Climate Risk Faith Ward Environment Agency Pension Fund LAPFF 5 December 2013.

Climate RiskFaith WardEnvironment Agency Pension Fund

LAPFF5 December 2013

Life before stranded assets Policy commitments to address climate risk in FSS, SIP

and Responsible Investment strategy Founder member of IIGCC Integration of climate change risk into strategic asset

allocation

ESG risk built into manger selection & monitoring Environmental and carbon foot printing of active listed

mandates Allocations to climate sensitive infrastructure, real estate,

agricultural land, timberland and sustainable assets.

Where did that get us?

Carbon footprint of active equities 26% less than the MSCI AW

Where did that get us? Carbon footprint of active UK bonds 30% more efficient than the IBOXX £250 invested clean technology investment Investments in unlisted real estate and sustainable infrastructure

Threadneedle Low Carbon Workplace Fund - £15m invested by EAPF

Research reports with our fund Managers

Supported research and advocacy by IIGCC

Supported other funds in developing strategies

Carbon tracker

Being relatively good is not enough !

The Green Light ReportAsks of Pension Funds• Policy & training on carbon

risk• Evaluate carbon risks in

portfolio• Challenge capital allocation

of underlying hydrocarbon companies.

• Work collaboratively• Look to low carbon

alternatives

What next?

Refresh committee members training on carbon risk

Review policy and strategiesImprove communications to members on

what we have already done and our plans going forward.

Dig deeper into the funds exposure to fossil fuels

Digging deeper Evidence base Lack of robust data to establish risk

ACTION NEEDED Engage collaboratively with the legislature and reporting

bodies to improve publicly available fossil fuel reserve data. Challenge company CAPEX plans and support transition Constructive dialogue – disinvestment not a progressive

solution Raise awareness and work with others

Questions and Answers

More information on our website

www.eapf.org.uk