Task Force on Climate-related Financial Disclosures (TCFD)
Climate change is a hugely important issue for our employers and members, and the Pensions Committee took on an extensive piece of work to review our approach, create a Climate Strategy and explore what steps the fund can take to reduce investment risk and further reduce its carbon footprint.
The report published by the Shropshire County Pension Fund in 2020 follows the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), and updated in December 2022, a blueprint for climate reporting which represents best practice in the investment industry.
Its publication follows an independent and in-depth review of the climate risks of the fund’s investment portfolio and is reviewed and published annually.
The latest report at December 2022 shows that the fund’s equity portfolio is 18.47% lower than its blended benchmark. This means that, on average for every $m of economic output companies produce, the fund’s investee companies emit 18.47% fewer greenhouse gas emissions than companies in the blended benchmark. The total equities portfolio has less exposure to companies with fossil fuel reserves and those exploiting coal reserves than the benchmark but also slightly less investment with companies who use clean technology than the benchmark.