Make My Money Matter’s Post

We urgently need to see much stronger stewardship from UK pension providers, and their asset managers, who invest in Oil & Gas expanders. Aviva and Legal & General are better than most in tackling the climate and nature emergency, and are two of the UK’s biggest pension providers. This is why we looked at their voting at Shell and BP this year. We were shocked with what we saw. Voting 44 out of 45 times with the management of these companies which do not have credible 1.5C aligned plans. Unfortunately, the same question could be asked of many pension funds and their asset managers. Too often we hear justifications given for soft stewardship on fossil fuel expansion, but the flaws are clear to see. Oil and gas majors are not aligning to 1.5 degrees, and it is wrong to see them as simply fulfilling fossil fuel energy demand - they also help perpetuate demand through their actions and strategies. And yes, we need fossil fuel energy for years to come - but that argument is a deflection from the fact that we need falling production, alongside a ramping up of clean energy and efficiency, if we are to hit climate targets and have energy security. For investors, there is no logic in voting against the Energy Transition Strategy of an energy company, and then voting in support of the board overseeing that core strategy. Nor does it seem sensible to work on reducing fossil fuel demand whilst at the same time supporting fossil fuel expanders. And to reject a climate resolution calling for the Paris alignment of mid-term scope 3 emissions on the basis it’s inflexible is kicking the can down the road. The average UK pension saver has around £3,000 invested in fossil fuel companies. By supporting O&G companies that are failing to align, many UK pension funds and asset managers are helping to drive a climate and nature catastrophe that will undermine future pensions, and the future well-being of pensioners. We call on our pension industry to step up, and do the following: 1) Equity: Vote strongly and publicly against companies that are not seriously on a 1.5 degree pathway. This should include voting against the Chairs, Directors, Remuneration, Auditors, Accounts and Transition Strategies. Exit the most mis-aligned. 2) Debt: Stop financing harm. Make no new debt investments in O&G expanders. Exit existing O&G expander debt holdings when financially viable. 3) Voice: Use your voice and collaborate with others to increase impact. Call on governments to regulate companies to set 1.5C transition plans (as the current UK govt has committed to) and implement them, and to do more to unlock opportunities to invest in climate solutions. Tony Burdon Make My Money Matter Net Zero Investor Mona Dohle Catherine Howarth OBE Lucie Pinson Vicky Sins Alex Wilks Charlotte O'Leary Sandy Trust Mark Campanale Mike Clark Mike Coffin https://lnkd.in/eEtGTdp8

A new poll has found that one in three Britons aims to avoid investing in fossil fuels through their pension, highlighting the imperative for the pension industry to divest from fossil fuels. According to a poll of 4,000 Britons conducted by DIY investment platform Tillit, one-third of respondents wish for more control over how their pension funds invest, arguing for a fossil fuel free investment portfolio. The desire to avoid fossil fuel investments is common across all age groups, with 30% of 55 to 64-year-olds and 19% of those over 65 expressing concern. Furthermore, the desire is even more pronounced among younger generations, with 40% of 18 to 24-year-olds and 44% of 25 to 34-year-olds sharing the same concern. This comes after research from Friends of the Earth revealed last year that pension schemes run by UK-based councils collectively hold £16bn of investments in the fossil fuel industry, with at least half of this investment being in new oil and gas exploration. edie

ERAFP (The french public service additional pension scheme) has updated its voting policy to recommend voting against the appointment or renewal of an auditor in the event of “breaches of shareholder interests or failed diligence” on sustainability data and reporting. The pension fund counts “failed diligence” as delays to auditing conclusions, insufficient details, or incomplete information. It added that this is relevant in the assessment of ESG and climate data in the context of the Corporate Sustainability Reporting Directive. Its head of responsible investment, Pierre Devichi, told Responsible Investor that the general recommendation to vote against an auditor in certain circumstances already existed in the pension fund’s guidelines, but that the point relating to the assessment of ESG data was added this year. He said that the strict voting requirements have been put in place because sustainability data – notably greenhouse gas emissions – is “increasingly analysed by ERAFP and other investors” to evaluate company transition plans and strategies. “It seemed important for us to align the assurance requirements for companies for both financial and non-financial data,” he said. #CSRD #assurance #Europe #pensionfunds

Think ESG is all fluff? The financial benefits of considering environmental risks, good governance and impact in investment decisions (and the costs of not doing so!) are real...

The UK's Oxfordshire Pension Fund has adopted a new responsible investment policy that excludes investment in companies that derive significant revenues from thermal coal, tar sands and tobacco production, as well as those producing controversial weapons where their use is complicit in breaches of United Nations’ human rights standards. “As a fund, we also have a commitment to be net zero by 2050," says Councillor Donna Ford, Chair of Oxfordshire's Pension Fund Committee. "Thermal coal and tar sands are some of the most intense emitters of greenhouse gases, as such they are not compatible with our net zero target, so we will be divesting from these highly polluting sectors and reallocating money to more sustainable investments.” Oxfordshire says it is unlikely that engagement with the companies that have significant activities in these areas will lead to meaningful change in their behaviour. Its investment will instead concentrate engagement efforts on sectors and companies where engagement will be more effective.

🌱 A study of more than 200 US public pension funds found that pro-ESG ‘blue’ states outperform those anti-ESG ‘red’ ones by a staggering $159 billion. 📈 States with pro-ESG laws returned an average 9% a year over more than a decade through 2022. In comparison, states with anti-ESG laws delivered 8.5%.   ♻️ ESG-themed investments are seen as a hedge against future risks posed by climate change, inequality and other environmental and social factors. ⛔️There is a heavy price to pay for a stance against ESG. After banning municipalities from hiring ESG-affiliated banks, Texas incurred up to $500M in additional interest on borrowing of $31.8B because of decreased competition among underwriters. 🙌 At Epic Advisory, ESG is at the core of our company values. In fact, Suzanne West, our Founder & President, is serving as an inaugural member of one of three ESG sub-committees formed by PENSION REAL ESTATE ASSOCIATION (PREA) to provide constructive guidance to the membership. 🍀 Are you embracing ESG in your investment decisions? Source: https://lnkd.in/et3J4k43 #ESG #ClimateChange #ImpactInvesting #PensionFunds #PrivatePlacements #WealthManagement #RE #PrivateEquity #FamilyOffice #AlternativeInvestments #PREA #GRESB

The California Public Employees Retirement System, New York State Common Retirement Fund and other large pension funds are voting against ExxonMobil's Board of Directors at the oil and gas company's AGM next week, citing ExxonMobil's lacklustre climate transition plan and attempt to sue investors that filed a shareholder proposal asking the company to reduce carbon emissions more quickly. CalPERS says it's a problem that ExxonMobil's board has allowed the company's CEO to "pursue a reckless and destructive effort ... For almost four decades, CalPERS has used its investments in major corporations to hold shareholder-elected directors and top officials accountable. Now, decades of shareholder rights are under threat from a lawsuit filed by the leaders of a powerful U.S. corporation. If ExxonMobil is successful in silencing voices and upending the rules of shareholder democracy, what other subjects will soon be off-limits?” Canada's largest pension funds hold over US$300 million in shares in ExxonMobil. Our pension managers insists on staying invested in the biggest climate polluters on the planet, even as Big Oil continues to undermine our retirement security. The least they can do is use their influence to protect shareholder democracy, reject ExxonMobil's highly insufficient climate plan, and vote against ExxonMobil's board.

Phoenix says Britain should mobilise its US$3.2 trillion pension system to fund the energy transition at the local government level. Britain’s vast pool of retirement savings could be doing five times more to fund the country’s energy transition if local governments were empowered to direct more regional investment, one of the country’s largest pension providers has said. Phoenix, which manages around £280 billion (US$352 billion) in assets, argues in a forthcoming paper that devolving some responsibility for decarbonisation efforts to the UK’s more than 300 local authorities could help bypass political inertia in Westminster and mobilise billions of pounds of private investment. That could boost Britain’s faltering energy transition in areas such as building and transport, the group says. This idea has already been adopted elsewhere, with EU nations trialling a more local approach to tackling emissions, as outlined in a new report by think tank E3G. But the UK has an advantage over its European neighbours: it has the third largest pool of pension money in the world at US$3.2 trillion (£2.63 trillion) – putting it behind only the US and Japan (with $35.6 trillion and $3.385 respectively), according to Willis Towers Watson. So far only a small fraction of this is funding Britain’s shift to low-carbon technologies, due to a mixture of conservative investment policies among pension schemes, regulatory hurdles and policy uncertainty, said Bruno Gardner, Phoenix’s Head of Climate. The opportunity is huge. Phoenix deems that between now and 2035, more than £2 trillion of investment is needed for the UK’s energy transition – 80% of which could be funded at the local level. “If barriers are overcome, the UK pension sector could meet up to half of that investment,” Gardner told ESG Investor. “But if you look at what we are doing today, we are on track to investing something like 10-15%.” With a UK general election due later this year and the opposition Labour Party ahead in the polls, he urged the next parliament to make tackling this a priority. Falling behind Phoenix’s call comes as the UK government faces growing criticism over its climate policy. Once considered a climate leader, the country has lost pace in recent years, failing to implement strong policies on carbon emissions outside the power and industry sectors. Last year, the Climate Change Committee (CCC) – a statutory body set up under the Climate Change Act to monitor progress to net zero – found the government was not on track to meet its emissions reduction targets in the next carbon budget, urging it to expand its ambition on building emissions. “The government can no longer dodge the question on the future of heating our homes,” Lord Deben, former Chairman of the CCC, said at the time. “ must accelerate the deployment of electric heating and press on with the infrastructure decisions that we have called no and low regrets.” But the gove

Phoenix says Britain should mobilise its US$3.2 trillion pension system to fund the energy transition at the local government level. Britain’s vast pool of retirement savings could be doing five times more to fund the country’s energy transition if local governments were empowered to direct more regional investment, one of the country’s largest pension providers has said. Phoenix, which manages around £280 billion (US$352 billion) in assets, argues in a forthcoming paper that devolving some responsibility for decarbonisation efforts to the UK’s more than 300 local authorities could help bypass political inertia in Westminster and mobilise billions of pounds of private investment. That could boost Britain’s faltering energy transition in areas such as building and transport, the group says. This idea has already been adopted elsewhere, with EU nations trialling a more local approach to tackling emissions, as outlined in a new report by think tank E3G. But the UK has an advantage over its European neighbours: it has the third largest pool of pension money in the world at US$3.2 trillion (£2.63 trillion) – putting it behind only the US and Japan (with $35.6 trillion and $3.385 respectively), according to Willis Towers Watson. So far only a small fraction of this is funding Britain’s shift to low-carbon technologies, due to a mixture of conservative investment policies among pension schemes, regulatory hurdles and policy uncertainty, said Bruno Gardner, Phoenix’s Head of Climate. The opportunity is huge. Phoenix deems that between now and 2035, more than £2 trillion of investment is needed for the UK’s energy transition – 80% of which could be funded at the local level. “If barriers are overcome, the UK pension sector could meet up to half of that investment,” Gardner told ESG Investor. “But if you look at what we are doing today, we are on track to investing something like 10-15%.” With a UK general election due later this year and the opposition Labour Party ahead in the polls, he urged the next parliament to make tackling this a priority. Falling behind Phoenix’s call comes as the UK government faces growing criticism over its climate policy. Once considered a climate leader, the country has lost pace in recent years, failing to implement strong policies on carbon emissions outside the power and industry sectors. Last year, the Climate Change Committee (CCC) – a statutory body set up under the Climate Change Act to monitor progress to net zero – found the government was not on track to meet its emissions reduction targets in the next carbon budget, urging it to expand its ambition on building emissions. “The government can no longer dodge the question on the future of heating our homes,” Lord Deben, former Chairman of the CCC, said at the time. “ must accelerate the deployment of electric heating and press on with the infrastructure decisions that we have called no and low regrets.” But the gove

Phoenix says Britain should mobilise its US$3.2 trillion pension system to fund the energy transition at the local government level. Britain’s vast pool of retirement savings could be doing five times more to fund the country’s energy transition if local governments were empowered to direct more regional investment, one of the country’s largest pension providers has said. Phoenix, which manages around £280 billion (US$352 billion) in assets, argues in a forthcoming paper that devolving some responsibility for decarbonisation efforts to the UK’s more than 300 local authorities could help bypass political inertia in Westminster and mobilise billions of pounds of private investment. That could boost Britain’s faltering energy transition in areas such as building and transport, the group says. This idea has already been adopted elsewhere, with EU nations trialling a more local approach to tackling emissions, as outlined in a new report by think tank E3G. But the UK has an advantage over its European neighbours: it has the third largest pool of pension money in the world at US$3.2 trillion (£2.63 trillion) – putting it behind only the US and Japan (with $35.6 trillion and $3.385 respectively), according to Willis Towers Watson. So far only a small fraction of this is funding Britain’s shift to low-carbon technologies, due to a mixture of conservative investment policies among pension schemes, regulatory hurdles and policy uncertainty, said Bruno Gardner, Phoenix’s Head of Climate. The opportunity is huge. Phoenix deems that between now and 2035, more than £2 trillion of investment is needed for the UK’s energy transition – 80% of which could be funded at the local level. “If barriers are overcome, the UK pension sector could meet up to half of that investment,” Gardner told ESG Investor. “But if you look at what we are doing today, we are on track to investing something like 10-15%.” With a UK general election due later this year and the opposition Labour Party ahead in the polls, he urged the next parliament to make tackling this a priority. Falling behind Phoenix’s call comes as the UK government faces growing criticism over its climate policy. Once considered a climate leader, the country has lost pace in recent years, failing to implement strong policies on carbon emissions outside the power and industry sectors. Last year, the Climate Change Committee (CCC) – a statutory body set up under the Climate Change Act to monitor progress to net zero – found the government was not on track to meet its emissions reduction targets in the next carbon budget, urging it to expand its ambition on building emissions. “The government can no longer dodge the question on the future of heating our homes,” Lord Deben, former Chairman of the CCC, said at the time. “ must accelerate the deployment of electric heating and press on with the infrastructure decisions that we have called no and low regrets.” But the gove