Scottish Widows launched its Global Environmental Solutions Fund, focused on directing pension investment into companies that provide solutions to critical environmental issues, such as global greenhouse gas emissions, food security, pollution and biodiversity loss.

As part of a suite of new strategies applying to £1.4bn worth of assets, the new fund targets companies involved in advancing alternative energy generation and supply, clean mobility, transport and infrastructure sustainability, forestry, sustainable agriculture, biodiversity preservation and pollution prevention.

Developed with fund manager Schroders, the fund invests in companies that derive at least half of their revenues from goods and services that facilitate sustainable alternatives in transportation, electricity and heat production, water use, agriculture, or industrial manufacturing. Companies that direct at least 20 per cent of capital expenditure to the adaptation of their businesses or products and services to the circular economy are also eligible.

Scottish Widows has also launched three regional equities funds which track decarbonising benchmarks. These funds, managed for Scottish Widows by BlackRock and Abrdn, look to invest in companies at the forefront of the transition to a low carbon economy, aiding Scottish Widows’ targets to halve the carbon footprint of all its investments by 2030 on its path to net zero emissions by 2050.

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