1. Climate Risk Faith Ward Environment Agency Pension Fund LAPFF 5 December 2013

2. Life before stranded assets  Policy commitments to address climate risk in FSS, SIP and Responsible Investment strategy  Founder member of IIGCC  Integration of climate change risk into strategic asset allocation  ESG risk built into manger selection & monitoring  Environmental and carbon foot printing of active listed mandates  Allocations to climate sensitive infrastructure, real estate, agricultural land, timberland and sustainable assets.

3. Where did that get us? Carbon footprint of active equities 26% less than the MSCI AW

4. Where did that get us?  Carbon footprint of active UK bonds 30% more efficient than the IBOXX  £250 invested clean technology investment  Investments in unlisted real estate and sustainable infrastructure Threadneedle Low Carbon Workplace Fund - £15m invested by EAPF  Research reports with our fund Managers  Supported research and advocacy by IIGCC  Supported other funds in developing strategies

5. Carbon tracker Being relatively good is not enough !

6. The Green Light Report Asks of Pension Funds Policy & training on carbon risk Evaluate carbon risks in portfolio Challenge capital allocation of underlying hydrocarbon companies. Work collaboratively Look to low carbon alternatives

7. What next?  Refresh committee members training on carbon risk  Review policy and strategies  Improve communications to members on what we have already done and our plans going forward.  Dig deeper into the funds exposure to fossil fuels

8. Digging deeper  Evidence base  Lack of robust data to establish risk ACTION NEEDED  Engage collaboratively with the legislature and reporting bodies to improve publicly available fossil fuel reserve data.  Challenge company CAPEX plans and support transition  Constructive dialogue – disinvestment not a progressive solution  Raise awareness and work with others

9. Questions and Answers More information on our website www.eapf.org.uk