Search site
»
  • Climate Change

Climate Change

What is the Fund's stance on climate change?

Climate change, and the risks and opportunities it presents to us as long-term investors form part of our critical thinking not just in the way we approach investment, but in the Fund's wider objectives and delivery themes which aim for global influence alongside delivering for local people.

The Fund recognises the need for action to address climate change on a global scale and that it has a role to play in ensuring transition to a lower carbon economy, but also that it will take action on the part of governments, companies, investors and individuals to ensure the long-term sustainability of our planet. We believe that the Fund by its actions and in collaboration with others, can and will contribute to change, at the same time as meeting its primary aim of managing the financial risk inherent in investments, to support in meeting the funding objectives and pension promises made to Fund members.

The Fund acknowledges that this remains a fast evolving space and believes it appropriate to set shorter-term objectives in its Climate Framework & Strategy as well as more progressive longer-term ambitions.

Climate Related Financial Disclosure 

As a supporter of the Task Force for Climate-related Financial Disclosure recommendations, since they were first published in 2017, the Fund has published climate-related financial disclosure against the TCFD recommendations in its Annual Report & Accounts. 

For the first time the Fund has published a separate stand-alone pdf icon Climate Related Financial Disclosure 2020 [3Mb] to further enhance transparency and disclosure around our approach to climate risk management. The Fund is also very pleased to announce that its 2020 TCFD report was used as an pdf icon Asset Owner TCFD case study example [185kb] at the Accounting for Sustainability conference in December 2020. 

The Fund's response to climate change is embedded within the Investment Strategy and Investment Strategy Statement and is supported by our Climate Change Framework and Strategy and wider Responsible Investment Framework.

What is the Fund's stance on the issue of divestment from carbon-intensive stocks and Oil and Gas companies?

At the present time, the Fund does not believe that divesting its investments from carbon-intensive stocks would be in the best interests of our members. This is a position that the Fund continues to re-evaluate as the market dynamic changes. The Fund believes that there is a chance of re-pricing of oil and gas assets but remain unsure as to the exact timing and quantum.  In the short to medium term, the Fund favours intensive and robust engagement, where we believe there is opportunity to add value to the portfolio over the short to medium term by working with the companies (and indirectly through our fund managers) to help them reshape their business models.

The Fund recognises the risks associated with climate change and the potential for these to impact on the long-term value of the Fund investments, but also the opportunity for investment reward, for example in renewable infrastructure investments, particularly during the period of transition to a lower carbon economy. The Fund is very aware of the scientific evidence around climate change and takes this into account when making investment decisions across all asset classes, as detailed in our

Collaboration and Engagement

The Fund supports and utilises a variety of strategic partnerships to continue to inform and develop its approach to the consideration of climate-related risks and opportunities, including: pdf icon WMPF Climate Risk Position Statement (March 2021) [166kb].

Archived Items 

pdf icon Climate Change Statement 2020 [53kb].

 

Powered by GOSS iCM