Saturday, 7 July 2007

Local government pension funds challenge Government's climate change targets

From the Professional Pensions website -

LAPFF urges government to toughen climate change rules
by Jonathan Stapleton 06-07-2007

GOVERNMENT should adopt more rigorous targets than those set out in the draft Climate Change Bill, the Local Authority Pension Fund Forum urges

The group of 40 council schemes, which together hold assets of around £75bn, said the proposed legislation calls for at least a 60pc cut in carbon emissions by 2050 – but called for a target of at least 80pc to be set.

It explained that the 60pc level did not reflect the current consensus – which includes the views of the House of Commons select committee on environmental audit and the Stern review.

The LAPFF also said the government should use the Bill to make corporate reporting on greenhouse gas emissions mandatory.

LAPFF chairman Darrell Pulk said: “The time for discussion about possible effects of climate change has passed. Companies should now have in place risk management procedures as part of their business strategies as well as identifying relevant business opportunities.

“They must then follow through with this and report on these to their investors in their operating and financial or business reviews. They will further need to demonstrate to their shareholders that the business is well placed to produce cuts that will be required as a result of climate change legislation.”

This follows an ongoing engagement programme by the LAPFF – action which has led to several FTSE100 firms starting to report emissions.

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