Clara-Pensions, the member-first consolidator for defined benefit pension schemes, today (Wednesday 11 May 2022) announced a commitment to ensure its investment portfolio has net zero emissions by 2050.
This commitment will apply across all assets held by the Clara Pension Trust and Clara-Pensions. The announcement follows Clara having successfully completed The Pensions Regulator’s assessment process in November 2021.
Clara offers significant opportunities to improve member security through bringing pension schemes together. Alongside creating safer pensions, consolidating invested assets can accelerate alignment of defined benefit pension scheme assets with the Paris Agreement.
Clara, working with its Fiduciary Manager Kempen Capital Management, has set an initial long-term commitment (2050), an initial medium-term ambition (2030) and a short-term objective (2025) on climate change. These commitments extend beyond the base level required by the Net Zero Asset Managers Initiative of which Kempen was a founding signatory:
• Commitment 2050: Clara is committed to aligning with the Paris Agreement goals and contributing to a low carbon economy by 2050. Clara commits to have net-zero emission investments by 2050.
• Ambition 2030: Clara’s ambition is to be aligned with a path to achieving the Paris Agreement for all listed and non-listed investments.
• Objective 2025: Clara’s objective is to be aligned with a path to achieving the Paris Agreement goals for all listed investments.
Frank Oldham, on behalf of Independent Trustee Services, a Director of the Clara Pension Trustee, who led on the adoption of the commitment, said: “All of us who followed COP26 in Glasgow last November know how important it is that pension funds play their part in the transition to a carbon neutral world. As we start to take on members and assets, we have a clear commitment in place that shows how Clara will contribute to that change and seek to manage climate risks. This is an important journey, and I look forward to the evolution of our approach as Clara builds and scales over time.
Simon True, CEO of Clara-Pensions, added: “Clara is about long-term commitments. The most important is the commitment we make to stand behind the pension promises made to members. Today’s announcement shows that alongside this commitment, we can choose to invest our assets in a way that protects both the financial future of our members and the future of our planet. For members, trustees and sponsors, a transfer to Clara can be both safer and greener than the status quo.”
Environmental, social, governance (ESG) and other criteria are integrated into Clara’s investment process, and this Net Zero commitment forms one part of Clara’s Responsible Investment Charter. Working with Kempen Capital Management, Clara-Pensions has adopted a number of exclusion, engagement and voting policies alongside its climate commitments. These have been published, alongside Clara’s wider Statement of Investment Principles. (UPDATE: The current September 2023 Statement of Investment Principles can be found here.)
Only a third of pension schemes have set a target to reduce climate risk and Clara is the first ‘superfund’ consolidator to do so.
The Clara Pension Trust and Clara-Pensions were supported by LCP partner Dan Mikulskis as they worked with Kempen to develop the Responsible Investment Charter and Statement of Investment Principles.
ENDS
Media contacts
David Chambers – dchambers@headlandconsultancy.com / 020 3435 7465
Harriet Smith – hsmith@headlandconsultancy.com / 020 3435 7466
About Clara-Pensions
Clara-Pensions is the member-first consolidator for defined benefit pension schemes. It acts as a bridge for pension scheme members, from the company that currently supports their pension to a long-term insured future. Clara is the only commercial consolidator to have successfully completed The Pensions Regulator’s assessment process.
Clara provides a safer pension promise today by combining its own capital and robust governance with additional contributions from sponsors, who can now transfer the burden of their pension liabilities to Clara. This frees up companies to focus on their future growth.
Clara will provide a managed journey to an insured buyout, giving members the security of a fully insured pension earlier. Only once all members have their full benefits secured will Clara provide a long-term return on capital for investors.
For more information, please visit our website at www.clara-pensions.com