Task Force on Climate-related Financial Disclosures (TCFD)
Climate change is a hugely important issue for our employers and members and presents a real risk to the future investment returns of the fund. Whilst LGPS funds are not required to publish a Task Force on Climate-related Financial Disclosures (TCFD) report Shropshire County Pension Fund has taken the stance of voluntarily producing a TCFD report annually since 2020 alongside its climate risk report, as this is considered a blueprint for best practice in the investment industry.
The latest report at December 2025 is a consolidated climate risk and TCFD report and shows solid progress against a number of important measures:
- That the fund’s equity portfolio is 62% lower than its blended benchmark for financed emissions and despite increasing equity holdings and seeing values increase 75.6% since 2020 the Fund has seen a real reduction of 34.5% since the 2020 report.
- The fund’s equity portfolio is 65.2% below its blended benchmark for normalised finance emissions (Emissions per £1m invested).
- The fund’s equity portfolio is 58.2% lower than its blended benchmark in respect of Weighted Average Carbon Intensity (WACI). This means that, on average for every $m of economic output companies produce, the fund’s investee companies emit 58.2% fewer greenhouse gas emissions than companies in the blended benchmark.
The report demonstrates a strong direction of travel in line with the fund’s agreed Climate Strategy.
