In the best interests of the Fund we have set a net zero by 2050 goal for the investment portfolios. One of the most important ESG factors to consider is climate risk, the Fund's goal is as follows:
Our goal is to protect investments from climate change risk, identify opportunities to benefit from the transition to net zero, and secure a sustainable financial future.
Our climate risk work is based on scenario modelling, which enables us to put numbers around the risk, and make decisions based on what is the best financial outcome for the Fund. Managing climate risk is about more than just decarbonisation, we also focus on driving positive change through engagement, and identifying the investment opportunities which are presented by the transition to net zero.
If the Fund is invested in companies which aren't prepared to adapt to the challenging landscape of the future, these companies will likely fail and the Fund will lose money.
Biodiversity and nature are closely linked to climate change, and scientists believe that there can be no net zero future without a reversal of biodiversity loss. We are in the process of developing ways to manage biodiversity and nature-related risks, alongside identifying investment opportunities in this area. We have broadened our reporting to include information and case studies around nature, and this is our first ever Climate and Nature Report.
How we manage climate risk:
- Focusing on top emitters
- Planning to divest from fossil fuels by 2030 and ensure all remaining holdings can transition
- Investing in forward-looking companies
- Understanding biodiversity risks
- Transparently reporting our efforts
- Allocating to renewable infrastructure and climate solutions
- Working with investment managers to evolve their approach
The information in this report is intended to help illustrate the wide range of work that we do, alongside monitoring our decarbonisation progress. Through this work, we aim to achieve real World change, and create a sustainable future for our Fund.
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2024 WPF Climate and Nature Report (PDF) [5MB] (opens new window)
In order to give ourselves the best chance of getting to net zero by 2050, we tackle this issue from many different angles. Our climate risk work is based on scenario modelling, which enables us to put numbers around the risk, and make decisions based on what is the best financial outcome for the Fund. This work has highlighted new investment opportunities, like Paris-aligned passive equities and sustainable active equities. Our innovative Climate Opportunities (Clops) portfolio spans debt and equity in diverse sectors, local renewable infrastructure, climate tech VC, and nature-based solutions, driving real-world change.
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