SYPA is responsible for setting out its attitude in relation to the consideration of Environmental, Social and Governance Issues in a range of documents. Additionally, as many of our investments are now managed through the Border to Coast Pensions Partnership, we subscribe to a number of policies which are agreed between the Company and the 11 partner funds. The diagram below shows how these various policies fit together.
Physical Impacts - For example increases in the number of extreme weather events.
Technological Changes - For example the development of new battery storage technologies and hydrogen powered vehicles.
Regulatory and Policy Impacts - For example the introduction of a law to prevent the sale of petrol/diesel powered vehicles.
Transition Risk - For example the risk to a business that its plan for the transition away from carbon is not aligned with the timescale of changes in regulation.
Litigation Risk - For example the risk to a company of losing a legal action in relation to its action or inaction in relation to carbon emissions.
SYPA has recognised for some time that Climate Change represents the biggest long-term risk to the value of its investments and has developed a Climate Change Policy which is available to download. We also undertook Carbon Audits of our investments before they transferred to Border to Coast which you can download, and we now include information reported in line with the Task Force on Climate Related Financial Disclosure (TCFD) standards in our Annual Report.
In 2020 SYPA recognised that it needed to take more substantial action to address the threat which climate change poses to the value of its investment and made a commitment to make its investments Net Zero in terms of carbon emissions by 2030 and our action plan to move us to this is available to download.
Our colleagues at Border to Coast also regard climate change as a serious investment risk. Read their approach to