In April 2021, the Institute submitted its response to the Local Authority Pension Funds All-Party Parliamentary Group’s (APPG’s) inquiry into Responsible Investment for a Just Transition.

The inquiry seeks to examine how local authority pension funds (and institutional investors more widely) can ensure a just transition to net-zero carbon emissions and what role the UK government can play in supporting investors to do so. The APPG intends to publish its findings in October 2021 ahead of the United Nations Climate Change Conference of the Parties (COP26) in Glasgow, setting out recommendations to UN agencies, national, devolved and local government, policymakers, business and investors.

The Institute believes that it is important to address both the consequences of climate change and the social impact of a transition to a net-zero carbon economy. Any efforts to tackle the climate emergency, including through the deployment of ‘green finance’, must carefully consider the impact on people, societies, livelihoods, health and living standards.

We seek to mobilise private capital at scale to achieve a just transition, including: 

See more details in our full response below and join the third APPG Inquiry session ‘Responsible Investment for a Just Transition’ on Wednesday, 19 May at 2pm here.

In October 2021, the Local Authority Pension Funds APPG published its report, ‘A Just Transition’, urging pension schemes to cushion the economic effects of the UK’s net zero plan. It featured oral and written evidence from the Institute, including the potential for funds to undertake place-based impact investing. Read the report here.

The Local Authority Pension Funds APPG is an all-party parliamentary group chaired by Clive Betts, Member of Parliament. It is supported by the Local Authority Pension Fund Forum and The Smith Institute.