The Church Pension Fund utilises different climate change tools to reduce its carbon footprint
The goal of the Church Pension Fund is to consistently reduce the carbon footprint of its investment operations. In November 2015, the Church Pension Fund signed the investors' Montréal Carbon Pledge. By participating in the initiative, the Church Pension Fund pledges to report annually on the carbon footprint of its investments.
In order to reduce the carbon footprint of its investment operations, the Church Pension Fund has identified a set of climate change tools. The applicable tools and their uses vary in accordance with the different asset classes. The following table shows the tools used by the Church Pension Fund for its different asset classes:
The primary tools of the Church Pension Fund include the ESG analysis (A) and engagement activities (B), which can be used in all asset classes. Green investments (C) also play a key role, since they are necessary for the development of new low-carbon solutions within different sectors and form the so-called positive carbon handprint. This can be utilised within equity and fixed income funds as well as other investments.
Carbon reporting (D) provides the Church Pension Fund with an up-to-date picture of the climate risks of its investments. Exclusion criteria (E) in fossil fuel investments reduce the Church Pension Fund’s carbon risk in direct equity investments and serve as a basis for discourse with asset managers. Low-carbon index products (F) are noteworthy options in terms of passive equity investments.