The London Pensions Fund Authority (LPFA), managing £8 billion in assets for over 100,000 members, plans to invest about 5% of its total assets—roughly £400 million—into climate solutions by 2030.
This investment will support sectors such as energy efficiency, renewable energy, sustainable industry, transport, reforestation, and wetland restoration projects.
Currently, the LPFA holds around £150 million in climate-related assets through its fund manager, Local Pensions Partnership Investments (LPPI), in equity and corporate fixed income.
In April 2025, the LPFA committed an additional £250 million to environmental assets via LPPI’s new Environmental Opportunities Fund, bringing the total to the 5% target.
Jo Donnelly, CEO of LPFA, emphasized that net zero is a strategic priority. She said the fund aims to invest in opportunities that ensure it can meet pension payments for its members while supporting a low-carbon future.
The LPFA made a net-zero pledge in 2021, guided by the Institutional Investors Group on Climate Change (IIGCC) Net Zero Investment Framework, which requires setting targets for climate solutions investments.
Paul Hewitt, LPFA’s responsible investment manager, noted that the actual investment in climate solutions might be higher than 5%, as new guidance on infrastructure and real estate assets is emerging, potentially expanding what qualifies as climate solutions.
The economic benefits of this strategy are clear. A recent report by the UK’s Confederation of British Industry found that every £1 generated by the net-zero economy creates an additional £1.89 in the wider economy, highlighting the financial sense behind LPFA’s commitment.
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