TPT Retirement Solution has committed to reduce the carbon intensity of its portfolio by at least 25 per cent by 2025, as part of its new Climate Action Plan.
The workplace pension provider, which provides pensions to 2,600 employers and 425,000 members, says this will align its investments with the Intergovernmental Panel on Climate Change (IPCC) decarbonisation trajectory for the 1.5°C scenario.
Over the longer term TPT – like almost all workplace pension providers – is committed to halving portfolio emissions by 2030 and achieving net zero carbon emission by 2050.
As part of its 2030 commitments TPT says is also seeking positive change from 90 per cent of financed emissions operating in carbon intensive sectors, and this will rapidly increase investments towards business activities driving the abatement of greenhouse gases.
TPT says its has made these various net zero commitments through the Paris Aligned Investment Initiative (PAII) and has adopted PAII’s net zero investment framework as a way of unlocking investment opportunities and scaling up flows of investment necessary to participate in a successful transition to a low carbon economy.
TPT says its plan encompasses listed equities, corporate fixed income, sovereign bonds and real estate. It adds that it hopes to incorporate other asset classes once data and credible net zero assessment methodologies become available.
TPT Retirement Solution chief investment officer Cliff Speed says: “Businesses today are expected to operate – and invest – in a climate-ambitious way. For us, this means taking an approach to managing our investment risks and opportunities on behalf of our members in line with our fiduciary duty.
“We continue to develop our ability to measure the carbon intensity of our investment portfolio, as well as ensuring our operational emissions are aligned with our net zero ambition. As part of our plan, we have enhanced our assessment of climate-related risks and opportunities, embedded scenario planning and adopted metrics and targets.”
