Southwark Council has agreed to move £150m of its pension fund into a low-carbon investment.

The council will invest in the Blackrock Low Carbon Target Equity Fund, an investment which has 70% less greenhouse gas exposure than before.

The Southwark Pension Fund will be one of the first investors to join this fund following its seeding by the Avon Local Government Pension Fund in December 2017.

The council’s cabinet member for finance, modernisation and performance, Cllr Fiona Colley, said: ‘This was a decision based not just on our political and ethical concerns, but primarily on our belief that climate change and significant investments in fossil fuels present a long term financial risk to our fund.

‘This initial investment represents 10% of the total fund and we have in place plans to transfer further assets into low carbon investments, while ensuring consistent performance and keeping fees and costs at competitive levels.’