Tuesday 13 April 2021

Wales Pension Partnership (WPP) launches decarbonisation initiative

The Wales Pension Partnership (‘WPP’), the pooling entity for the eight Welsh LGPS Funds, has implemented a new decarbonisation initiative across the £2.5bn of its global equity assets managed by Russell Investments.

This will see the WPP’s global equity mandate achieve a targeted reduction in both its carbon footprint and fossil fuel reserves exposure by 25% relative to its benchmark (the MSCI All Country World Index). The portfolio will also exclude companies that rely on coal to generate revenues.

The WPP is utilising Russell Investments’ Enhanced Portfolio Implementation (EPI) infrastructure to achieve its decarbonisation targets.

EPI leverages a centralised trading and portfolio management process with Russell Investments responsible for executing the investment strategies of the WPP’s underlying fund managers. With this framework, the WPP is able to benefit from greater control and customisation around decarbonisation and other ESG-related objectives. EPI also seeks to deliver trade efficiencies through sizeable reductions in trading activity.

The decarbonisation initiative represents a positive step towards the WPP’s climate related and wider ESG goals.

Commenting on the launch of the new decarbonisation initiative, Cllr Glyn Caron, chair of the Joint Governance Committee at the Wales Pension Partnership, says:

“Climate change not only poses significant challenges for society; it also represents a financial risk for our Constituent Authorities and scheme members. By reducing the carbon exposure within our active equity assets, in partnership with Russell Investments, we are seeking to address these challenges. We see this as a positive first step in meeting our long-term sustainability goals.”

Jim Leggate, Managing Director, UK Institutional & Middle East at Russell Investment, also comments:

“Issues around climate change and the transition to a low carbon economy are increasingly critical issues that institutional asset owners are seeking to address. We are pleased to support the WPP in their carbon reduction objective as part of a wider framework designed to reflect the evolving needs of their members. Through our Enhanced Portfolio Implementation framework, we are well positioned to deliver a holistic, efficient and low-cost customised solution that evolves with the combined long-term sustainability goals of the WPP’s Constituent Authorities.”

Eamonn Gough, Senior Relationship Manager at Link Fund Solutions, adds:

“As an engaged asset owner, the WPP understands the crucial importance of supporting the transition to a low carbon economy.  The enhanced implementation framework being utilised has the advantage of keeping the existing underlying managers and the broad operating structure whilst enabling the WPP to achieve aggregate portfolio decarbonisation.”




For more information:



Notes to Editors:

* List of Constituent Authorities

  • Cardiff & Vale of Glamorgan Pension Fund
  • Clwyd Pension Fund
  • Dyfed Pension Fund
  • Torfaen Pension Fund
  • Gwynedd Pension Fund
  • Powys Pension Fund
  • Rhondda Cynon Taf Pension Fund
  • City and County of Swansea Pension Fund


About WPP

The Wales Pension Partnership (WPP) was established in 2017. The WPP is a collaboration of the eight LGPS funds (Constituent Authorities) covering the whole of Wales and is one of eight national Local Government Pension pools.

It has a long, successful history of collaboration, including examples that pre-date the Government’s pooling initiative. It is proud of its unique identity as a Pool – its Constituent Authorities represent and span the entirety of Wales. Being democratically accountable means it provides the best of strong public sector governance and transparency.

WPP’s operating model is designed to be flexible and deliver value for money. It appointed an external Operator and makes use of external advisers to bring best of breed expertise to support the running of the Pool. The Operator is Link Fund Solutions and they have partnered with Russell Investments to manage the investments and assist in the reduction of investment management costs for all the Constituent Authorities.



Other News

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Wednesday 15 February 2023

Signatory to the UK Stewardship Code

We are delighted to announce that the Wales Pension Partnership (WPP) remains as a signatory to the UK Stewardship Code.


The 2020 UK Stewardship Code sets a high bar for stewardship, a standard which the Wales Pension Partnership (WPP) seeks to meet through its approach to responsible investment (RI). We are therefore delighted to have retained our signatory status for 2022.

Our focus for the year has been one of consolidation, reviewing our RI policies and building on our processes to ensure our pooling arrangement can better meet the needs of our beneficiaries. This year has seen more focus placed on the oversight and challenge of our providers, including undertaking deep dives into the climate and environmental, social & governance risks within our Sub-Funds. On our behalf, Robeco has voted on over 10,500 different resolutions and undertaken 280 individual company engagements. Our own focus on climate change is strongly reflected in a number of Robeco’s engagement themes and we continue to seek areas where we believe we support real-world change.

We recognise that there is still much more to do and, over the last 12 months, have appointed a dedicated RI resource to help us build on our RI commitments and meet the demands of stakeholders. We have also developed a Sustainable Active Equity strategy and a range of Private Markets funds, where consideration of stewardship and climate risk has been a focal point. We are also focusing effort on evaluating and communicating the progress the WPP has helped make on climate change over recent years.

We remain proud of our identity as a pool, where we will continue to evolve in collaboration with all eight Constituent Authorities within Wales – and the members of their pension schemes – to be effective stewards of their assets.

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Thursday 22 December 2022

Wales Pension Partnership appoints Schroders Capital

The Wales Pension Partnership (WPP) today announces the latest in its series of appointments to facilitate implementation of its Pooled Private Markets investment solutions.

Schroders Capital will develop the WPP pooled private equity investment programme, to meet Constituent Authorities’ needs in the asset class.

The appointment follows a rigorous procurement process run by the WPP with investment consultancy firm bfinance. The development will enable efficient and effective access to an illiquid asset class that has been a holding for LGPS funds for many years but that poses challenges in terms of access, cost and governance for single pension fund investors until scale is achieved.

Chris Moore, Director of Corporate Services at Carmarthenshire County Council (Host Authority for the WPP):

“Private Equity has been an important holding for the WPP Constituent Authorities but has historically been challenging to access in a cost effective manner. Pooling offers the opportunity to address this. We look forward to working with our newly appointed partners to meet this challenge and deliver efficient, effective and impactful Private Equity investment for the long term.”


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Tuesday 05 April 2022

Wales Pension Partnership awards Private Markets investment contracts

The Wales Pension Partnership (WPP) today announces a series of appointments to facilitate implementation of its Pooled Infrastructure and Private Debt investment solutions.

Russell Investments will develop the WPP pooled private debt investment programme, GCM Grosvenor will implement closed-ended infrastructure investments and open-ended infrastructure will be invested through CBRE Global Infrastructure Fund, IFM Global Infrastructure Fund and Octopus Renewables Infrastructure SCSp.

The appointments follow a rigorous procurement process run by the WPP with investment consultancy firm bfinance. The development will enable efficient and effective access to illiquid asset classes that are fast becoming significant holdings for LGPS funds.

The WPP’s Joint Governance Committee was established in 2017 and is responsible for oversight of the pool’s partner organisations and the services they deliver to the LGPS funds in Wales.

Carmarthenshire County Council acts as Host Authority, liaising day to day with the Pool’s external partners, on behalf of all of the LGPS funds in Wales.

Chris Moore, Director of Corporate Services at Carmarthenshire County Council (Host Authority for the WPP):

“Alternative asset classes have historically been challenging to access in a cost-effective manner. Pooling offers the opportunity to address this challenge. The WPP’s constituent funds have increasing strategic demand for these investments, and we look forward to working with our newly appointed partners to meet this demand.”


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