The South Yorkshire Pensions Authority (SYPA) has committed £525m (€601m) to climate and impact strategies as part of its goal of being a net-zero pension fund by 2030.
SYPA announced it has expanded its climate commitments with a £350m commitment to the Border to Coast Climate Opportunities Fund and a further £175m towards renewables and natural capital investments, its 2025 annual report.
“The last year has seen the Local Government Pension Scheme (LGPS) receive significantly more attention than has been customary, with the focus largely being on the scheme’s ability to support growth across the UK economy,” said councillor Jayne Dunn, SYPA’s chair.
According to the report, the Authority has continued to develop its place-based impact strategy with the launch of two £20m funds focused on investing in small and medium-sized companies in South Yorkshire.
“The authority recognises that climate change poses a systemic and possibly the greatest external risk to the value of the authority’s investment portfolio. The risks and opportunities associated with climate change may have a material impact across all asset classes,” the report stated.
Net zero targets
The Authority has set a goal to make its investment portfolios net zero by 2030. Currently, financed emissions in its equity and investment-grade credit portfolios have already fallen 59% from 2019 levels, exceeding the 52% target for 2025. These portfolios represent half of SYPA’s total assets.
The fund added that while full net zero by 2030 may be challenging, current projections suggest a 65% emissions cut by 2030, which exceeds the Paris Agreement’s 43% pathway.
“While the Authority would wish to see these portfolios achieve net zero by 2030, this is not something that is entirely within our gift; given our dependence on Border to Coast for the provision of investment products, and the fact that the broader partnership goal is set as 2050,” according to the report.
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