13 December 2022
TPT Retirement Solutions a workplace pension scheme providing services to over 2,600 employers and 425,000 members, has published its Climate Action Plan, which includes interim targets for reaching net zero by 2050, or sooner.
TPT has committed to reducing the carbon intensity of its investment portfolio by at least 25 per cent by 2025, aligning with the Intergovernmental Panel on Climate Change (IPCC) decarbonisation trajectory for the 1.5°C scenario. In the longer term, TPT commits to halving portfolio emissions by 2030 to ensure it achieves net zero emissions across scopes 1, 2 and 3 by 2050. Further, by 2030 TPT commits to seek positive change from 90% of financed emissions operating in high carbon intensive sectors and rapidly increase investments towards business activities driving the abatement of greenhouse gases.
The Plan is part of TPT’s strategy to become net zero by 2050. In June 2021 TPT made a net zero commitment through the Paris Aligned Investment Initiative (PAII). TPT has adopted the PAII’s Net Zero Investment Framework (NZIF) as a way of unlocking investment opportunities and scaling up flows of investment necessary to participate in a successful transition to a low carbon economy.
The Plan encompasses listed equities, corporate fixed income, sovereign bonds and real estate; TPT will incorporate other asset classes once data and credible net zero assessment methodologies become available.
TPT continues to have a regular dialogue with the investment community, policymakers and other financial industry participants in order to improve data quality, accelerate the integration of new asset class frameworks into strategic asset allocation and identify investment opportunities presented by the net zero transition. TPT is proudly part of the PAII Climate Solutions Project Group and a member of the PAII Global Steering Group.
Cliff Speed, Chief Investment Officer of TPT Retirement Solutions, comments: “Businesses today are expected to operate – and invest – in a climate-ambitious way. For us, this means taking an approach to managing our investment risks and opportunities on behalf of our members in line with our fiduciary duty.”
“Our efforts are sustained by our work with the Paris Aligned Investment Initiative (PAII), which provides a framework to help assess new opportunities that come from the global drive towards net zero. We continue to develop our ability to measure the carbon intensity of our investment portfolio, as well as ensuring our operational emissions are aligned with our net zero ambition. As part of our plan, we have enhanced our assessment of climate-related risks and opportunities, embedded scenario planning and adopted metrics and targets.”Source: The Pensions Trust
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