Why is your pension fund so obsessed with net zero?
Legal & General is Britain's largest asset manager, with over £1 trillion on its books. Every pound it manages should be dedicated to achieving the highest possible returns. This matters a lot: L&G manages over five million pensions in the UK.
But in recent years, the asset manager has been particularly concerned with fashionable causes, instead of being entirely focused on making sure your retirement is secure.
That is why I recently attended their AGM. I wanted to learn why the board is wedded to net zero, despite their fiduciary duty to clients, and whether they would consider reprioritising saver returns instead.
At the Q&A I highlighted that US competitors have dropped their net zero ambitions. Most have pulled out of the 'Net Zero Asset Owner Alliance' – a UN-led consortium of asset managers 'committed to decarbonising their investment portfolios and achieving net-zero emissions by 2050.'
L&G – along with most other British pension fund managers – is still a part of this alliance. But their commitment to decarbonising their portfolios and advocating for 'public policies, for a low-carbon transition' are premised on a net zero consensus that no longer exists.
At the moment, roughly half of the public support either Reform or the Conservatives. Both parties oppose net zero by 2050. It is therefore reasonable to assume, as I told the board, that many with L&G pensions, do not want their retirement outcomes subordinated to the green agenda.
In response, the board told me that its clients want to align with net zero by 2050. Whilst the board acknowledged that complex trade-offs exist, they did not explain what these were. Instead they doubled down, reaffirming their net zero commitment, before asserting that decarbonisation offers stellar investment opportunities.
The problem is that these opportunities rely on government subsidy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
an hour ago
- The Independent
As the UN turns 80, its crucial humanitarian aid work faces a clouded future
At a refugee camp in northern Kenya, Aujene Cimanimpaye waits as a hot lunch of lentils and sorghum is ladled out for her and her nine children — all born while she has received United Nations assistance since fleeing her violence-wracked home in Congo in 2007. 'We cannot go back home because people are still being killed,' the 41-year-old said at the Kakuma camp, where the U.N. World Food Program and U.N. refugee agency help support more than 300,000 refugees. Her family moved from Nakivale Refugee Settlement in neighboring Uganda three years ago to Kenya, now home to more than a million refugees from dozens of conflict-hit east African countries. A few kilometers (miles) away at the Kalobeyei Refugee Settlement, fellow Congolese refugee Bahati Musaba, a mother of five, said that since 2016, 'U.N. agencies have supported my children's education — we get food and water and even medicine,' as well as cash support from WFP to buy food and other basics. This year, those cash transfers — and many other U.N. aid activities — have stopped, threatening to upend or jeopardize millions of lives. As the U.N. marks its 80th anniversary this month, its humanitarian agencies are facing one of the greatest crises in their history: The biggest funder — the United States — under the Trump administration and other Western donors have slashed international aid spending. Some want to use the money to build up national defense. Some U.N. agencies are increasingly pointing fingers at one another as they battle over a shrinking pool of funding, said a diplomat from a top donor country who spoke on condition of anonymity to comment freely about the funding crisis faced by some U.N. agencies. Such pressures, humanitarian groups say, diminish the pivotal role of the U.N. and its partners in efforts to save millions of lives — by providing tents, food and water to people fleeing unrest in places like Myanmar, Sudan, Syria and Venezuela, or helping stamp out smallpox decades ago. 'It's the most abrupt upheaval of humanitarian work in the U.N. in my 40 years as a humanitarian worker, by far,' said Jan Egeland, a former U.N. humanitarian aid chief who now heads the Norwegian Refugee Council. 'And it will make the gap between exploding needs and contributions to aid work even bigger.' 'Brutal' cuts to humanitarian aid programs U.N. Secretary-General Antonio Guterres has asked the heads of U.N. agencies to find ways to cut 20% of their staffs, and his office in New York has floated sweeping ideas about reform that could vastly reshape the way the United Nations doles out aid. Humanitarian workers often face dangers and go where many others don't — to slums to collect data on emerging viruses or drought-stricken areas to deliver water. The U.N. says 2024 was the deadliest year for humanitarian personnel on record, mainly due to the war in Gaza. In February, it suspended aid operations in the stronghold of Yemen's Houthi rebels, who have detained dozens of U.N. and other aid workers. Proponents say U.N. aid operations have helped millions around the world affected by poverty, illness, conflict, hunger and other troubles. Critics insist many operations have become bloated, replete with bureaucratic perks and a lack of accountability, and are too distant from in-the-field needs. They say postcolonial Western donations have fostered dependency and corruption, which stifles the ability of countries to develop on their own, while often U.N.-backed aid programs that should be time-specific instead linger for many years with no end in sight. In the case of the Nobel Peace Prize-winning WFP and the U.N.'s refugee and migration agencies, the U.S. has represented at least 40% of their total budgets, and Trump administration cuts to roughly $60 billion in U.S. foreign assistance have hit hard. Each U.N. agency has been cutting thousands of jobs and revising aid spending. 'It's too brutal what has happened,' said Egeland, alluding to cuts that have jolted the global aid community. 'However, it has forced us to make priorities ... what I hope is that we will be able to shift more of our resources to the front lines of humanity and have less people sitting in offices talking about the problem.' With the U.N. Security Council's divisions over wars in Ukraine and the Middle East hindering its ability to prevent or end conflict in recent years, humanitarian efforts to vaccinate children against polio or shelter and feed refugees have been a bright spot of U.N. activity. That's dimming now. Not just funding cuts cloud the future of UN humanitarian work Aside from the cuts and dangers faced by humanitarian workers, political conflict has at times overshadowed or impeded their work. UNRWA, the aid agency for Palestinian refugees, has delivered an array of services to millions — food, education, jobs and much more — in Lebanon, Syria and Jordan as well as in the West Bank and Gaza since its founding in 1948. Israel claims the agency's schools fan antisemitic and anti-Israel sentiment, which the agency denies. Israel says Hamas siphons off U.N. aid in Gaza to profit from it, while U.N. officials insist most aid gets delivered directly to the needy. 'UNRWA is like one of the foundations of your home. If you remove it, everything falls apart,' said Issa Haj Hassan, 38, after a checkup at a small clinic at the Mar Elias Palestinian refugee camp in Beirut. UNRWA covers his diabetes and blood pressure medication, as well as his wife's heart medicine. The United States, Israel's top ally, has stopped contributing to UNRWA; it once provided a third of its funding. Earlier this year, Israel banned the aid group, which has strived to continue its work nonetheless. Ibtisam Salem, a single mother of five in her 50s who shares a small one-room apartment in Beirut with relatives who sleep on the floor, said: 'If it wasn't for UNRWA we would die of starvation. ... They helped build my home, and they give me health care. My children went to their schools.' Especially when it comes to food and hunger, needs worldwide are growing even as funding to address them shrinks. 'This year, we have estimated around 343 million acutely food insecure people,' said Carl Skau, WFP deputy executive director. 'It's a threefold increase if we compare four years ago. And this year, our funding is dropping 40%. So obviously that's an equation that doesn't come together easily.' Billing itself as the world's largest humanitarian organization, WFP has announced plans to cut about a quarter of its 22,000 staff. The aid landscape is shifting One question is how the United Nations remains relevant as an aid provider when global cooperation is on the outs, and national self-interest and self-defense are on the upswing. The United Nations is not alone: Many of its aid partners are feeling the pinch. Groups like GAVI, which tries to ensure fair distribution of vaccines around the world, and the Global Fund, which spends billions each year to help battle HIV, tuberculosis and malaria, have been hit by Trump administration cuts to the U.S. Agency for International Development. Some private-sector, government-backed groups also are cropping up, including the divisive Gaza Humanitarian Foundation, which has been providing some food to Palestinians. But violence has erupted as crowds try to reach the distribution sites. No private-sector donor or well-heeled country — China and oil-rich Gulf states are often mentioned by aid groups — have filled the significant gaps from shrinking U.S. and other Western spending. The future of U.N. aid, experts say, will rest where it belongs — with the world body's 193 member countries. 'We need to take that debate back into our countries, into our capitals, because it is there that you either empower the U.N. to act and succeed — or you paralyze it,' said Achim Steiner, administrator of the U.N. Development Program. ___
NBC News
2 hours ago
- NBC News
Israel-Iran conflict: Fresh attacks as Trump sets two-week deadline for U.S. action
What we know NEW WAVE OF STRIKES: Israel and Iran continued to exchange strikes today, a week into their war. Israel's military said it targeted areas in western Iran, while a building was hit in the southern Israeli city of Beersheba. EUROPE-IRAN TALKS: Iranian Foreign MinisterAbbas Araghchi will be in the Swiss city of Geneva today for talks with his British, French, German and E.U. counterparts in an effort to end the conflict. The U.S. envoy to the Middle East, Steve Witkoff, will not attend. TRUMP CONSIDERS U.S. ACTION: President Donald Trump said he was still considering a U.S. military strike on Iran's nuclear sites. 'I will make my decision whether or not to go within the next two weeks,' he said yesterday, according to the White House. HUNDREDS KILLED: Israeli strikes have killed at least 639 people in Iran since the conflict began a week ago, The Associated Press reported, citing a Washington-based human rights group. The Iranian health ministry says more than 2,500 people have been wounded. The death toll in Israel from Iran's retaliatory strikes remains at 24.
The Herald Scotland
2 hours ago
- The Herald Scotland
Vance travels to LA to meet Marines deployed against protesters
A brief issued Friday by the vice president's office said he will tour a multi-agency Federal Joint Operations Center and a Federal Mobile Command Center in Los Angeles. Vance, a former Marine, is scheduled to meet with leadership and Marines and deliver brief remarks. Protests against ICE raids erupted in Los Angeles in early June. Nationwide "No Kings" protests against Trump's aggressive expansion of executive power occurred on June 14 in cities across the country A small minority of protesters in Los Angeles violently attacked federal law enforcement, and President Donald Trump responded by deploying the California National Guard, despite objections by Gov. Gavin Newsom. The Democrat-led city is home to millions of immigrants and is a melting pot of Latino, Asian and other cultures. More: Trump using National Guard for deportation work could go into 'uncharted territory' Some 4.2 million people, or nearly a third of the 13 million residents of greater Los Angeles, are foreign-born, according to a Migration Policy Institute analysis of U.S. Census data.
