SAUL targets net zero carbon emissions by 2050 or sooner

22 June 2022

SAUL publishes: “As Trustee of SAUL, we’re responsible for investing SAUL’s money to help it grow so that we can pay you the pension we’ve promised. We invest in companies that we believe will give us a good return on our money to help keep the pension scheme healthy and sustainable for the future. As a large pension fund, we can help tackle big issues like climate change – issues you’ve told us are important to you. We do this through our engagement with companies, asset managers, regulators and governments. We can also manage the risks of climate change through our investment approach. In 2021, the Trustee established a Climate Change Working Group to consider SAUL’s response to the risks posed by climate change within the investment portfolio. As a result, we’re aiming for net zero by 2050 – or sooner if we can.

Net zero refers to the balance between the amount of greenhouse gases produced and the amount removed from the atmosphere. We’ll reach net zero when the amount of greenhouse gases we add is no more than the amount taken away.

We can do this by reducing reliance on fossil fuels, along with investing in renewable energy, planting more trees and engaging with companies on how they plan to reduce their own greenhouse gas emissions.

For investors like SAUL, targeting net zero in our investment portfolio means allocating more money to companies involved in action that will have a positive impact on climate change and reducing our investment in companies that haven’t set out plans to reduce their greenhouse gas emissions.

2050 sounds a long way off but we know there’s a lot of work to do to achieve our target. That’s why we’ll: Measure and monitor the greenhouse gas emissions from our investments, Reduce the carbon footprint of our investment portfolio by 50% by 2030 or sooner, Invest at least 15% of SAUL’s money where it can have a positive impact on climate change by 2025 at the latest, and Stop direct investment in companies that receive more than 5% of their revenue from the extraction and exploration of oil sands and thermal coal, or generating electricity from thermal coal, in the next 12 months.

We work closely with investment managers, who deal with the day-to-day running of our investments. As part of our commitment to our new net zero target, we’ll be asking these managers to improve their climate change reporting. This will help us take action if there are investments in our portfolio that don’t align with our goals.”

Source: Superannuation Arrangements Of The University Of London