Devon County Council Pension Fund
Portfolio level – Portfolio decarbonisation reference target
Baseline date: 31 March 2019
Baseline performance: 423 tC02e/mGBP invested (Weighted Average Carbon Intensity)
Target year(s): 2030, 2050
- Minimum 7% per annum reduction.
- 50-75% reduction by 2030.
- Net zero by 2050.
GHG scopes included:
21% by 2022 from 2019
- The 2022 target is minimum of 7%+ per annum reduction (linear reduction equating to 21%+) of carbon equivalent emissions for all listed equity portfolios. This target includes scope 1,2 and first tier scope 3.
50%+ by 2030 from 2019
- The 2030 target is a minimum 50% reduction (based on a 7%+ per annum reduction (geometric progression) of carbon equivalent emissions for all listed equity and corporate bond portfolios. This target includes scope 1 and 2.
- We will look to set specific scope 3 emission targets in due course. We will continue report on first tier scope 3 as part standard reporting.
Asset classes in scope: Listed equity, as baseline data only included listed equity data, but will look to add other asset classes.
Net zero scenarios: The UNEP Gap Report (2019) states that global GHG emissions need to fall by 7.6% annually between 2020-2030 to remain in line with a 1.5°C scenario. The methodology for the UNEP Gap report scenarios is outline in section 3 of the 2019 report. The estimate as to the 2030 emissions are consistent with a least-cost pathway towards limiting global warming to specific temperature limits are calculated from the scenarios that were compiled as part of the mitigation pathway assessment of the Intergovernmental Panel on Climate Change Special Report on Global Warming of 1.5°C (IPCC SR1.5) (Rogelj et al. 2018). The IPCC pathways are synthesis of number of scenarios summarised as P1: a low energy demand scenario P2: a sustainability orientated scenario P3: a middle of-the-road scenario.
Portfolio level – Investment in climate solutions target
Baseline date: 31 March 2019
Baseline performance: Not quantified
Target year: 2025
Target: 5% of total fund AUM invested in renewable energy infrastructure
Asset level – Portfolio coverage target
Baseline: The collective engagement baseline across the whole Brunel Pension Partnership is 47.3% of financed emissions.
Target: Targets will be set in January 2023 following review of climate change policy working in partnership with Brunel during 2022.
Asset level – Engagement threshold target
Baseline: 31 December 2019
Target: The near-term target set in the NZIF is 70% increasing to 90%. We anticipate that these will be our targets.
Further work: As detailed above.
Fossil fuel investment: Policy on coal and other fossil fuel investment is embedded in the index products launched by Brunel that the Devon Fund is invested in. Adoption into wider policy is underway and forms part of the climate policy 2023 development.
Operational emissions: Devon County Council has committed to reduce the carbon emissions from its operations to net-zero by 2030. This will include the operational emissions of the Devon County Council Investment Team in the oversight of the Pension Fund’s investments, and the administration of benefits by Peninsula Pensions.