Pension Protection Fund, London, increased its investments in assets aligned with net-zero economic goals to 11% compared with 4% in 2020, according to its third annual climate change report.
The share of the PPF's equity portfolio allocated to companies that have set or committed to a science-based target increased by a third to 43% from 2021, the £32.5 billion ($41.2 billion) lifeboat fund for pension funds of insolvent U.K. employers said in the report.
In addition, the PPF said its offices are entirely supplied with electricity from renewable sources and the fund achieved a 59% reduction in energy consumption from its data centers. The fund wants to achieve net zero in its operations by 2035.
"Addressing the risks and opportunities arising from climate change is key to our responsible investment and organizational goals," said Claire Curtin, head of ESG and sustainability, in a news release. "We believe placing sustainability at the heart of our activities is essential to mitigating some of the material ESG (environmental, social and governance) risks we face. Our climate-change report helps to build understanding of our strategy and demonstrates how the PPF is trying to use its influence as a force for good."
"For our investments, we seek to contribute to the global transition to net zero through our portfolio and engagement activities," Ms. Curtin added in the release. "In the past two years, we've gathered climate assessments across every investment in the fund so we can see how the fund's position aligns to net zero and the Paris Agreement."