Parliamentary Pension Fund Investments

Thank you for contacting me about the Parliamentary Contributory Pension Fund (PCPF) and climate change.

The PCPF is managed by its Trustees who have an important duty to act in the best interests of the beneficiaries of the scheme.  The Trustees are also required to adhere to their Statement of Investment Principles, which outlines the PCPF approach to responsible investment.  This includes encouraging engagement by its investment managers with investee companies on ESG issues to positively influence company behaviour.  The Trustees also monitor the investment managers’ track record of engaging with companies on issues such as climate change risk, fossil fuels and broader ESG issues on an ongoing basis.

I am pleased that the Trustees have published a carbon footprint report for 2017 on their website, which found that the portfolio’s current share of renewable power generation is in line with the 2025 IEA World 2-degree scenario. This report can be viewed at:

https://www.mypcpfpension.co.uk/docs/librariesprovider12/investments/carbon-footprint-disclosure-as-at-31-march-2017.pdf?sfvrsn=4

While any changes related to divestment would not be a decision for the Government, I understand the Trustees have been engaged in detailed correspondence with MPs over investment strategy and beliefs. Following these conversations, the Trustees are now actively reconsidering the funding guidelines to recognise the risks from climate change, and will be updating their Statement of Investment Principles later in the year.  They have also committed to asking their advisers to prepare a climate change policy and have been clear that they wish to show real ambition in this area.

Thank you again for taking the time to contact me.

Craig Whittaker MP

June 2019