Clara-Pensions commits to net-zero investment portfolio by 2050

Clara-Pensions has announced a commitment to ensure its investment portfolio has net-zero carbon emissions by 2050.

The commitment will apply across all assets held by the Clara Pension Trust and Clara-Pensions, and follows Clara having successfully completed The Pensions Regulator’s assessment process in November 2021.

Clara, working with its fiduciary manager Kempen Capital Management, has set an initial long-term commitment (2050), an initial medium-term ambition (2030) and a short-term objective (2025) on climate change.

The defined benefit superfund has committed to aligning with the Paris Agreement goals and contributing to a low carbon economy by 2050, as well as having net-zero emissions.

Clara Pension Trustee director, Frank Oldham, on behalf of Independent Trustee Services, who led on the adoption of the commitment, said: “All of us who followed COP26 in Glasgow last November know how important it is that pension funds play their part in the transition to a carbon neutral world.

“As we start to take on members and assets, we have a clear commitment in place that shows how Clara will contribute to that change and seek to manage climate risks.

“This is an important journey, and I look forward to the evolution of our approach as Clara builds and scales over time.”

Clara-Pensions CEO, Simon True, added: “Clara is about long-term commitments. The most important is the commitment we make to stand behind the pension promises made to members.

“Today’s announcement shows that alongside this commitment, we can choose to invest our assets in a way that protects both the financial future of our members and the future of our planet.

“For members, trustees and sponsors, a transfer to Clara can be both safer and greener than the status quo.”

The Clara Pension Trust and Clara-Pensions were supported by LCP partner, Dan Mikulskis, as they worked with Kempen to develop the Responsible Investment Charter and Statement of Investment Principles.

Environmental, social, governance (ESG) and other criteria have been integrated into Clara’s investment process, and the net-zero commitment forms one part of Clara’s Responsible Investment Charter.

Working with Kempen Capital Management, Clara has also adopted several exclusion, engagement and voting policies, which have been published alongside Clara’s wider Statement of Investment Principles.

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