South Yorkshire Pensions Authority (SYPA) has reduced the financed emissions of its listed portfolio by nearly 60 per cent since 2019 and channelled more than £1bn into climate-related and natural capital investments, its newly published 2024/25 annual report and accompanying Task Force on Climate-related Financial Disclosure (TCFD) and stewardship reports have revealed.

The £11.1bn local government fund, responsible for the pensions of over 180,000 members, said its climate-focused allocation now accounted for more than 13 per cent of total assets, including commitments to renewable energy, forestry, and the Border to Coast Climate Opportunities Fund.

Over the year so far, SYPA has committed an additional £350m to the Border to Coast Climate Opportunities Fund and £175m to further renewable and nature-based assets.

In addition, two new £20m place-based investment funds were launched in March 2025 to support small and medium-sized businesses in the South Yorkshire region.

In its updated TCFD report, SYPA confirmed that financed emissions from its five listed portfolios had fallen by 59 per cent from 169 to 70 tonnes CO₂e per $m invested since 2019 - exceeding its 2025 interim reduction target of 52 per cent.

The authority is targeting net-zero emissions across its portfolio by 2030.

Outgoing director, George Graham, described climate change as “possibly the greatest systemic risk” facing the fund, but said SYPA’s strategy was designed to “tilt towards climate-positive investments without compromising financial resilience”.

Indeed, the fund’s latest climate scenario analysis, carried out with Hymans Robertson as part of its 2025 actuarial valuation, found that all tested climate pathways - including a “green revolution” and “delayed transition” scenario - maintained an acceptable funding success rate above 70 per cent over 20 years.

Meanwhile, the SYPA’s Stewardship Report also reaffirmed its stance that engagement, not divestment, was the most effective route to achieving real-world decarbonisation.

The report showed that the fund worked with the Border to Coast Pensions Partnership, Robeco, and the Local Authority Pension Fund Forum (LAPFF) on active stewardship, focusing on climate transition, labour management, water use, and board diversity.

The SYPA’s climate progress forms part of what has been a successful year for the fund so far.

Indeed, Aon’s independent governance review, published during the year, rated SYPA’s governance as “excellent”, highlighting best practice and “higher quality than the majority of other LGPS funds”.

The review credited the fund’s single-purpose local authority model as a key factor in its effectiveness.

Councillor and chair of the SYPA, Donna Sutton, said the report captured a year of progress across all areas of the fund’s work.

“From our ambitious climate commitments to our award-winning local investment strategies, SYPA is demonstrating leadership both nationally and locally,” she continued.

“As we look to the future, we remain focused on providing excellent service for our members while investing responsibly for the long term.”

SYPA also confirmed that director, George Graham, would retire at the end of 2025 after seven years leading the Authority, with recruitment for his successor already underway.

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