Green Bonds and the London Pensions Fund Authority

Meeting: 
MQT on 2015-07-15
Session date: 
July 15, 2015
Reference: 
2015/2353
Question By: 
Murad Qureshi
Organisation: 
Labour Group
Asked Of: 
The Mayor
Category: 

Question

Pension funds are now among the more active purchasers of green bonds. Did the London Pension Fund Authority (LPFA) invest in Transport for London's recent Green Bond offer? If not - why did it decide not to do so?

Answer

Answer for Green Bonds and the London Pensions Fund Authority

Answer for Green Bonds and the London Pensions Fund Authority

Answered By: 
The Mayor

At present, the LPFA is not holding the TfL Green Bonds within its portfolio. When it comes to making an investment decision the LPFA has certain internal required rates of return that it must achieve in order to be able to fund its liabilities, in accordance with its fiduciary duty.  Each investment is considered according to its merits. Environmental issues are one of the many factors that LPFA include in their investment process when making decisions on whether or not to pursue investment opportunities. TfL’s Green Bonds did not fall within LPFA’s investment criteria.