 per cent reduction in funded emissions compared to the 2019 baseline, on track for the desired 53 per cent reduction by 2025.
Additionally, carbon intensity measurements like weighted average carbon intensity (WACI) and carbon intensity are 6-8 per cent lower than at March 31, 2022. Furthermore, enterprises that are thought to be aligned with or moving towards net zero aims account for 44 per cent of the portfolio’s financed emissions.
Border to Coast chief investment officer Joe McDonnell says: “While climate change creates risks to both society and investors, there are also investment opportunities related to the transition to a Net Zero economy. This will require new business models, new companies and new infrastructure, which represent potentially attractive investments. As long-term investors, we are able to support Partner Funds in providing capital to support this transition.”
