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<p>As responsible investors and members of the UN-convened Net Zero Asset Owner Alliance,
the Church Commissioners regard climate change as a vital issue and have pledged to
transition their investment to a net-zero greenhouse gas emissions portfolio by 2050.
They will set their first interim emissions reduction target as members of the Net
Zero Asset Owner Alliance in 2020 and will work with their public equities managers
to achieve it.</p><p>The Church of England National Investing Bodies (NIBs), are guided
by the commitments made by the NIBs in July 2018 General Synod debate on climate change
and investment. Starting in 2020 the NIBs are committed to disinvest from companies
that are not taking seriously their responsibilities to assist with the transition
to a low carbon economy. In a new commitment, the NIBs indicated that by 2023 they
would disinvest from fossil fuel companies that are not prepared to align with the
goal of the Paris Agreement.</p><p>The Transition Pathway Initiative (TPI) is a global
initiative, co-founded by the Church of England National Investing Bodies in 2017,
to assess companies' preparedness for the transition to a low carbon economy. It ended
2019 supported by investors with over $16 trillion of assets.</p><p>The Church of
England Pension Board launched the FTSE TPI Climate Transition Index in January at
the London Stock Exchange . The Index rewards those companies with public targets
aligned to the Paris Agreement whilst significantly underweighting or excluding those
that do not.</p><p>The new index embeds forward-looking climate data from TPI - namely
the TPI <em>carbon performance metric that </em>assesses a company on its plans for
alignment with the transition to a low carbon economy. Companies currently excluded
from the index would be included if they set public emissions targets (covering all
their emissions) aligned to the goals of the Paris Agreement. We believe it to be
the first global index of its kind that will allow passive funds to play an active
role in supporting the Paris Climate Agreement.</p><p>The Church is also part of Climate
Action 100+ (‘CA100+'), which is an investor initiative seeking to ensure the world's
largest corporate greenhouse gas emitters take necessary action on climate change,
consistent with goal of the Paris Agreement to restrict warming to well below two
degrees Celsius. CA100+ is supported by more than 370 investors with over $41 trillion
of assets. The Commissioners were founding supporters, the Transition Pathway Initiative
is one of the Climate Action100+ official data partners, and its assessments are used
to benchmark companies.</p>
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