Hertfordshire Pension Fund, Hertford, England, partnered with sustainable investment manager Osmosis Investment Management to launch a £100 million ($131 million) “resource efficient” global equity portfolio.
Since its launch, investments by the Osmosis Resource Efficient Core Equity Strategy have delivered an average carbon intensity reduction of 60%, a reduction in water consumption of 68%, and a reduction in waste generation of 64%, relative to the MSCI World Index.
The £6.25 billion Hertfordshire Pension Fund is part of the ACCESS local government pension scheme pool, and provides pension benefits on behalf of 124,000 participants.
The allocation forms part of Hertfordshire’s commitment to address the investment challenges that climate change and energy transition present to their passive equity holdings, and has been supported by their investment consultant Mercer. Osmosis is the sole advisor on the strategy, however UBS Asset Management also acts as the "execution manager," as part of an LGPS passive service agreement.
“As part of our evolving approach to responsible investment, we have agreed a challenging transition path line to become net zero by 2050," said Andrew Williams, chair of Hertfordshire Pension Committee, in the news release.
The fund will look to target investment in strategies that address risks such as climate risk and the efficient use of natural resources. This investment with Osmosis is a clear demonstration of the fund’s commitment to managing these risks and responsible investment generally,” he added.
The Osmosis Resource Efficient Core Equity Strategy also excludes tobacco and companies that breach the UN Global Compact’s social and governance safeguards. Osmosis currently manages £12.7 billion in assets and is headquartered in London.
