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Climate Change Risk

The Cheshire Pension Fund (the Fund) recognises that, in addition to the wider impacts of climate change, owning investment assets with a high carbon footprint, poses a potential investment risk.

The Fund wishes to actively manage this risk and has therefore committed to annually commissioning an independent assessment of all its publicly listed investment assets to determine the Fund’s overall carbon footprint and assess potential climate change impacts and opportunities.

In 2020 the Fund first published the results of this assessment in its brand-new Climate Risk report, using the framework recommended by the Task Force on Climate Related Financial Disclosures (TCFD).  The Fund has continued to publish its Climate Risk report each year, providing an update on the Fund’s progress against its climate change targets as well as describing the broader steps the Fund is taking to manage climate-related risks and incorporate climate risk management into its investment processes.

We’re pleased to announce that the fourth TCFD report, for 2023, is now available. This again demonstrates our commitment to making positive progress in addressing the impact of climate change on the Fund’s investments.

The report highlights that the Fund has achieved its climate change targets and is:

  • Able to show an average reduction of 11.2% per year, since 2019, in our total equities carbon footprint – exceeding our target of 7.6% per year.
  • Now 51% lower than the FTSE All World market index for our total equity portfolio carbon footprint – achieving our target to be below 50% by the end of 2023.
  • Increasing our investments in sustainable and low carbon assets, including an investment of £328 million in two sustainable funds in May 2022.

 

Full 2023 TCFD report (569 KB)

Full 2022 TCFD report (1,425 KB)

Full 2021 TCFD report (2,101 KB)

Full 2020 TCFD report (1,773 KB)

 

Climate Change Strategy

Following publication of the above Climate Risk report in September 2020, the Fund is now publishing its Climate Change Strategy document. The publication of a stand-alone Climate Strategy document recognises the importance of the issue and draws together all of the Fund’s climate related policies, statements and targets into one consolidated document. The Climate Strategy was endorsed by the Cheshire Pension Fund Committee on 4 December 2020 and a link is provided below:

Climate Change Strategy – December 2020 (PDF 902 KB)

The media release to accompany the publication of the Climate Change Strategy is provided below:

Media Release (PDF 104 KB)