UNJSPF releases first climate finance disclosure report

Today, the UN Pension Fund released its first report explaining how it addresses the challenges caused by climate change on its investment activities.

The publication of this report follows the recommendations made by the Task Force on Climate-Related Financial Disclosures (TCFD), designed to help companies provide better information to support informed capital allocation.

“The UNJSPF remains committed to adhere to the best practices in the pension fund industry with regard to climate action. With the TCFD report, we want to provide our stakeholders full transparency in the processes, scenarios and metrics that we implement to integrate climate-related risks and opportunities into our investment process”, stated Pedro Guazo, Representative of the Secretary-General for the investment of the UNJSPF assets.

With regard to governance, the report confirms that OIM’s climate-related decision making follows a well-structured channel of oversight. In terms of strategy, the report highlights that OIM recognizes both physical and transitional risks to the value of the assets of UNJSPF and has strategies to reduce these risks by reaching net-zero by 2050 and aligning with the IPCC 1.5°C scenario.  OIM uses in-house methodologies and third parties to identify risks and uses divestment, engagement, and investment in transitioning companies to manage climate risks and take advantage of climate opportunities. OIM uses scopes 1, 2 and 3 emissions metrics to assess risks and has a target to reduce financed emissions by 40% by 2025 from 2019 levels for scopes 1 and 2.