The Environment Agency Pension Fund (EAPF) is a defined benefit Local Government Pension Scheme with 39,500 beneficiaries and assets of £3.6 billion as of September 30th. EAPF has a strong focus on sustainable investing, accordingly they integrate ESG issues into all of their investment, engagement, and voting decisions.
As long term investors, EAPF recognizes Climate Change as a systemic and long-term material financial risk. To manage climate-related risks in their portfolio, the fund applies scenario analysis, carbon footprints 75% of their assets under management, and are compliant with the TCFD recommendations. Finally, EAPF works collaboratively with other investors through Climate Action 100+ and the Transition Pathway Initiative – a tool that ranks companies on their effectiveness to manage Climate risk, and reduce their carbon emissions – to engage with companies to mitigate and adapt to Climate Change.
Responsible Investment Report for 2017-2018