We’re delighted to be a founding investor in new ground-breaking passive equity portfolios based on Paris aligned equity indices. These indices were developed by FTSE and Brunel Pension Partnership, and launched at the London Stock Exchange on 2 November.
This is a major step forward from Low Carbon indices, adding an ongoing carbon reduction of 7% pa. Additionally, data collected by the Transition Pathway Initiative (TPI) will enable the index to increase the amount invested in the companies performing best on climate. This will incentivise companies to perform better in this respect, as allocation to the index will be to the companies most aligned with achieving Net Zero.
Being part of this initiative allows the EAPF to achieve its responsible investment commitments in a simple and cost effective way. But also, in making this index publicly available, we expect all investors (regardless of their size or experience) to be able to access investments that are aligned with achieving net zero in line with the Paris accord.
This is a cornerstone of our ambition to become a net zero pension fund by 2045.
Read more about our Net Zero policy.
Find out more about the Paris Aligned Benchmarking indices on the Brunel Pension Partnership site.