Introduction
Responsible Investment makes business sense.
For over 20 years we have seen that our Fund generates strong financial returns by investing in companies that contribute to the long term sustainable success of the economy and society.
Our approach is about having vision, using science and being honest about our progress.
Our Responsible Investment Strategy Statement sets out the Fund’s beliefs, strategy and targets for investing the assets of the Environment Agency Pension Fund, in line with the best long-term interests of our members.
The majority of our assets are now invested through Brunel Pension Partnership. Brunel provide the investment vehicles to enable us to meet our investment strategy in line with the Strategic Asset Allocation EAPF has agreed. If the right vehicle is not available within the pool, we may invest elsewhere.
It is important that we provide clear guidance to asset managers on what we expect so that we can work with our partners in Brunel and others to develop the solutions we need.
This document provides the detail on how we will meet our Responsible Investment Strategy and sets out what we expect from our asset managers.
Achieving the Right Balance
We have 3 key priorities:
Investing in solutions which build a clean, biodiverse and climate-resilient future
Reach net zero by 2045
Engage on nature, climate change adaptation and sustainable use of resources
All 3 are important. They may have different timescales and outcomes but all 3 will contribute to managing our long-term financial risks and delivering the clean, biodiverse and climate-resilient future we need.
So our approach is not just about decarbonising at all cost. It is also about investing in solutions and being a positive voice for change, especially in hard-to-abate industries. No matter how sustainable our investments are, we cannot insulate our returns from a wider economy which is contributing to climate change. Only by getting the balance correct and showing the environmental and financial benefits so that the wider market seeks the same low carbon, nature positive outcomes, will we have a chance of protecting our investments for the long term.
