Why is your pension fund so obsessed with net zero?
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
Telegraph
16 minutes ago
- Telegraph
Scottish Tories eye Reform electoral pact
Senior Scottish Conservatives have discussed striking an electoral pact with Reform UK for the Holyrood elections next spring. One figure backing a deal told The Telegraph it could help avoid splitting the vote on the Right and kick the SNP out of power in Scotland. The deal, which would not need to be made public, would see the Tories either not stand candidates or go easy in areas where Reform is better placed to win and vice versa. It comes as Nigel Farage 's party sits above the Conservatives in third place in opinion polls for the Scottish Parliament elections next May. A pact does not have the backing of Russell Findlay, the Scottish Tory leader, whose team released a statement ruling out the possibility when approached by The Telegraph. But the fact a deal is being considered at senior levels in the party underscores the scale of Reform's popularity surge north of the border and the concerns it has triggered among Tories. In Scotland, Reform now has 15 councillors, 14 of whom used to be Conservatives. It is in marked contrast to other political parties previously run by Mr Farage, such as the UK Independence Party (Ukip), which struggled to get a foothold north of border. One Tory MSP has privately spoken of a defection 'watch list' in Holyrood of those suspected of switching to Reform. Mr Farage also waved away the idea he would agree to any such pact, telling The Telegraph: 'No chance. The Tories are dying in Scotland and I've got no desire to do a deal with them whatsoever.' The idea of some form of agreement, public or private, between the Conservatives and Reform has become a common discussion point in Westminster. Average UK-wide voting polls have Reform in first place on 30 per cent of the vote, with the Tories in a distant third on 17 per cent. Labour is in second place on 22 per cent. Kemi Badenoch, the Conservative leader, has ruled out a pre-vote deal with Mr Farage, but speculation continues with the next general election not due until 2029. The recent by-election result for the Scottish Parliament seat of Hamilton, Larkhall and Stonehouse underscored the challenges of Right-wing parties splitting the vote. Labour won the seat with 32 per cent of the vote, followed by the SNP on 29 per cent. Reform came third on 26 per cent. Had the Tories, who got 6 per cent, not stood a candidate, it is possible Reform would have beaten Labour and taken the seat, though pollsters often caution against hard conclusions when predicting voter behaviour. Mr Farage has agreed to election pacts before. The Brexit Party, the precursor to Reform which Mr Farage led, had criticism of the Tory handling of the issue of Europe as its heart. Yet he still agreed not to stand candidates against sitting Conservatives at the 2019 general election to help Boris Johnson win and get a Brexit deal through the Commons, securing the UK's departure from the European Union. Despite interest in some quarters of the Scottish Conservative Party, other figures strongly played down the possibility of a pact. One Scottish Tory politician who has spent years in influential positions said: 'Churchill's phrase comes to mind, 'You don't negotiate with a tiger when your head's in its mouth'. We're in competition with Reform – we're not in partnership with them.' The source said Scottish Tory supporters had brought up the prospect of a deal with Reform but that there was little chance it would be adopted by the leadership. Another senior Scottish Tory said: 'Why would Reform do a deal? I can see why we might be interested in it, but why would they?' There have long been suspicions on the Right of coordination between Labour and the Liberal Democrats at general elections to maximise the chances of Tory defeats. The Lib Dems surged from winning 11 MPs at the 2019 general election to 72 MPs at the 2024 general election with almost no increase in overall vote share. The party's strategists have talked about how they ruthlessly focused on a small number of winnable seats rather than competing hard everywhere. Labour was likely to have benefited from the decreased campaigning in non-target seats. But there are reasons why striking some form of deal would be less likely in elections for the Scottish Parliament than the UK-wide Parliament in Westminster. The electoral system for the Scottish Parliament has a proportional element, meaning as well as individual constituency races a party wins some MPs for their overall vote totals. Reform, whose strategists hope to get between 10 and 20 MSPs next spring, is expected to get their victories almost entirely via this way, known as 'the list', rather than winning constituencies. That could provide a disincentive to strike a deal with the Tories, given a lower overall vote total would likely mean fewer MSPs thanks to this proportion element of the election. In polling for next spring's Scottish Parliament elections, Reform is on around 17 per cent, above the Tories on around 12 per cent. The SNP is top, followed by Labour. A year ago, it looked likely that Labour could win power in Scotland but a support slump since Sir Keir Starmer took office last summer means the SNP is now well-placed to remain in office. A Scottish Conservative spokesman said: 'Nigel Farage has said he is content with the SNP winning another five years in power and Reform stood multiple pro-independence candidates in the general election, so no, this won't be happening. 'The Scottish Conservatives want to get the SNP out of power, while Reform will gladly help the nationalists.'
North Wales Chronicle
an hour ago
- North Wales Chronicle
Fact check: Recognising a Palestinian state, misleading tsunami video and deportations vs returns
Is the Government on track with its pledge to recognise a Palestinian state? On July 29, the Prime Minister announced that the UK would recognise Palestine as a state in September, ahead of the United Nations (UN) General Assembly, unless Israel meets certain conditions. Labour's manifesto committed to formally recognising a Palestinian state 'as a contribution to a renewed peace process which results in a two-state solution'. A 'two-state solution' refers to a proposed framework to resolve the ongoing Israeli-Palestinian conflict, in which a sovereign Palestinian state is established alongside Israel. Previous efforts at a peace process did not result in a sovereign Palestinian state. UK governments have long been in favour of a two-state solution, as well as recognising a Palestinian state as part of a process towards that goal. All members of the G7 group of countries have pledged support for a two-state solution, as has the EU and China. Palestine is currently designated by the UN as a 'permanent observer state', a form of non-member state, meaning it cannot vote on decisions made by the UN's main organs and bodies, such as the General Assembly. However, the majority of UN member states have formally recognised Palestine. According to media reports, as of July 2025, some 147 UN member states formally recognised Palestinian statehood, not including France, which in the same month committed to recognising Palestine at the General Assembly in September. The UK is not included in this figure, although it does have a Consulate General in Jerusalem to assist British nationals in the Occupied Palestinian Territories. It has been reported that a number of UK peers have questioned the legal basis for any recognition of a Palestinian state. Full Fact has contacted the Government for comment on this. How fact checkers helped set the record straight on PM's viral video When 31-year-old Abby Raworth first realised her photo and name were being shared online – falsely linked to a viral video involving the Prime Minister – she assumed it was a mix-up. Posts on social media claimed that the woman in the video was not mum-of-three Nicola but was really a 'paid actress' or 'actress and agent' named Abby Raworth. Full Fact's investigation brought to light how much was being written about her online 'without any regard for if it was correct or not.' Abby has spoken to Full Fact about her experience, telling us: 'What shocks me is how little people bothered to do regarding checks before they used someone's name and accused them of something. There is a lack of accountability for what comes out of peoples' mouths and if it had happened to any of those people they would have a different opinion on it.' We're grateful to Abby for sharing her story to help show exactly why Full Fact exists to counter the harm caused by misinformation. Old tsunami video circulates amid Pacific evacuations A video circulating online amid major evacuations across the Pacific is claimed to show a tsunami which has taken 'thousands of lives'. But this is misleading. The footage shows three people, including the person filming, narrowly escape huge waves that crash into some small boats on a shore. It was shared online following news of an 8.8 magnitude earthquake off the coast of Russia, which triggered the evacuation of almost two million people across Japan. Warnings were also put in place in other locations including Hawaii, Ecuador, Indonesia, Peru and China. A caption shared with the video said: 'Massive Earthquake triggers Tsunami taking thousands of lives in seconds with little to no warning.' But this footage is not current, or related to the earthquake in Russia or the subsequent tsunami warnings. It actually showed a tsunami which occurred on the west coast of Greenland in 2017, triggered by a landslide. That tsunami did not kill 'thousands', as stated in the social media posts. Four people were killed, and nine others were injured. The same footage has been wrongly shared in the wake of other earthquakes before. Has Labour carried out 'record deportations'? Labour MP Mike Tapp recently claimed that the Government has carried out 'record deportations'. We've frequently seen MPs and ministers using the word 'deportations' when referring to all immigration returns. Not all immigration returns are 'deportations'. We don't actually know how many meet the official definition of a deportation, which the Home Office defines as 'a specific subset of returns which are enforced either following a criminal conviction or when it is judged that a person's removal from the UK is conducive to the public good'. We do know, however, that enforced returns – the category of returns which includes deportations – account for a minority (26%) of all returns carried out under Labour during its first year in office. According to ad-hoc figures published by the Home Office, during Labour's first year in office a total of 35,052 returns were recorded. We don't have the data to compare this exact period to the same period in previous years, but official immigration statistics show that this figure is not a record for the number of immigration returns over a 12-month period, going back to 2004 when this data series began. These figures show that immigration returns over a 12-month period were consistently above 40,000 between 2010 and 2016, for example. It does appear, however, that the 35,052 returns in the first year of this Labour government represents the highest 12-month figure since 2017. While we don't know how many of these returns were official 'deportations', the figures show that the 9,115 enforced returns carried out between 5 July 2024 and 4 July 2025 also do not represent a record. While this figure is the highest number of enforced returns carried out over a 12-month period since 2018, prior to 2018 enforced returns were consistently above 10,000 over a 12-month period. MPs should use statistics transparently and with all relevant context and caveats, and quickly rectify oversights when they occur.
Rhyl Journal
an hour ago
- Rhyl Journal
Last wheat delivered to largest bioethanol plant under threat after trade deal
Vivergo Fuels, near Hull, has said it is facing closure within weeks following the decision to end the 19% tariff on American bioethanol imports as part of the recent UK-US trade deal. The plant buys more than a million tonnes of British wheat each year from more than 4,000 farms and says it has purchased from 12,000 individual farms over the past decade. Managing director Ben Hackett wrote to growers earlier this year explaining that the plant will only be able to honour existing contractual obligations for wheat purchases while uncertainty continues. Mr Hackett said the last scheduled load arrived at the plant on Friday. Last month, Vivergo, which is owned by Associated British Foods (ABF), said it is was beginning consultation with staff to wind down the plant, which employs more than 160 people, due to the uncertain situation – a process which could see production stop before September 13, if support is not provided. It said Britain's two largest bioethanol producers – Vivergo and Ensus in Teesside – are now in urgent negotiations with the Government. The firms say the UK-US trade deal and regulatory constraints on the industry have made it impossible to compete with heavily subsidised American products. Mr Hackett said on Friday: 'We have a choice of going down a path of stagnation, decline, unemployment, economy shrinking, or we have a choice of going towards a path of investment, growth, prosperity, job creation, and that's why it's crucially important that the Government comes to a decision quickly, and comes to a decision in favour of supporting the UK bioethanol industry.' Farmer Matt Pickering, of Pickering and Sons, near Gainsborough, Lincolnshire, sold the last load of wheat to Vivergo. Mr Pickering said: 'We struggle with the quality of our land type, so we tend to go for out-and-out bulk volume shed fillers. Vivergo has been a fantastic home for us to sell feed wheat into.' Mike Green, owner of haulage company AgHaul, who transported the last load to the plant, said: 'We're in the dark. We don't know where we're going. 'It's very uncertain, uncharted waters, and it's worrying as we've already seen a decline in work.' The landmark came as Meld Energy said the uncertainty over the plant is putting its plans for a 'world-class' green jet fuel project on the Humber in jeopardy. Earlier this year, Meld Energy signed a £1.25 billion agreement with Vivergo Fuels to anchor a Sustainable Aviation Fuel (SAF) facility at Saltend Chemicals Park in Hull. Meld Energy chief executive and founder Chris Smith said: 'We're excited about the potential to bring our sustainable aviation fuel project to the Humber – one of the UK's most important industrial and energy hubs. 'But, for projects like ours to succeed and the flow of vital investment to be forthcoming, we need a strong and integrated low-carbon ecosystem. 'A bioethanol plant on site at Saltend is a critical part of that mix. Without it, we'd have to consider alternative locations overseas where that infrastructure is already in place.' A Government spokesperson said: 'We recognise this is a concerning time for workers and their families which is why we entered into formal discussions with the company on potential financial support last month. 'We will continue to take proactive steps to address the long-standing challenges the company faces and remain committed to working closely with them throughout this period to present a plan for a way forward that protects supply chains, jobs and livelihoods.' The Government said officials and ministers have met with Vivergo and Ensus consistently over the last few months to discuss options to address 'significant challenges' that the bioethanol industry has been facing for some time. It said engagement with the companies 'continues at pace' and external consultants have been brought in to help.
