ESG innovation

Border to Coast Pensions Partnership

Our Climate Opportunities strategy is a material part of our £16bn private markets programme. Since launch in 2022, it has received £2.6bn of commitments with £1.4bn deployed and more than £400m invested. The strategy enables our Partner Funds to invest in projects and businesses that are expected to make a material contribution to decarbonising the global economy. Examples of investments made to date include new solar, wind and battery storage projects, associated electricity grid infrastructure, hydrogen steel plants, carbon capture technology, and sustainable timberland.

Cumbria Pension Fund - Westmorland and Furness Council

Often in ESG matters there are many voices and views. The engagement approach adopted by Cumbria Pension Fund and Westmorland and Furness Council to develop its Responsible Investment Policy stands out as enabling a focus on areas of commonality and diffusing the tension between different interest groups. This involved surveying 43,000 fund members, meeting with employers and an independently chaired round table of stakeholders. This is transferable to other funds, in listening and responding, giving a greater feeling of ownership and at the same time meeting the overriding responsibility of being able to pay current and future pensions.

Essex Pension Fund

Essex Pension Fund is dedicated to responsible investment and has experienced a long period of above expected investment performance which has secured its position as a leader within the LGPS as we prepare to transition to a low carbon economy, to reach our net zero ambitions.Listening to our stakeholders, we’ve swiftly adopted policies to better ensure that our values and actions are aligned, and our investment strategy is proactive and future facing, fulfilling our primary responsibilities as a public sector pension scheme while working to build a better future for all by strengthening our commitment to our ESG priorities.

Greater Manchester Pension Fund

GMPF’s allocation to a Local Investments portfolio and impact assessment report sets a template for other funds to replicate this positive impact in their region and measure the scale of success. The framework allows investors to quantify and measure the success of their investments and importantly the case studies bring to life the positive impact on peoples’ lives. GMPF has been able to achieve both a commercial return and a positive local impact without compromising on either aim. Given the focus on LGPS funds to invest locally, this is an opportunity to contribute to the communities in which they belong.

LGPS Central

LGPS Central Limited (LGPSC) stands out for its innovative integration of ESG factors into every aspect of its investment strategy, driving substantial positive impact. In 2023, LGPSC launched a detailed Net Zero Strategy, conducted rigorous RI due diligence, and utilised AI-powered tools for climate risk analysis. Our engagement efforts led to significant reductions in financed emissions and impactful collaborative initiatives, like preventing synthetic microfibres in oceans and advocating for workers' rights. With comprehensive reporting, robust stewardship, and transparent communication, LGPSC sets a benchmark for responsible investment, making it a leader in ESG best practice.

London Borough of Lewisham Pension Fund

As a pensions committee, we’re privileged to safeguard the financial futures of our members. While paying benefits is obviously a priority, we can’t lose sight of the fact that our members require a stable and habitable world to retire into. The innovation we’re nominating is the body of climate-change work we’ve undertaken in 2023–2024 to secure this outcome for our members. The most critical innovation is the creation of a detailed climate action plan that sets specific targets in relation to key focus areas thereby creating a framework to annually assess progress and reset/ adjust our ambitions.

Wales Pension Partnership

The WPP Sustainable Active Equity sub-fund represents the launch of a truly sustainable offering for the Welsh constituent authorities and its members. It was the result of a deep and thoughtful collaboration and resulted in all 8 investing together for the first time. The launch process has also delivered wider positive externalities, through the advancement of active ownership, reporting and wider governance channels across the LGPS and beyond. We have also ensured through construction, sufficient flexibility to adapt to the WPP’s changing sustainability and engagement requirements, as these continue to evolve over time.

Wiltshire Pension Fund

Our submission for ESG innovation is our approach to social factors. We have designed an innovative framework of priority social factors. We have listened to our members’ views, and in response to what they have told us, we have designed an innovative new report on social factors in our investments, “Spotlight on Social”. This report demonstrates the wide range of work done by the Fund in addressing these issues, ranging from case studies, voting and engagement, site visits to affordable housing developments and creative use of industry tools to assess the impact our investments are having.

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