The council, act as the administering authority of
the Gloucestershire Pension Fund, on behalf of
over 240 employers, and over 60,000 members25.
Most of the fund’s investments are managed
through the Brunel Pension Partnership, which
is a collaboration of 10 Local Government
Pension Funds. The Fund is fully committed to
providing transparent disclosures on investments
including carbon performance, where possible. A
net zero carbon target of 2045 has been set, as
well as interim milestones on carbon reduction
along the pathway to net zero. The Fund’s
carbon performance is compared to the average
investment and for the year ending December
2023, showed a relative carbon efficiency of +30%.
The fund is committed to the requirements of the
Taskforce on Climate Related Financial Disclosures
(TCFD) and intend to publish its first report in 2024,
prior to this being mandatory.
The analysis is based on the position as of 31 December 2023 and is used as the reported
position for 2023-24. The total value of the
Pension Fund at the end of Dec 2023 totalled
£3.28bn, of which the County Council’s (including
GCC Schools) value totalled £1.53bn, which
equates to a 46.6% share of the Fund. The value of
equities and Bond Investment holdings held by the
Fund, where carbon data was available for analysis
totalled £2.135bn. Therefore, the Council’s share of
this totalled £0.995bn are 58,616.47 tCO2e. There
is no carbon information currently available for the
remainder of the investment portfolio, but we are
continuing to work with fund managers and the
Brunel Pension Partnership to broaden this analysis over time.
Investments
GCC manages its surplus cash to generate a return for the authority to support the revenue budget. To manage inflation risk, this includes investing in several pooled strategic funds (£95 million). All these pooled strategic funds, any banks that we
use and our money market funds, which are used
for daily cash liquidity, are signed up to the UN
Principles for Responsible Investment. Excluding
our social housing REIT, (Real Estate Investment
Trust) the funds are also signed up to the UK
Stewardship Code 2020, and the Net-Zero Asset
Managers Initiative. Some of our funds have a very
small exposure to fossil fuel extraction, however all
are active in promoting responsible investing.
Of the £95 million invested in pooled Strategic
funds, £30 million of the value does not currently
have the data available to calculate a carbon
footprint, however the fund is looking at compiling
this data for future years. An additional £10 million
of the total value does not provide carbon data
for the fund invested in, as this fund does not
target any sustainable objectives. The total carbon
footprint of the remaining £55 million is calculated
as 10,871 tCO2e.
Javelin Park
The Gloucestershire Energy from Waste Facility
at Javelin Park is run by FCC (formerly run by
UBB), and as GCC receives an income from the
electricity generated at the facility, some of the
CO2 emissions emitted from the facility need to
be attributed to GCC’s carbon calculations. To
achieve this, the proportion of total profit can be
utilised. Profit for 2023 was not available at the
time of publication (13th November 2024). Profit
proportion for 2022 was calculated at 10.0%.
The emissions are determined using the total
estimated emissions in 2023 from the combustion
of waste at the facility, which were 153,214.28
tonnes of CO2 (other greenhouse gas data are not
currently available). This was countered by 46,449
tonnes due to the electricity generated at Javelin
Park which is deemed as being approximately 50%
renewable27 resulting in net emissions 106,765.28
tonnes of CO2 for 2023. Using publicly available
data, the proportion of the profit was then applied
to the estimated net emissions to determine
GCC’s carbon emission allocation.