United Nations Pension Fund exceeds its 2021 carbon reduction target

The United Nations Joint Staff Pension Fund (UNJSPF) has just met its 2021 carbon reduction objectives, ahead of time and above its target.

In June 2021, the Fund announced[1] its ambition to reduce the absolute Greenhouse Gas (GHG) footprint of its public markets’ portfolio (equities and corporate bonds) by 29 per cent by 31 December 2021, compared to the 2019 level. Early October, the Fund already achieved a 32 per cent reduction compared to the 2019 level, exceeding by 3 percentage points its objective.

By 2025, the Fund has committed to reduce the carbon footprint of its investments by 40 per cent compared to the 2019 level.

We are aware of the climate urgency and we have already framed our investment policy and practice with ambitious targets. We want to meet them and exceed them. By doing so, we act in the best interest of the Fund’s participants, beneficiaries and retirees, as well as the planet.” said Pedro Guazo, Representative of the Secretary-General (RSG) for the investment of the assets of the UNJSPF.

Mr. Guazo also explained that the Fund is looking closely at international developments on climate action and has a special responsibility as part of the UN family and a leading global pension fund.

Reacting to the last report from the United Nations Framework Convention on Climate Change published in September 2021, The UN Secretary-General stated that “The fight against climate change will only succeed if everyone comes together to promote more ambition, more cooperation and more credibility.”[2]

The UNJSPF provides retirement, death, disability and related benefits to over 215,000 staff, retirees and beneficiaries from the United Nations system organizations. The mission of the Fund’s Office of Investment Management is to contribute to the global mission of the United Nations by ensuring the long-term financial sustainability of the United Nations Joint Staff Pension Fund. The Office is responsible for the investment management activities of the Fund, overseeing over $87 billion of assets (value in September 2021). The fiduciary duty to manage the assets of the Fund in the best long-term interest of its participants and beneficiaries encompasses a strong commitment to sustainable investing.

 

[1] https://www.unjspf.org/the-united-nations-joint-staff-pension-fund-steps-up-its-climate-action-with-new-ambitious-targets/

[2] https://www.un.org/sg/en/node/259358

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