Fossil fuel restrictions implemented in UK ethical investment fund managed by trust organization
The People's Partnership Announces New Decarbonisation Target for Ethical Fund
The People's Partnership, the provider of The People's Pension, has announced a series of significant changes to its Ethical Fund. The changes include a blanket exclusion of fossil fuels, a strict decarbonisation target, and an aim to cut the strategy's carbon intensity by at least 50%.
The conference announcing these changes will take place on the People's Partnership's website's Annual Conference on 25 October in London. Leanne Clements, head of responsible investment for the People's Partnership, and the founder of The People's Partnership, are scheduled to speak at the event.
The People's Partnership's Ethical Fund currently has 65.8% invested in US equities. The top holdings of the fund are Nvidia (5.81%), Microsoft (4.78%), and Apple (3.06%).
The new decarbonisation target is part of the People's Partnership's commitment to aligning its investments with the Paris Agreement. The Ethical Fund will exclude all companies with evidence of a tie to fossil fuels, including reserves, production, related revenue, or power generation.
Daniel Coombes, ESG integration manager at the People's Partnership, commented that the fossil fuel exclusion is a small but important step towards creating a net zero portfolio by 2050. The People's Partnership has also expanded its exclusions to include various industries such as weapons, alcohol, tobacco, gambling, adult entertainment, unsustainable palm oil, recreational cannabis, and for-profit prisons in its Ethical Fund.
The People's Partnership's Ethical Fund already excluded severe ESG controversies and controversial weapons. The fund aims to track the performance of the global equity market while only selecting socially responsible investments.
As of 31 August 2024, approximately 13% of the previous strategy of The People's Pension's Ethical Fund was invested in companies with ties to fossil fuels. The People's Partnership intends to further reduce the carbon intensity of its Ethical Fund by 10% every year.
With 6.7m members, and 99% of them invested in the master trust's default fund, the People's Partnership's Ethical Fund now gives members the opportunity to invest their savings in a way that aligns with their ethical views. The conference on 25 October in London promises to be an important step in the People's Partnership's journey towards a more sustainable future.
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