The PPF has published its third Climate Change Report, disclosing the climate-related risks and opportunities in its investment approach, with an aim to build understanding of the impact climate change has on the Fund.
The PPF has gathered climate assessments across every investment in the Fund in order to assess its alignment with the Paris Agreement and net zero. The report was produced to progress transparency of climate-related financial information, including reporting the risks and opportunities presented by rising temperatures, climate-related policy and emerging technologies in the changing world.
The report reveals that 11 per cent of the Fund is now allocated to investments categorised as “Aligned” with net-zero, which is an increase from four per cent in the 2020 baseline assessment. In addition, the percentage of Equities portfolio allocated to companies who have set or committed to a science-based target increased by a third to 43 per cent from 2021.
PPF Head of ESG and Sustainability Claire Curtin said: “We have set ourselves high standards on climate change and responsible investment. Our target is to reach net-zero for our operations by 2035 or sooner. For our investments, we seek to contribute to the global transition to net-zero through our portfolio and engagement activities. In the past two years, we’ve gathered climate assessments across every investment in the Fund so we can see how the Fund’s position aligns to net-zero and the Paris Agreement. We’ve continually evolved this to reflect new methodologies for different asset classes and changes in our portfolios."