UK Pension Funds Channel £300M Into Green Energy and ESG-Aligned Investments

UK Pension Funds Channel £300M Into Green Energy and ESG-Aligned Investments

by  
AnhNguyen  
- 2025年4月16日

Two of the UK’s largest pension investment pools have announced nearly £330 million in new allocations targeting renewable energy, sustainable infrastructure, and healthcare innovation—marking a major milestone in advancing ESG priorities and carbon neutral strategy goals within the financial sector. 

The London Pensions Fund Authority (LPFA) is committing £250 million—approximately 3% of its £8 billion portfolio—toward environmental assets. Managed by Local Pensions Partnership Investments (LPPI), the funds will be directed through a newly created Environmental Opportunities Fund designed to accelerate LPFA’s transition to a net-zero portfolio by 2050. LPFA’s CEO, Jo Donnelly, reaffirmed the organisation’s commitment to protecting members’ pensions by actively engaging with asset managers and investing in companies facilitating the low-carbon transition. 

LPFA’s investments follow its adoption of the Net Zero Investment Framework developed by the Institutional Investors Group on Climate Change (IIGCC). This aligns with broader warnings that physical and transition-related climate risks could reduce UK pension returns by over 20% by 2040 if not mitigated through decisive climate action. 

Simultaneously, the Border to Coast Pensions Partnership, representing £55 billion in assets across 11 local government pension funds, has pledged £80 million under its UK Opportunities strategy. Half will be invested in life sciences real estate within the Oxford-Cambridge-London “Golden Triangle,” while the remaining £40 million will support renewable energy initiatives via Quinbrook Renewables Impact Fund II. 

In parallel, the UK Sustainable Investment and Finance Association (UKSIF) has released a landmark report urging comprehensive pension reform. UKSIF emphasizes that UK pension funds—managing over £19 trillion globally—must be strategically leveraged to scale ESG-aligned and carbon neutral investments. Key recommendations include updating fiduciary guidance, reforming pension structures, and aligning UK disclosure standards with global frameworks such as ISSB. 

Together, these investments and policy calls reflect a critical evolution in the UK’s sustainable finance landscape—where pension capital is poised to become a transformative force for ESG impact and net-zero innovation. 

 

资料来源 

https://www.sustainabletimes.co.uk/post/uk-pension-funds-pledge-close-to-300m-into-green-energy-and-innovation 

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