Clara-Pensions commits to Net Zero investment emissions

Clara-Pensions, the member-first consolidator for defined benefit pension schemes announced a commitment to ensure its investment portfolio has net zero emissions by 2050.

This commitment will apply across all assets held by the Clara Pension Trust and Clara-Pensions. The announcement follows Clara having successfully completed The Pensions Regulator’s assessment process in November 2021.

Clara offers significant opportunities to improve member security through bringing pension schemes together. Alongside creating safer pensions, consolidating invested assets can accelerate alignment of defined benefit pension scheme assets with the Paris Agreement.

Clara, working with its Fiduciary Manager Kempen Capital Management, has set an initial long-term commitment (2050), an initial medium-term ambition (2030) and a short-term objective (2025) on climate change. These commitments extend beyond the base level required by the Net Zero Asset Managers Initiative of which Kempen was a founding signatory:

• Commitment 2050: Clara is committed to aligning with the Paris Agreement goals and contributing to a low carbon economy by 2050. Clara commits to have net-zero emission investments by 2050.
• Ambition 2030: Clara’s ambition is to be aligned with a path to achieving the Paris Agreement for all listed and non-listed investments.
• Objective 2025: Clara’s objective is to be aligned with a path to achieving the Paris Agreement goals for all listed investments.

Frank Oldham, on behalf of Independent Trustee Services, a Director of the Clara Pension Trustee, who led on the adoption of the commitment, said: “All of us who followed COP26 in Glasgow last November know how important it is that pension funds play their part in the transition to a carbon neutral world. As we start to take on members and assets, we have a clear commitment in place that shows how Clara will contribute to that change and seek to manage climate risks.

Environmental, social, governance (ESG) and other criteria are integrated into Clara’s investment process, and this Net Zero commitment forms one part of Clara’s Responsible Investment Charter.

The Clara Pension Trust and Clara-Pensions were supported by LCP partner Dan Mikulskis as they worked with Kempen to develop the Responsible Investment Charter and Statement of Investment Principles.

Read the full article here.