Industry funds backed investment manager IFM Investors has unveiled a plan to mitigate climate change and target net zero by 2050.
The organisation, which worked with more than 20 superannuation funds, would restrict investments that derived material revenue from thermal coal, target zero coal exposure in the existing portfolio by 2030 and enhance its carbon footprint reporting.
It had exposure to thermal coal via heating businesses in Poland but said it would not completely exclude them as the companies were already working to reduce their volumes.
It would continue to invest in essential infrastructure assets such as transport and utilities but would focus on helping them to transition to a net zero world with new acquisitions needed to have considered climate change transitions as well as targeting net zero by 2050.
Manchester Airport in the UK, for example, had reduced its greenhouse gas emissions by one-third and was targeting net zero by 2038.
The firm established a taskforce last year to identify how each asset class would contribute to net zero and further work was being completed on how IFM’s non-infrastructure asset classes would meet the net zero targets.
IFM Investors chief executive, David Neal, said: “To continue delivering on our purpose, which is to protect and grow the long-term retirement savings of working people, it’s vital that we have a plan to mitigate the risks of climate change.
“We’re confident that the measures we are putting in place for our infrastructure portfolios are real, achievable and, we believe, in the best interests of our investors, their members and beneficiaries.”
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