A larger majority of U.K. pension funds have made net-zero commitments and expect the government to help more, according to a Pensions and Lifetime Savings Association survey released Nov. 29.
Compared with 57% reporting commitments in May 2022, 68% now have them, according to the PLSA member survey in October. Of the 81 members responding, 51% have more than £3 billion ($3.7 billion) in assets and 93% have more than 1,000 participants.
For those pension funds with commitments in place, 9 out of 10 are targeting being net-zero compliant by 2050 or earlier, with 1 in 7 aiming for 2035 and 1 in 5 by 2040. For the 27% without net-zero commitments, 10% expect to have one within two years, the survey found.
While most pension funds surveyed reported significant progress in the transition to net zero, they also reported other priorities that reduced their attention to environmental, social and governance issues, including the cost-of-living crisis and market volatility. There was also less confidence in the U.K. about meeting climate targets, with 68% doubting it, compared with 59% in November 2022.
On the government's role in addressing climate risk, 69% of the pension funds surveyed felt it could do more to help investors, compared with 56% a year earlier.
For 75% of the pension funds, the quality of ESG data has improved, with 57% citing improved climate reporting by asset managers and 60% for investment consultants.
