HSBC Bank (UK) Pension Scheme, London, pledged to reduce by half the carbon emissions of its equity and corporate bonds portfolios by 2030, the spokeswoman confirmed.
The £36 billion ($48.8 billion) retirement fund will aim for net-zero for its carbon emissions from both its defined benefit and defined contribution portfolios by 2050.
As part of the latest effort, plan executives will also boost engagement with portfolio companies and stewardship in collaboration with the plan's managers. The trustees will engage with companies through the plan's managers to encourage them to develop plans to meet these targets, the spokeswoman said.
However, if ongoing engagements with portfolio companies end up insufficient, trustees will reassess the situation, she added, noting that the plan prefers engagement over divestment.
"The trustee recognizes the increased urgency with which climate change needs to be tackled and in it playing an active role in supporting the drive to decarbonize the economy," Russell Picot, chairman of trustee board for the HSBC Bank (UK) Pension Scheme, said in a news release.
"The time is right to take the next step to further embed climate change actions into our future plans for the benefit of our members," he added.
Also, Paris-based Fonds de Reserve pour les Retraites said on its website that it will cut the carbon emissions of its portfolio by 20% by 2025.
The fund has already reduced the carbon intensity of its portfolio by about 40% between 2013 and 2019.
FRR's pledge is to further reduce the carbon footprint of its developed market equity, corporate bonds and real estate portfolios.
FRR said it is a signatory of the Net Zero Asset Owner Alliance, whose members by 2025 must publicly announce their emission reduction objective. FRR has €26.3 billion ($30.5 billion) in assets.
Separately, on Monday a group of listed U.K. companies, among which were money managers such as Legal & General Investment Management and Aviva Investors, called on the U.K. government in a letter to require large companies to disclose net-zero transition plans with a clear timeline for implementation.
Commenting on the pledge, Michelle Scrimgeour, CEO of LGIM said in an emailed comment: "As long-term investors we play a pivotal role, not only in decarbonizing investment products on behalf of our clients but also influencing the real economy transition by engaging with and holding businesses accountable on their net zero transition plans."
"We need to see substantial change across economies and society globally to achieve this goal. While there is clear progress in many areas of industry, it will not be enough and we are supportive of the government in its aim to raise standards across the entire market," she added.