Environmental, social and governance – ESG – is a term that sums up real-world issues that interact with investment decisions and performance. As such, ESG considerations are an important element of our investment approach.
Here, we focus on environmental issues. The UKRF believe there is compelling evidence that sustainable business practices lead to better risk-adjusted returns and outcomes in the long-term. We see environmental issues, such as climate change, as a key financial risk affecting our investment asset portfolio. In the interest of members and aligned with the goals of the Paris Agreement, across the investment portfolio we aim to halve greenhouse gas emissions by 2030 and to be net zero carbon by 2050 or sooner.
Get an at-a-glance flavour of this topic with the snapshot, then read further from our range of articles and case studies below.
You might also be interested in:
Snapshot
Some of the main issues affecting the natural world…
Climate change
Use of water and energy
Waste and pollution
Deforestation
Stranded assets
Remediation
Three key climate change risks the UKRF must manage:
Transition risk: The possibility of short-term losses on investments as businesses and industries adapt to lower carbon emissions.
Physical risk: The potential damage to land, buildings or systems from extreme climate events.
Policy risk: The effects of an uncertain economy worldwide while it is not clear which countries and governments will aim for lower carbon emissions.
Explore this topic
Explore more on this topic using the resources below:
Article
Carbon emissions: a closer look
In earlier Newsroom articles, we’ve introduced the UKRF’s ambition to reach net zero carbon emissions. You can learn more about how emissions are tracked and defined here
Video
Net Zero: our ambition
How we'll reach our ambition to reach 'Net Zero' carbon emissions
Case Study
Octopus Energy Generation
Octopus manages a group of solar energy sites on the UKRF’s behalf.
By bringing together asset managers, ecologists, landowners and local councils, Octopus has guided the creation of new land management programmes on 11 of these sites.
Library
Find our full set of documents about responsible investment on one page, including our Statement of Investment Principles and our Responsible Investment Statement.