10 October 2019
A local pension fund is making a landmark £500 million investment in a new green fund.
Cheshire Pension Fund is one of the first investors in the Local Government Pension Scheme (LGPS) Central Climate Factor Fund, a fund which is moving away from companies with greater carbon emissions and supporting those investing in green technology.
Cheshire Pension Fund is the pension scheme for more than 100,000 members across 300 employers, including Cheshire West and Chester, Cheshire East, Halton and Warrington councils, Cheshire Police and Cheshire Fire and Rescue Service and a range of other employers in Cheshire. The Fund is administered by Cheshire West and Chester Council.
Councillor Hogg, Chairman of the Cheshire Pension Fund, said: “Our priority is our financial duty to pay the pensions of our 100,000 members and this fund will contribute well to that aim. We also know climate change is an important issue for us all so we were keen to support this fund.
“We welcome the fact that the new fund boosts investment in companies generating green revenues as these companies will be the leaders in shaping our future.
“This investment makes an important contribution to the Fund’s developing responsible investment approach. It is complemented by an audit we have requested on the climate footprint of the Fund’s wider investment portfolio.”
Cheshire Pension Fund and West Midlands Pension Fund are the first two investors in the LGPS Central Climate Factor Fund, which launched on 10 October and manages £2.1 billion.
The LGPS Central Pool is made up of nine local government pension funds, including Cheshire, Derbyshire, Leicestershire, Nottinghamshire, Shropshire, Staffordshire, Worcestershire, West Midlands and the West Midlands Integrated Transport Authority.
Councillor Carol Gahan, Cheshire West and Chester Council’s Cabinet Member for Finance and Legal, with Steve Wilcock, Finance and Investments Manager for the Cheshire Pension Fund, at the launch of the new fund.