The London Pensions Fund Authority (LPFA) has announced plans to invest around £250 million in environmental solutions assets that will support its net zero ambitions.
That represents around 3% of the government pension scheme, which manages £8 billion in assets, with the investment going into a newly-launched Environmental Opportunities Fund.
The latest announcement supports the LPFA’s commitment to being a net zero fund by 2050.
As part of that commitment, signatories are required to publish a target for investment in climate solutions, i.e. technologies and businesses that mitigate and adapt to climate change, including renewable energy, energy efficiency or nature-based solutions like reforestation.
Jo Donnelly, CEO of the LPFA said: “The impact of climate change poses a financial risk to pension funds like ours so we’re taking climate action to protect our members’ pensions. Our net zero commitment means engaging with our existing investment managers to reduce our portfolio carbon emissions while also investing in companies that help our society transition to a low carbon future.
“We’ve worked very closely with LPPI [Local Pensions Partnership Investments] to get to this point and I’m delighted to see us taking such a step forward in our net zero commitment. I’m pleased that we are investing in a cleaner, greener future for our members, our society and future generations.”
Copyright © 2025 Energy Live News LtdELN