London CIV publishes 2024 TCFD Report

London CIV is proud to present our fourth annual Task Force on Climate-Related Financial Disclosures (TCFD) Report as part of our ongoing commitment to climate action and responsible investment. This report describes our ongoing efforts to effectively manage climate-related risks as part of our fiduciary duty to our beneficiaries, as well as our commitment to take responsibility for our own climate footprint and impact on the world of the future. 

Download the London CIV 2024 TCFD Report here.

Download the London CIV 2024 TCFD Report here.

Managing climate risk is integral to our strategic planning and purpose, “Working together to deliver sustainable prosperity for the communities that count on us all."

Climate change is one of the most pressing global challenges facing our planet and our financial system. 2023 served as a stark reminder of these risks – it was the hottest year on record, with global temperatures exceeding 1oC above pre-industrial levels on every single day, for the first time ever.

There were record-breaking heatwaves in Europe and North America, devastating droughts in parts of Africa and Asia, and severe flooding around the world. These events had a disastrous impact on human life and livelihoods, causing widespread damage, displacement, and loss of life.

Climate-related events have a disproportionate impact on the most socioeconomically vulnerable, particularly citizens of less economically developed countries in the Global South, who are often more exposed to effects on infrastructure, agriculture, food security and public health.

Yet many key players are not taking responsibility for the impact they have on the world. This year has seen attitudes amongst some business and investors, particularly in North America, shifting back towards climate-scepticism, and the rolling back or watering down of climate commitments. Meanwhile, many key companies in high-emitting sectors, including some of our own oil and gas exposures, are not doing enough to adapt to the climate transition, increasing their vulnerability to stranded asset risk and potentially jeopardizing the long-term viability of their businesses.

This short-sighted approach not only threatens progress on climate action but also exposes investors to significant financial risks. For our Partner Funds, climate change risk management is a critical concern, with 30 of the London Local Authority Councils having declared a climate emergency. As of 2023, 11 of our Partner Funds have announced Net Zero commitments with an average target year of 2040.

At London CIV, we believe we have a responsibility to manage our impact on the world, to help create a safe and stable future for our Partner Fund beneficiaries, and for everyone. To this end, we have set an ambitious target to achieve Net Zero for our portfolio by 2040, as well as interim targets to reduce emissions 35% by 2025 and 60% by 2030.

We have already met our 2025 target for our investee’s Scope 1 and 2 emissions, although our progress for Scope 3 has varied, often driven by issues with underlying data quality. We recognise that there is still much work to do, and are in the process of developing a more detailed climate action plan which will be published later in 2024.

This year we have also worked on launching new products and services which support the transition to a Net Zero world, including our LCIV Nature Based Solutions Fund which is due to launch in the second half of 2024. We provide our Partner Funds with free of charge climate analytics reporting, covering both pooled and off-pool holdings, to support them in their own Net Zero journeys.

We have also calculated our own operational footprint for the first time and are in the process of engaging with the British Standards Institute (BSI) to become a carbon neutral organisation. At London CIV we are committed to transparency and continuous improvement in our approach to climate change.

This report serves as a valuable tool to communicate our actions and progress with our stakeholders, and we welcome your feedback.

Download the London CIV 2024 TCFD Report here.

Sources:

1 https://www.weforum.org/publications/global-risks-report-2023/

2 https://climate.copernicus.eu/copernicus-2023-hottest-yearrecord#:~:text=2023%20marks%20the%20first%20time,than%202%C2%B0C%20warmer

3 https://climateemergencydeclaration.org/climate-emergency-declarations-cover-15-million-citizens/