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Church Of England Invests $779 Million in New Climate Index

Westminster Abbey in London.

Westminster Abbey in London.

Photographer: Simon Dawson

The Church of England Pension Board has invested 600 million pounds ($779 million) in a new equity index it helped create focused on companies aligned with the goals of the Paris Agreement on climate change.

The 2.8 billion-pound fund said in a statement on Thursday it developed the FTSE TPI Climate Transition Index in collaboration with index provider FTSE Russell and the Transition Pathway Initiative at the London School of Economics Grantham Research Institute. It’s a response to calls from Mark Carney, the outgoing governor of the Bank of England, for pension funds to address the financial risks posed by climate change.

The new index will lead to a reduction in its holdings in “high-impact emissions sectors,” such as oil and gas. Three of the 10 most heavily weighted companies in the FTSE 100 are in energy and mining -- BP Plc, Royal Dutch Shell Plc and Rio Tinto Plc.