Corporate Adviser
  • Content Hubs
  • Magazine
  • Alerts
  • Events
  • Video
    • Master Trust Conference 2024 videos
  • Research & Guides
  • About
  • Contact
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG
No Result
View All Result
Corporate Adviser
No Result
View All Result

LGIM points finger at 3°C DB schemes

by John Greenwood
October 25, 2021
carbon emissions
Share on FacebookShare on TwitterShare on LinkedInShare on Pinterest

Legal & General Investment Management (LGIM) has pointed the finger at defined benefit schemes for being behind the curve on climate transition.

The asset managers says that the typical DB scheme is currently aligned to a 3°C outcome – twice the Government’s target of keeping global warming to within 1.5°C, and out of step with an increasing number of DC schemes that are targeting Paris-aligned net zero targets.

LGIM’s figures come from data that analyses the average allocation of the UK DB pension market, as disclosed in the PPF Purple book 2020.

The figures follow a call earlier this month from Make My Money Matter CEO Tony Burdon at the Corporate Adviser Summit, demanding that all pension schemes be required by law to follow net-zero strategies. His organisation calculates that despite £800bn of pension assets adopting net-zero strategies, £2 trillion is sitting in pension funds that had not made this pledge. “These pension funds are driving 2.7 degrees warming which could have catastrophic effects for the planet,” said Burdon.

Nick Stansbury, head of climate solutions at Legal & General Investment Management (LGIM) comments:

“We welcome the opportunity for greater transparency on how UK pension schemes are aligned to the Paris Agreement. Our own analysis shows that the typical DB scheme is currently aligned to a 3°C outcome – twice the Government’s target of keeping global warming to within 1.5°C.

“We have been encouraged by the number of schemes who are addressing the urgency of climate risk by starting on the pathway to decarbonisation; but it is clear that there is much more work to be done if the UK is to meet its 2050 commitments.”

“LGIM is committed to helping schemes transition their assets in line with global pathways towards net zero by 2050 and will work collaboratively with clients to set decarbonisation goals for their portfolios. At LGIM we engage with companies and policy makers to drive real change, support our clients in understanding the issues and setting their own net zero targets and will continue to develop our product range to broaden access to Net Zero aligned strategies across asset classes.”

 

Corporate Adviser Special Report

REQUEST YOUR COPY

Most Popular

  • Death-in-service benefits excluded from IHT grab

  • Aviva launches ‘flex first, fix later’ retirement option for master trust savers

  • Laura Mason: This is the moment for targeted pension support

  • Baroness Drake leads revived Pensions Commission re-examining AE levels and SPA

  • Mansion House speech signals pensions reform but omits phase 2 review: industry reaction

  • Industry welcomes revived Pension Commission

Corporate Adviser

© 2017-2024 Definite Article Media Limited. Design by 71 Media Limited.

  • About
  • Advertise
  • Privacy policy
  • T&Cs
  • Contact

Follow Us

X
No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.