Pensions & benefits

Climate change, ESG and sustainable investment

We incorporate climate change and sustainability considerations into our advice across investment, funding and covenant, helping you to manage risks and improve outcomes.

It is common sense to promote strong real-world environmental, social and governance (ESG) practices – events in the real world impact you, and your decisions impact your members and the wider world.

We use our scale and influence to make our clients’ voices heard, by engaging with fund managers, insurers and policymakers to tackle systemic risks that no single investor can manage alone.

To help amplify our voice, we have developed a headline set of “climate policy asks” to guide our influencing work in this area.

Climate change poses a material financial risk. Not only are there physical risks, but it could be increasingly priced into financial markets. This would affect the outcome of your decisions on funding, investment and covenant – and the experience of your members for years to come.

We will help you assess risk in each of these areas and identify clear actions:

We encourage our clients to align their investment strategy with net zero emissions by 2050.
We provide clear and practical recommendations to help you monitor and achieve this – our technology includes climate dashboards to help you understand your carbon exposure in an accessible way.
We help our clients understand the potential impact of climate risks on their journey plan through a combination of training, scenario analysis and narrative.

We will also help you to capture long-term opportunities, for example, by identifying investments that are well placed to deliver strong returns and drive the global transition to a low carbon economy. We are unique in being able to harness the expertise and insights of our specialist energy team LCP Delta, who are at the heart of the energy transition, so you can tap into this megatrend in an intelligent way.

Our approach has led to the development of LCP Transform – where we help our clients with the journey from understanding what the energy transition is, to how to get invested and set an investment strategy that can benefit from this megatrend.

We will also help you manage a broader range of ESG risks, whether that’s engaging your existing investment managers, selecting new managers or assessing potential insurers as part of a transaction.