04 August 2021 | London
Creative Pension Trust has announced its programme to achieve Net Zero status on carbon emissions for all member investments under management by 2050 with an interim target of 50% reduction by 2030.
The Board of Trustees has agreed its ZeroByFifty and FiftyByThirty initiatives following the commitments that have been given by the scheme’s underlying investment fund managers. The Trustees will publish annual reports on these commitments starting in 2022.
Speaking of the new commitments, Chair of Trustees for Creative Pension Trust, Roger Mattingly, said:
”The Trustees believe climate change is the most significant financially-material ESG issue for Creative Pension Trust and its members, particularly in the medium-to-long term. We believe the biggest risks linked to climate change are the longer-term Physical Risk, such as rising sea levels and extreme weather conditions, and also Transition Risk, where firms face real challenges to reduce their emissions. In order to mitigate that risk, the Trustees support the goals of the Paris Agreement to limit the global temperature rise to 1.5oC above pre-industrial levels by 2050.
David White, Managing Director of Creative, sponsor of Creative Pension Trust, said;
”Creative Pension Trust is the fifth largest master trust in the UK by number of participating employers, so it is vital that they and their employees who save with us can clearly see that we take climate change very seriously and are committed to making a difference.
While the Trustees anticipate Transition Risks in achieving these goals, including economic costs and a material impact on investment markets, their current scenario analysis has concluded that these are expected to carry a lower overall financial impact than the Physical Risks that may emerge from global temperature increases.
In line with UK Government proposals for Master Trust pension schemes, the Trustees expect to manage climate change risks and opportunities in relation to the scheme’s investments according to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations from 1 October 2021 and publish annual reports starting in 2022.
About Creative Pension Trust
Creative Pension Trust is a leading UK workplace pension provider chosen by some 15,000 employers throughout the UK to provide their employees with a low cost, consumer friendly way to save for retirement.
The multi-employer Master Trust pension scheme offers an auto enrolment pension with a unique auto enrolment compliance guarantee to new and small businesses and a sophisticated workplace pension focused on enhancing financial education and long term financial wellbeing to SME and large national employers.
Creative Pension Trust is sponsored by Creative, a privately owned employee benefits consultant, chartered financial planner and financial product provider. Established in 2007 and based in Croydon, Greater London, Creative specialises in the provision of auto enrolment pensions, employee benefits, wealth management and workplace pensions for individuals, organisations and their employees.