12 leading UK pension funds to collaborate in support of climate transition in emerging markets

A group of 12 leading UK pension funds convened by the Church of England Pensions Board, representing £400bn assets under management and working on behalf of over 18 million members, will jointly consider how to support the climate transition in emerging markets.

Recognising the urgency of supporting the climate transition in emerging economies, the 12 funds committed to explore how greater impact could be achieved through a shared understanding of the need, opportunity and mechanisms to provide such investments in these markets.

The intervention was agreed following an investor roundtable hosted by the Church of England Pensions Board with the UK Pensions Minister in the context of the UK’s COP26 Presidency of the United Nations Climate Change Conference.  Ahead of COP27 in Egypt, the group plan to set out the steps they intend to take in line with their respective investment strategies. The Funds issued the following statement:

As UK Pension Funds we:

• Recognise the important role that asset owners can and should play in supporting emerging economies in achieving their climate targets. 
• Are committed to better understanding the needs of emerging economies and the climate transition finance that will be required by governments and companies.
• Are committed to working together, in line with our fiduciary responsibility, to consider how we may scale investments in support of the climate transition in emerging economies.
• Are committed to working with the UK COP26 Presidency and other International Financial Institutions to consider the most practical and effective way to target and scale the funding that could be provided from UK Pension Funds
• Recognise the urgency of the transition and are committed to working together ahead of COP27 in Egypt, to be in a position by the COP to outline our response.

Clive Mather, Chair of Church of England Pensions Board, said “We are committed to supporting the global climate transition and to playing the role we can, on our members’ behalf, to support real world emissions reductions in emerging markets.”

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