United Nations staff pension fund plans to cut CO2 emissions by 40% by 2025

Monde
On the 06/18/21 at 3:33PM

by

Adrien Paredes-Vanheule

The pension scheme will also monitor CO2 emissions targets on sectors highlighted by the Net-Zero Asset Owner alliance.

The United Nations Joint Staff Pension Fund (UNJSPF) on Thursday announced new reduction targets for the greenhouse gas emissions induced by its investments. These include a 29% trim of its CO2 emissions generated by its equities and corporate bonds portfolios in 2021 (compared to 2019 level) and a 40% cut in 2025.

“Climate change is a critical challenge that we need to address. With this ambitious commitment, we want to accelerate the transitioning of our investments towards a 1.5°C scenario, addressing Article 2.1c of the Paris Agreement,” said Pedro Guazo, representative of the secretary-general for the investment of UNJSPF assets.

The UNJSPF, which oversees more than $85bn of assets, said those targets will be achieved through divestment and engagement in companies held in its portfolios. Short-term portfolio-level reductions will be achieved predominantly through divesting, it specified.

In addition, the Office of investment management (OIM) of the United Nations staff pension fund said it will monitor sector targets on the Net-Zero Asset Owner Alliance’s priority sectors (oil and gas, utilities, steel, cement and transport – aviation, shipping, heavy and light duty road). It  committed to take action to prompt further greenhouse gas emission reductions, in order to align with the Alliance’s recommendations.

The OIM said it will intensify its existing active engagement to promote sustainability and climate action. “We will be engaging companies with climate-related objectives prioritizing the largest polluters of OIM’s portfolio. We want to ensure companies’ strategies, activities and actions are aligned with the goal set in the Paris Agreement. The OIM will also take steps to identify and increase exposure to transitioning companies and green investments,” commented Toru Shindo, OIM’s chief investment officer, in a statement.

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