Published
22nd July 2021
'On the go: The East Sussex Pension Fund was one of the first Local Government Pension Schemes in the country to carbon footprint its portfolio, and also one of the first to explore and adopt a climate-aware index.'
An article by Sophie Wilcock of the Pensions Expert on the East Sussex Pension Fund's Investment Strategy decision to move away from passive equities such as index funds to achieve it's environmental, social and governance (ESG) ambitions.
The article covers Councillor Gerard Fox's (Chair of East Sussex Pension Fund Committee) speech at the Pensions and Lifetime Savings Associations' Local Authority Conference 2021 where he outlines the move away from index funds and the reason behind this as well as the acquisition of fossil-free global equity fund Storebrand.
In addition, to Councillor Fox's speech, Henrik Wold Nilsen (Senior Portfolio Manager at Storebrand Asset) gives his thoughts on index funds more broadly and how these have, in his view, become less passive with an increase in product choices that are not unique or completely neutral and can cause conflict with a pension funds ESG goals.
ESPF invests £400m in Storebrand:
'Significant move for LGPS scheme to add a green revenue tilted fossil-free fund in its passive portfolio'.
A press release by Storebrand announcing its addition into the East Sussex Pension Fund portfolio. A Fund Manager which has a fossil-free equity strategy that aims for long-term alignment with the Paris Agreement goals. The article discusses Storebrand's aim to increase its client base within the UK and its delight at being awarded its first major UK pension fund mandate.
