UK. Parliament pension fund makes ESG investments
The scheme’s annual report revealed that the fund is integrating environmental, social and governance issues throughout its investment process, while making a number of commitments to ESG-aligned mandates throughout the year to March 2021.
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First, the scheme invested in the BlackRock Global Renewable Power Infrastructure Fund III, making its first contribution in August 2020, with further capital calls made later in the year.
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The target allocation to the renewable fund is 5 per cent of scheme assets. As of the end of March 2021, 3 per cent or £2.6mn was allocated to the fund.
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During the year, the scheme decided to restructure its passively managed equities portfolio, by converting its regional market-cap weighted equity mandate with BlackRock to a global, low-carbon approach with the same manager.
The scheme has also allocated 30 per cent of equities to a global sustainable multi-factor equity mandate managed by Schroder Investment Management.
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