Avon on track to reach net zero target by 2045
Author: LAPF Investments | Published: June 24, 2026
The Avon Pension Fund has said it is on track to reach its 2045 net zero target, with it currently ahead of schedule having already met some of its 2030 climate targets early.
In an update to its members, Avon said this progress towards net zero has come from making “careful investment decisions”, with it reducing the amount it invests in high-emitting companies and increasing investment in climate-friendly sectors.
In addition to this, and in partnership with its investment partners, it also encourages companies to be more open about how they deal with climate risks and to strengthen their net zero commitments.
It went on to say that it’ll continue to prioritise stewardship, advocating for plans that turn climate goals into a reality and holding companies to account where progress stalls.
Outside of climate, it’s planning to grow its Local Impact Portfolio – which sees it directly investing in projects that benefit communities across the South West – to £300m by 2027.
The fund has already invested £70m into regional solar energy projects, supported the development of new affordable homes, and invested in “high potential” local businesses.
Speaking of affordable housing, the Avon is working with partners such as Octopus Capital to support the development of affordable family homes – both locally and nationally.
As part of this, it’s helped to fund the construction of more than 1,000 homes – with more than 800 already complete and the rest under development.
Additionally, in early 2026 it made its first investment in an affordable local homes – acquiring 16 energy efficient homes in Emersons Green, South Gloucestershire, and 24 homes in Paulton, Bath and North East Somerset as part of a £4m transaction.
It expects to help fund more than 400 new homes in the region over the next 12 to 18 months, with a number of these benefiting from low-carbon and smart technologies to reduce resident energy costs, as well as delivering attractive financial returns for the fund and its members.
