Three UK pension asset owners have signed up to the UN-convened Net-Zero Asset Owner Alliance.

As reported by our sister publication, European Pensions, Phoenix Group, Legal & General (L&G) and Rothesay all joined alongside Germany’s largest pension fund under public law, Bayerische Versorgungskammer (BVK), and Asia- and Africa-focused insurance group, Prudential plc.

The five new signatories have added a combined USD 900bn AUM to the alliance, meaning it now consists of 42 assets owners managing a combined USD 6.6trn of assets.

By joining the alliance, members commit to transitioning investment portfolios to net-zero greenhouse gas emissions by 2050, consistent with a maximum temperature rise of 1.5°C above pre-industrial levels and considering the “best available scientific knowledge”.

Members also commit to create and report on intermediate targets every five years, and support the alliance’s contributions to the Glasgow Financial Alliance for Net Zero (GFANZ) and the Race to Zero campaigns, convened by UN special envoy on climate action and finance, Mark Carney.

Commenting on the new arrivals, Net-Zero Asset Owner Alliance chair, Guenther Thallinger, said: “We welcome the significant commitment this cohort of new asset owner members are making and the example they are setting.

“We hope they will encourage other investors to act urgently to align their investment portfolios with a 1.5°C scenario and to play their role in meeting the Paris Agreement.”

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