Border to Coast bolsters investments in climate solutions in push to achieve net zero | News

Border to Coast Pensions Partnership is continuing to increase allocation to climate solutions on behalf of partner funds, as it pushed to achieve net zero by 2050 or sooner.

In its latest Climate Change Report, Border to Coast reports £8bn of investment in climate solutions in its equity and fixed income portfolios, up from £6.9bn in 2023. and £2.5bn deployed through its private markets programme.

This includes capital deployed through its innovative private market Climate Opportunities proposition which has received a total of £2.6bn in commitments from partner funds.

The report also outlines how the pool has seen emissions from its portfolios fall 58% on 2019 levels, ahead of the interim target set in its Net Zero Roadmap (53% reduction by 2025). The reduction was the result of the launch of propositions with a lower carbon profile, the natural decarbonisation of asset classes, and changes in portfolio composition, Border to Coast said.

Mark Lyon, deputy chief investment officer, said: “We invest for the long-term, and this makes managing the risks posed by climate change paramount. The transition to a net zero economy will require wholescale changes to how the economy and society functions, and it will require significant capital investment. The collective scale offered by pooling enables the development of innovative solutions that not only expand Partner Fund access to the investment opportunities involved in decarbonisation – through the likes of the innovative £2.6bn Climate Opportunities strategy – but also to provide the capital needed to fund the energy transition and support global net zero goals.”

The pool’s sixth report in line with the recommendations of TCFD, which became mandatory for Border to Coast as an FCA-regulated asset manager in 2024, also highlights:

• 70% of assets under management are now covered by Border to Coast’s Net Zero Roadmap.
• 38% of financed emissions are emitted by companies considered to be aligned or aligning with net zero.
• Enhancements to RI policies to reflect Border to Coast’s net zero commitments and production of its first Thematic Engagement Plan, which includes a programme of engagement focused on net zero transition.

Border to Coasts’s climate-related investment opportunities include H2 Green Steel, where its Climate Opportunities strategy is supporting a hydrogen-powered steel furnace that will help to decarbonise industrial materials used in automotive, construction and white goods manufacturing. H2 Green Steel is building the world’s first large-scale green steel plant in Sweden.

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