Environment Agency Pension Fund, Bristol, England, intends to reduce the carbon emissions in its portfolios by half by 2030 and to reduce emissions to zero by 2045.
The £4 billion ($5.5 billion) pension fund said in its new policy on climate change, published Tuesday, that it intends to reduce emissions in its listed equity portfolio by 87% by 2025 and by 95% by 2030. The fund had £1.6 billion in equity investments as of September. Details on emission reduction targets for other asset classes were not available.
The fund also intends to allocate money to fixed-income, multiasset credit and private markets to fund the transition to a low-carbon economy, aiming to always have at least 33% in sustainable investments across all asset classes and by 2045. The fund wants to have at least 17% in sustainable investments by 2025.
EAPF is a member of the Brunel Pension Partnership, Bristol, a pool of U.K. local authority pension fund assets. EAPF said in its policy that it will work with Brunel to meet the aims of its policy.
A spokesman could not be reached for comment.