THE committee overseeing the Shropshire County Pension Fund has been recommended to commit to a net-zero approach to pension investments in a report to be discussed.

The Pensions Committee of Shropshire County Pension Fund will on Monday, January 17, to discuss a report which recommends they commit to net-zero approach in their investments.

The Committee hope to contribute to the tackling of climate change by committing to reach net-zero by 2050.

To reduce carbon emissions, the Fund wants to commit £130 million from its equity allocation to a sustainable equities fund by investing in a low carbon net-zero passive fund.

In July 2020, Shropshire Council asked the Pension Fund, which is made up of members from Telford & Wrekin plus other non-voting members, to move from investing in fossil fuel dependent industries to ‘internationally recognised sustainable development goals and investment in a local sustainable economy.’

However, moving to net-zero will not happen instantly.

The report said: “Exerting pressure from within as a shareholder on companies involved in fossil fuels to move to zero carbon alternatives would have greater impact than simply withdrawing the Fund’s investments from these companies.

“A greater impact on climate change could be had by the Fund making the commitment to be net zero carbon by 2050, setting carbon reduction targets in the meantime, and supporting climate stewardship activities.”