Investing responsibly isn’t just good for the world: it also makes good financial sense. Here’s an update on what we’ve been doing.

Climate change is a financial risk to the Scheme

Climate change can affect the value of the Scheme’s investments. Managing these risks carefully is part of our duty to members. We are committed to reaching net zero emissions by 2050, with an interim target of reducing the Scheme’s carbon footprint by 50% by 2030, measured against a 2019 baseline.

The Scheme’s estimated carbon footprint has decreased by around 64% since 2019

This means we’re currently on track to meet our 2030 interim target.

We track our progress using four measures:

• total carbon emissions
• carbon footprint
• the proportion of assets held in companies with approved science-based emissions targets
• the proportion of our investment managers’ engagements that focus on climate-related topics.

This last metric measures how often our investment managers are using their relationships with the companies we invest in to push them to take climate change seriously.

Investment managers must consider climate change when selecting investments. And they are not allowed to make new investments in climate-unfriendly industries.

We also invest directly in the transition to a cleaner economy

The Scheme holds investments in renewable energy infrastructure, including wind and solar funds. These support the transition to net zero while generating long-term returns for members.

Every three years we model different climate futures

This helps us understand how different climate outcomes could affect the Scheme’s investments, liabilities, and the strength of its sponsor. Our most recent analysis, in 2024, concluded that climate change is a material but manageable risk to the Scheme.

Read the full climate change report.