Now Pensions commits to net zero by 2050
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Master trust Now Pensions is committing to net zero by 2050, increasing green and sustainable investments and targeting higher growth. The provider said half of its net assets will be in sustainable bonds and equities by the end of this year.
The £2.5bn master trust said it supports a 50% emissions reduction by 2030, consistent with the IEA and IPCC reports.
“The changes announced to our investment strategy demonstrate our commitment to sustainability and responsible investment which targets having over 50% of the net assets value of the portfolio aligned to the trustee’s ESG principles by the end of 2021," said Joanne Segars, who chairs the trustee.
"I am delighted, too, that the Trust has committed to reach Net Zero by 2050, with an interim target of 2030. We believe the focus on ESG supports better long-term financial outcomes for our members in later life," she added.
“The changes announced to our investment strategy demonstrate our commitment to sustainability and responsible investment which targets having over 50% of the net assets value of the portfolio aligned to the trustee’s ESG principles by the end of 2021," said Joanne Segars, who chairs the trustee.
"I am delighted, too, that the Trust has committed to reach Net Zero by 2050, with an interim target of 2030. We believe the focus on ESG supports better long-term financial outcomes for our members in later life," she added.
Patrick Luthi, CEO, NOW: Pensions said: “These changes put sustainability firmly at the heart of our investment strategy. We believe that financial services should improve our quality of life and will continue to highlight inequalities and fight for a fairer UK pension system to deliver the best retirement outcomes for our members.”
The revised investment approach will see members’ funds invested in an equity fund which invests in companies that have stronger sustainability characteristics and lower carbon footprints. Now has also increased its allocation to green and social bonds and has invested in a low carbon ESG equity portfolio.
The scheme said that the trustee, along with its investment manager, is currently exploring an additional sustainability mandate with a greater focus on environmental and social solutions that will deliver the higher return objective.
Other changes in the portfolio include an increase in the return objective for the diversified growth fund, and extending the glidepath to retirement from 10 to 15 years.
