Major pension removes asset managers ignoring climate issues

The Brunel Pension Partnership has announced a new climate policy, threatening to remove asset managers that do not adhere to climate protection policies.

The Brunel Pension Partnership, one of eight pooled Local Government Pension Scheme (LGPS) funds published the policy as a challenge to the sector, describing the asset management industry as "not fit for purpose".

Brunel will demand that by 2022 its holdings must act to bring their emissions in line with Paris benchmarks, advancing at least one level on the PRI’s Transition Pathway Initiative (TPI) management quality staircase each year, and be on TPI level 4 by 2022. Failure to do so will risk votes against the re-appointment of board members or being removed from the portfolios.

Brunel Pension Partnership chief investment officer, Mark Mansley, said: “Climate change is a rapidly escalating investment issue. We found that the finance sector is part of the problem, when it could and should be part of the solution for addressing climate change. How the sector prices assets, manages risk, and benchmarks performance all need to be challenged.”

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