Investment of £250m in environmental resources by LPFA

Local Pensions Partnership Investments (LPPI) Expands Climate-Focused Portfolio

In a strategic move towards sustainable investing, the Local Pensions Partnership Investments (LPPI) has announced plans to invest £250 million in the Funds and Healthcare category. This decision comes as the pension fund manager, which currently manages £27 billion of assets on behalf of Local Pensions Partnership (LPP), continues its commitment to climate action.

The LPP, a company established in 2016 to pool resources from UK local government and public sector pension funds with the aim of improving asset management, recently launched its Environmental Opportunities Fund. Helena Threlfall, the fund's manager, is focused on helping clients invest in an increasing opportunity set of climate investments.

The LPFA, another significant player in the pension landscape, manages £8 billion in assets. Although the LPFA has not yet set a specific target for investment in climate solutions, it plans to allocate around 3% of its total value to environmental solutions assets. The fund has also pledged to be a net-zero fund by 2050, following the Institutional Investors Group on Climate Change's (IIGCC) Net Zero Investment Framework as guidance.

Meanwhile, the LPFA has made a commitment of $5 million to a Ghanaian agritech company, marking another investment in the Agri-food, Funds, and Investment category. This investment aligns with the LPFA's long-standing tradition of investing in private markets.

Elsewhere, August saw the appointment of a head of impact propositions at Unity Trust. The exact nature of this appointment and its impact on Unity Trust's investment strategy remain to be seen.

In the realm of people and updates, the Bridges fund has invested in the UK's Alina Homecare, with the investment category also including Social impact. This transaction underscores the growing trend of socially responsible investing, where financial returns are balanced with social benefits.

As the world grapples with the challenges of climate change, it's clear that pension funds are playing an increasingly important role in driving sustainable investment. The moves by LPPI, the LPFA, and others demonstrate a commitment to protecting their members' pensions while also contributing to a more sustainable future.