As an international organization, we recognize the urgency of the climate crisis and the need to take bold action to mitigate its impact. In 2020, the Office of Investment Management (OIM) committed to becoming Net-Zero by 2050. To further cement this commitment, we joined the Net-Zero Asset Owner Alliance in 2020.
The UNJSPF’s latest TCFD report (2022) can be found here.
We believe that achieving Net-Zero emissions is not only the responsible thing to do, but also presents an opportunity for us to lead by example and inspire others to act. Find out more about how the UNJSPF is leading the way to Net-Zero.
The Fund’s objective is to identify and invest in companies that are most effectively managing transition risks and are well positioned for the long term. Using a proprietary model, we monitor our current exposure to this theme and identify, within the fossil fuel industry (as quantified by revenues), companies that are already transitioning their business models and that we should still get exposure to.
Access the Fund’s latest TCFD report here.
Coal
In line with the Net-Zero Asset Alliance, we believe that companies should develop transition pathways towards decarbonization. There are two main principles we would like companies to adopt:
To achieve these two goals, the Fund has implemented two pillars: i) exclusions and ii) an engagement strategy.
Divestment from coal mining, applying a threshold of 1% of revenues coming from thermal coal mining
For the mining sector: strategy based on Capital Expenditure (CapEx) consistent with goals of the Paris Agreement, including no new coal mines and ultimate phase out of coal production for unabated use (no carbon capture and storage) consistent with the objectives outlined in the Paris Agreement.
For the utilities sector: plan for cessation of coal-fired power by 2030 in the Organisation for Economic Co-operation and Development (OECD) Member countries and by 2040 in other countries, in line with the Powering Past Coal Alliance (PPCA) goals.
We will engage beyond this timeframe with companies which fail to align with these ambitions.
Oil & Gas
We support the Alliance position on fossil fuels. In particular, for oil and gas, we believe that:
Our Direct Infrastructure Investments are aligned with the Net Zero Asset Owner Alliance position on Oil and Gas.
The Fund has implemented two strategies related to oil & gas:
Divestment from companies with revenues from oil and gas exceeding 10% across the entire value chain (upstream, midstream, and downstream) and including unconventional fossil fuels (shale oil & gas, oil sands production, unconventional drilling techniques).
Despite having divested from the upstream industry, we participate to investor engagement networks, such as Climate Action 100+
We also engage with transitioning companies and companies where revenues fall below our threshold
Finally, we ask financial services companies to align their financing, underwriting and investing activities with the goals of the Paris Agreement and the achievement of net-zero emissions by 2050.