The Tyne and Wear Pension Fund has committed to phased carbon reduction targets on the road to net-zero carbon emissions by 2050.

It is targeting reducing its carbon emissions from 2019 levels by up to 35 per cent by 2025 and by up to 60 per cent by 2030.

The commitments are the result of several measures the scheme has taken to improve its green credentials, including the production and reporting of carbon emissions data and an increased focus on climate risk within its investment strategy.

It also revealed that its carbon footprint had shrunk by nearly 30 per cent since 2010 and by 15 per cent over the past two years.

The scheme attributed the recent reduction to its investment of £650m into the Future World Index Equity Fund.

Following its net-zero commitment, the scheme will now produce a roadmap that will set out how it plans to deliver its policy.

It noted that it will work “closely” with its pooling partner, Border to Coast, and other investment managers to achieve its targets.

Commenting on the announcement, Tyne and Wear Pensions Committee chair, Councillor Anne Walsh, said: “While we all would like to see an earlier target, it must be recognised that delivering a net-zero carbon emissions target for the investment portfolio of a pension fund, that invests globally across a wide range of sectors and different asset classes, is materially more difficult than setting a target for an individual organisation.

“Working with our partners, we will draw up an action plan and will review our long- and medium-term targets every three years to ensure we remain on target and will seek to bring forward the net-zero ambition when this is considered possible.”

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