The first climate change investment policy framework has been launched for local government pension funds.
The Local Authority Pension Fund Forum (LAPFF) has issued the 'ground-breaking' framework to help guide members on the best way of approaching investment risks and opportunities that result from the impacts of climate change.
Research published last week found more than £16bn of council pension funds have been invested into fossil fuel companies.
Kieran Quinn, chairman of LAPFF, said: ‘LAPFF has not just been at the forefront of the climate change debate within the investor community, but has spearheaded investor action. This is because LAPFF members are clear about the impact on investors of new environmental regulation and the global transition to a low-carbon economy that’s well under way.
‘Our new framework builds on this record and provides much needed guidance for pension funds to minimise adverse financial impacts and maximise long-term economic returns for our members and ultimately pension fund beneficiaries.’
