The London Pensions Fund Authority (LPFA) has made progress on climate action, including an almost 80 per cent reduction in emissions intensity across listed equities and corporate bonds since 2019, according to its Investor Climate Action Plan (ICAP) Progress Report 2025.

The report set out how the LPFA was responding to the strong support for responsible investment revealed in its 2025 member survey.

The report said that more than 80 per cent of the fund was now covered by emissions reduction initiatives, with progress at or ahead of target on 11 of its 21 investment-related goals.

Of the remaining targets, six were newly adopted and yet to report data, while the fund was behind schedule on two but said progress was improving. Data was unavailable for the final two.

In areas of progress, emissions intensity across listed equities and corporate bonds fell slightly to 8.1 tCO2e per £1m invested in June 2025, down from 8.2 in December 2024, marking an almost 80 per cent reduction from the 2019 baseline.

Other positive findings included a new 3 per cent allocation to the Environment Opportunities asset class, which supported a fund-wide investment commitment of 5 per cent in climate solutions.

In addition, the report found that more than half of global equity holdings in material sectors were being assessed as aligned or aligning with the Paris Agreement, and operational emissions were already ahead of LPFA’s 2030 reduction target.

Commenting on the report, LPFA CEO, Jo Donnelly, said: “Our members tell us they care about how the LPFA is invested and about the long-term risks facing the fund. The ICAP is a key example of how we turn that feedback into action.

“This progress report shows that climate considerations are being built into our investment approach in a way that supports the financial security of the fund, so we can continue to pay our members’ pensions as they fall due.”

The report also highlighted areas where progress was harder to measure due to gaps in data and the different pace of change across asset classes.

The LPFA said it would continue to refine its approach in line with member priorities and long‑term financial goals.

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