Responsible and sustainable investment

We require our investment managers to integrate environmental, social and governance (ESG) issues and real-world impact in investment decision-making.

Our commitment to net zero

We consider return, risk and real-world impact in setting investment objectives.

We’ve committed our investments to net zero greenhouse gas emissions by 2050, with a 50% emissions reduction target by 2030, based on 2019 levels. This informs our investment decisions.

To help meet our net zero commitment, we’ve set a minimum target of 50% of investments with an explicit sustainability or ESG objective – for example, a green bond or a low carbon equity investment.

We’ve invested in green bonds since 2017. Our green bonds, including the UK government’s green gilt, finance a range of sustainability activities, such as low carbon energy and transport.

We’ve also:

  • Invested in low carbon equity, with stewardship. The equity managers exclude the most unsustainable companies and increase our investments in more sustainable companies.
  • Ended our direct commodity exposure to oil and gas replacing with base metals, which are used as part of the low carbon transition.
  • Increased our allocations to environmentally aware cash.

We’ve joined the Institutional Investors Group on Climate Change, that provide expert input into our climate change measurement and actions.

Find out more about our approach to responsible and sustainable investment in our Statement of Investment Principles (SIP).

Task Force on Climate-Related Financial Disclosures (TCFD) report

We published our first TCFD report in 2022. It sets out metrics, scenarios and targets that help us manage climate change-related risks and opportunities, and meet our commitment to net zero greenhouse gas emissions by 2050.​

Read report

Our sustainability topics

Our priority sustainability topics are:

  • Climate action
  • Gender equality
  • Living wages

We have a track record of working on sustainability topics through our work on the gender pensions gap.

Read more about our priority sustainability topics


Stewardship is an important part of our strategy.

Stewardship is the “responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society.”

Our investment manager, Cardano, has partnered with Sustainalytics to enhance stewardship across our investment portfolios, engaging a number of companies on our priority themes.

We also respond to public policy consultations where we believe policy and regulation can advance our sustainability objectives. We’re a member of the Occupational Pensions Stewardship Council, where we work with other UK pension funds on a range of topics, including sustainability.

Read the Stewardship policy.