Tackling climate risk
We believe we have a credible plan to deliver strong long term financial returns as the impacts of climate change materialise. We believe financial risk and opportunities will come from the physical impacts, regulation and policy alongside increased competition from alternatives and technological innovation.
We have set ourselves a global leading objective..... to ensure that our Fund’s investment portfolio and processes are compatible with keeping the global average temperature increase to remain below 2°C relative to pre-industrial levels, in-line with international government agreements.
We have set three targets for 2020
- Invest 15 per cent of the fund in low carbon, energy efficient and other climate mitigation opportunities.
- Decarbonise the equity portfolio, reducing our exposure to “future emissions”* by 90 per cent for coal and 50 per cent for oil and gas by 2020 compared to the exposure in our underlying benchmark as at 31 March 2015.
- Supported progress towards an orderly transition to a low carbon economy through actively working with asset owners, fund managers, companies, academia, policy makers and others in the investment industry.
For more information on our Policy to Address the Impacts of Climate Change click here
We used carbon metrics from our Carbon Metrics Report to support us in setting targets to address the impacts of climate change. Download our Carbon Metrics Report here
The EAPF has recently partnered with Mercer and 17 fellow investment industry participants in a research study to gain further insight into the investment implications of climate change. To read the full report please click here