We take our responsibility as asset owners very seriously, and this is the third time we have produced a TCFD (Task Force on Climate-Related Financial Disclosures) report. We have been proactive with understanding climate risk, evidenced by it well in advance of being a mandatory requirement.

This complements our fourth year of producing a Climate Risk Report.

The TCFD report serves as a structured framework enabling companies to assess and communicate their exposure to climate-related risks and opportunities.

Our latest report meticulously outlines the current landscape of climate-related risks, reinforcing our enduring dedication to responsible investment practices.

This can lead to improved risk management, better decision-making, and increased confidence and support from investors, stakeholders, and the broader market.

We see TCFD reporting to be an essential part of communicating the steps the Fund is taking to manage climate related risks and incorporate climate risk management into investment processes.

We review the report in detail as part of our Pension Committee activities.

Highlights of the most recent report include:

  • Nottinghamshire County Pension Fund's carbon footprint metrics demonstrate ongoing improvement, with an 8% year-on-year decline in absolute emissions from equity investments reflecting our ongoing commitment to sustainability;
  • Nottinghamshire County Pension Fund is strongly positioned to adhere to DLUHC (Department of Levelling Up, Housing and Communities) regulations whenever they are implemented;
  • Nottinghamshire County Pension Fund’s extensive engagement with investee companies continues, with our activities encompassing a substantial 70% of the Fund's financed emissions.

 

As a pension fund with a long-term investment horizon, we maintain a diversified portfolio across various asset classes, regions, and sectors.

Our vested interest lies in ensuring that the market can effectively assess and price climate-related risks, and as shown, we are actively engaging with companies on these matters.

This aligns with our commitment to responsible and sustainable investment practices.

Councillor Eric Kerry, Chairman of Nottinghamshire County Council’s Pension Committee