A recently published report has revealed that in 2020 the Oxfordshire Pension Fund achieved the reduction in emissions, significantly beating its original target of 7.6 per cent.

Staff at all six Oxfordshire councils and many other local organisations pay into the Oxfordshire Pension Fund.

That target was based on the Paris Agreement, which aims to limit post-industrial global temperature rises to 1.5°C. The Paris Agreement drew on scientific consensus to set its targets.

Councillor Bob Johnston, chair of the pension fund committee, said: “There are many different arguments over the most effective climate investing strategy or policy, but the real proof is in the numbers.

“On that basis, Oxfordshire Pension Fund has made an exceptionally strong start, far outperforming its interim target in its first report, and putting it very much on track to deliver on its pledge to be Paris-aligned across all pension investments.”

The report is the first review since the fund adopted its climate change policy in 2020. Oxfordshire was not required to publish its first report until 2023 but believed transparency on its climate investing was too important to delay.

In addition to the reduction in emissions, the report also shows that the fund’s exposure to fossil fuel reserves decreased by 30 per cent over the year – reserves are an indicator of fossil fuel holdings and pose a potential stranded asset risk.

Reserves exposure is an important factor in assessing the success of a climate transition investment strategy.

On 10 September, the fund’s committee voted to move the full value of the fund’s passive equity investments of around £535 million, to a newly launched Paris aligned benchmark fund designed to align with the Paris Agreement goals.

The new fund will achieve an immediate reduction in emissions and fossil fuel reserves of 50 per cent and will deliver annual emissions reductions of at least seven per cent per annum. It will also effectively exclude all investments in coal, oil and gas companies.

Al Chisholm, from campaign group Fossil Free Oxfordshire, said: “We are delighted that not only has the fund reduced its emissions and fossil fuel reserves so dramatically, but the Pension Fund Committee has also chosen to move its passive investments out of companies that continue to explore for new fossil fuels.

“We see this as a critical step on the path to investing for a safer climate and more just world and would like to congratulate the committee for taking this decisive and forward-looking step.”