Creative Pension Trust has announced its target to achieve net zero carbon emissions for all member investments under management by 2050.
It includes an interim target of 50% emissions reduction by 2030 under the pension group’s ‘ZeroByFifty’ and ‘FiftyByThirty’ initiatives.
Chair of Trustees Roger Mattingly said: “The Trustees believe climate change is the most significant financially-material ESG issue for Creative Pension Trust and its members, particularly in the medium to long term.
“We believe the biggest risks linked to climate change are the longer term physical risk, such as rising sea levels and extreme weather conditions and also transition risk, where firms face real challenges to reduce their emissions. In order to mitigate that risk, the Trustees support the goals of the Paris Agreement to limit the global temperature rise to 1.5C above pre-industrial levels by 2050.”
While the Trustees anticipate transition risks in achieving the goals, including economic costs and a material impact on investment markets, their current scenario analysis has found these are expected to carry a lower overall financial impact than the physical risks that may emerge from global temperature increases.
They expect to manage the climate change risks and opportunities in line with the recommendations set out by the Task Force on Climate-related Financial Disclosures (TCFD).
The Trustees have committed to publish annual reports on the commitments starting in 2022.