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UN Pension Fund sets example on commitment to sustainability disclosure

23 February 2024

Pedro Guazo, Representative of the Secretary-General for the investment of the UNJSPF assets, shared the UN Pension Fund’s strategy to reach net-zero by 2050 and the Fund’s overall sustainability approach at the International Financial Reporting Standards (IFRS) Sustainability Alliance Workshop held at Fordham University in New York City.

This member-only event focused on use cases of sustainability disclosure and decarbonisation. The UN Pension Fund is a member of the Investment Advisory Group of the IFRS and the International Sustainability Standards Board (ISSB).

Opening the panel discussion, Mr. Guazo highlighted three main pillars of the UN Pension Fund’s sustainable investment strategy: “We integrate ESG issues in all our asset classes; regardless of whether these are managed internally or externally. We have a strict list of exclusions and we focus on engagement and stewardship,” he said. “In 2021, we divested around USD 2 billion from fossil fuels. As a result, we have decreased the carbon emissions of our portfolio by 40 per cent,” Mr. Guazo added.

During the panel workshop, members of the IFRS shared the different target and goals to achieve net-zero and the various measures being implemented across their sectors. Panel participants also exchanged their experiences on materiality and disclosure, the value of nuance and context of the data. They also stressed that investors should not be afraid to make use of the data, albeit imperfect at times.

Mr. Guazo shared that the UN Pension Fund is part of the ISSB to improve sustainability disclosure. With the goal of setting an example for other asset owners and reporting entities, the UN Pension Fund will “report under IFRS S1 and S2; two standards for general and climate sustainability-related disclosures,” he stated.

The panel concluded with a reflection on the importance of thought leadership and the effect that it may have on other investors to incorporate sustainability factors as part of the investment management strategy.

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