Pensions for Purpose was delighted to invite Paris Alignment Forum members to its next online all-stakeholder member-only event on 18 January 2023.

In this session, we discussed the need for pension funds and their members to recognise that the transition to net zero needs to be fair and inclusive to be successful. This session explored how pensions can adopt a just transition approach in their investments, based on insights from the 'Just Transition Finance Challenge', an initiative comprising 20 asset owners and managers owning and managing over £4 trillion in assets.

David Krivanek, Programme Manager, Impact Investing Institute discussed the Just Transition Finance Challenge, why it is needed, and why pension funds should consider joining the challenge. He was joined by Katharina Lindmeier, Senior Responsible Investment Manager, NEST Corporation.

Karen Shackleton of Pensions for Purpose followed the session by moderating Q&As.

We then move to breakout rooms of mixed stakeholders, led by our sponsors Invesco and Redington, to discuss these questions:

• Have you integrated or engaged with the concept of a just transition, for example a fair and inclusive transition to net zero, in your portfolio to date? If not, how could you integrate just transition considerations into your existing climate policies and investment processes?
• What do you see as the main benefits of integrating just transition considerations, which recognise both people and planet, into climate policies and investment processes? Conversely, what are the main challenges in implementing such an approach?
• Which types of investments do you feel already meet the just transition criteria? Please be prepared to share examples. Do you have any feedback for the Impact Investing Institute, on these criteria?

In the usual way, we regroup, and our sponsors shared insights from the breakout room discussions before Karen and David wrapped the session up.

"Investors should want to demonstrate that they're financing a just transition, reassuring members and customers that the social dimension is an important part of aligning portfolios with net zero. We encourage more asset owners and managers to consider adopting the framework, not just for new products but existing funds too." Diandra Soobiah, Head of RI, Nest.

To read a write up of this event click on this link.

Agenda

The programme for this online interactive discussion was the following:

• Welcome from Pensions for Purpose and housekeeping.
• Keynote presentation from David Krivanek and Katharina Lindmeier.
• Mixed breakout rooms moderated by our forum sponsors, Redington and Invesco, to discuss questions.
• Return to main meeting – to share highlights from the discussions.

Speaker biographies

David Krivanek, Programme Manager, Impact Investing Institute

David Krivanek is a Programme Manager at the Impact Investing Institute, a non-profit organisation dedicated to accelerating the growth and improving the effectiveness of the impact investment market in the UK and globally. David leads the Institute's international work, including the 'Just Transition Finance Challenge', a coalition of investors seeking to finance an inclusive transition to net zero.



Katharina Lindmeier, CFA, Senior Responsible Investment Manager, NEST Corporation

Katharina is a Senior Responsible Investment Manager at Nest, leading the pension scheme's approach to managing climate change risks and opportunities within the £25 billion portfolio. She helped develop Nest's climate change strategy and is responsible for evolving the strategy in line with policy developments and the latest available scientific data.

Prior to joining Nest Katharina worked at Railpen and Aberdeen Standard Investments. She holds an MA in Philosophy and Economics from the University of Edinburgh, and an MSc in Economics and Policy of Energy and the Environment from UCL. Katharina is also a CFA charterholder.

Paris Alignment Forum

The Paris Alignment Forum was established by Pensions for Purpose to help pension funds and other asset owners on their journey towards alignment with the goals of the Paris Agreement. We do this by sharing climate-related thought leadership written by our members (asset managers, consultants and lawyers), by running free training workshops for trustees and by engaging in industry-wide conversation through our quarterly all-stakeholder and asset-owner events. To join the Paris Alignment Forum please email Karen Shackleton.