The London Pensions Fund Authority (LPFA) and Railpen have both reinforced their climate ambitions with the release of new progress reports, outlining actions to accelerate the transition to net zero and strengthen stewardship practices.

LPFA, which manages around £8bn on behalf of nearly 100,000 members, has published its first responsible investment (RI) report in five years, highlighting significant progress in reducing emissions and integrating climate action across its portfolio.

The fund reported a 75 per cent reduction in the carbon intensity of its listed equity holdings since 2017, well ahead of its 2030 interim target of 60 per cent.

Alongside this, LPFA has launched a new net-zero hub to improve transparency and track progress, and updated both its RI and climate change policies.

The fund also deepened its involvement in initiatives such as the Institutional Investors Group on Climate Change (IIGCC), Climate Action 100+, ShareAction, and the C40 Cities network, as well as joining CDP’s 2023–24 Science-Based Targets campaign, designed to encourage high-emitting companies to develop credible transition plans.

Commenting on the report, LPFA CEO, Joanne Donnelly, said: “Investing responsibly is about maximising returns while considering the real-world outcomes of our investments.

She claimed the report would “reinforce members' confidence” that the fund was working responsibly to maximise investment returns both for today and for their retirement.

LPFA RI manager, Paul Hewitt, added that accountability was a key driver: “We used the UK Stewardship Code as a good practice guide for what we should be saying about what we have been doing and why, as well as how we work together with LPPI, our asset manager, in delivering it.”

The responsible investment report follows the release of the fund's latest Investor Climate Action Plan (ICAP) progress report, which confirmed that more than 80 per cent of the fund was being managed for climate resilience, with emissions reduction and engagement targets in place across the majority of asset classes.

Meanwhile, Railpen has published an update to its net-zero plan, first launched in 2021.

The scheme confirmed that it remains on track to meet interim targets, having already surpassed its 2025 goal by reducing portfolio emissions 41 per cent by 2024, against a target of 25-30 per cent.

It said it is now on course to deliver a 50 per cent cut by 2030.

The latest assessment also showed that 74 per cent of in-scope emissions are under engagement, exceeding its 70 per cent target, while 23 per cent of assets are aligned to net-zero.

By 2040, Railpen expects 100 per cent alignment across material sectors, the update stated.

The firm's strategy will continue to be delivered across four pillars: risk management, policy engagement, asset stewardship and portfolio construction.

Railpen director of investment risk and sustainable ownership, Michael Marshall, stressed that tackling climate change is “intrinsically linked” to delivering long-term returns.

“Our long-term investment horizon exposes pension schemes to systemic risks like climate change, and how capital is allocated shapes our impact,” he said.

“We have a responsibility to make assets resilient to systemic threats while positioning portfolios for long-term opportunities.”

Echoing this, head of sustainable investment and co-head of sustainable ownership, Adam Gillett, noted that Railpen will now deepen its focus on driving “genuine, real-world emissions reduction” as systemic climate risks continue to rise.

The updates come as industry figures recently warned that pension scheme trustees and institutional investors must look beyond industry pledges when assessing whether asset managers are “genuinely committed” to net zero.

LCP stressed that while initiatives such as the Net Zero Asset Managers Initiative (NZAMI) have been a useful indicator of intent, providing targets and regular reporting, recent changes and the ongoing review of NZAMI highlighted the need for trustees to scrutinise their managers’ climate credentials more closely and directly.

---