Examples of pension funds investing with impact
We have put together case studies showing that pension funds can invest with environmental and social outcomes while meeting their fiduciary duties and securing long term financial return on behalf of their members.
Smart Pension Master Trust
Smart Pension Master Trust is a Defined Contribution Master Trust in the UK that manages assets of more than £2.4 billion on behalf of over one million members. Smart is a leading the way on sustainable investing and are planning to be net zero by 2040.
Nest is a defined contribution pension scheme in the UK that manages assets of more than £21.4 billion on behalf of 11.1 million members, who make up a third of the UK workforce. It was set up by the UK government in 2010 to support its programme for auto-enrolment into pensions in the workplace.
Clwyd Pension Fund
Clwyd Pension Fund is one of the 89 local funds that form the Local Government Pension Scheme in England and Wales. Representing 52 employers, they have a total of 48,800 members and manage assets of £2.3 billion.
South Yorkshire Pensions Authority
South Yorkshire Pensions Authority is responsible for administering the Local Government Pension Scheme in South Yorkshire. With over 166,000 members, they represent 533 employers and manage assets of £9.9 billion. Alongside adopting the Impact Investing Principles for Pensions, they are aiming for a 5% allocation to impact investments and to achieve net zero by 2030.
Surrey Pension Fund
Surrey Pension Fund is part of the national Local Government Pension Scheme, with 109,00 members and total assets under management of £5.2 billion. In addition to being an adopter of the Impact Investing Principles for Pensions, around 80% of the fund is invested in companies deemed most likely to deliver the 17 SDGs by 2030.
Pensioenfonds voor het Slagersbedrijf (The Butchers’ Pension Fund)
Pensioenfonds voor het Slagersbedrijf is the pension fund for the Dutch butchers’ industry and has current AUM of c. €2.5 billion and 2,400 affiliated employers. Their impact investment is targeted towards the themes of food, labour, climate and water as those bear most relevance to the butchers’ industry.