Net zero for Local Government Pension Schemes

Investing in climate solutions

14 Dec 2022

23 minutes

Investing in climate solutions

The fast view

  • As pressure to act on climate intensifies, Local Government Pension Schemes are developing strategies to deliver on their net-zero commitments.
  • There are multiple pathways to net zero. Those following the IIGCC framework comprise two broad components: ‘reduce the problem’ (i.e., lower emissions) and ‘invest in climate solutions’.
  • This paper assesses the merits and drawbacks of investment approaches aimed at ‘reducing the problem’.
  • We also explore how investing in climate solutions can offer long-term investors like the LGPS access to a powerful structural-growth tailwind, a real-world contribution towards net-zero objectives, and potential portfolio diversification.
  • We model an allocation to the Ninety One Global Environment strategy within a representative LGPS portfolio, to illustrate an allocation to climate solutions within the LGPS portfolio context.

Download PDF

General Risks. All investments carry the risk of capital loss.

Authored by

Atul Shinh
Investment Director
Deirdre Cooper
Portfolio Manager
Graeme Baker
Portfolio Manager
Daisy Streatfield
Sustainability Director
Joshua Kriskinans
Manager, Institutional

Important Information

This communication is provided for general information only should not be construed as advice.

All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

All rights reserved. Issued by Ninety One.