In brief: Vermont pension considers climate investment policy

Meketa will provide four policy suggestions for Vermont Pension Investment Commission including setting a net-zero target and increasing climate investments.

Vermont Pension Investment Commission, a $5.8 billion institution, will consider four approaches to climate-related investing, including setting a net-zero target and increasing climate investments.

Investment consultant Meketa is working on a climate report for the fund that will include an evaluation of climate issues in VPIC’s portfolio and four climate policy suggestions, according to a memo seen by New Private Markets ahead of today’s VPIC board meeting.

The options include a “climate aware” approach – which is VPIC’s current approach – and fossil fuel exclusions. Both of these require minimal additional time and resources from VPIC but will have minimal contributions to climate change issues, Meketa notes in the memo. Other options are to set a net-zero target and 7 percent annual decarbonisation commitments, and to increase investments in climate solutions.

Meketa has also surveyed all of VPIC’s public and private fund managers on how they address climate issues in portfolio management and exposure to fossil fuels and “green” investments. Today’s board meeting will include an update presentation from Meketa ahead of the report’s completion in the coming months.

VPIC invested $15 million in IFM Investors’ Net Zero Infrastructure fund in 2022.