We invest responsibly for your clients
This can help us to:
- manage financial risks that could affect your clients' pension and ISA savings
- grow their money over the long term
- play our part in positively shaping the future.
We invest responsibly in line with Our Purpose: 'Protecting today, investing in tomorrow. Together we are mutually responsible.'
Our approach to responsible investment
Our balanced approach to responsible investment prioritises your clients' financial outcomes while considering the future they'll live in.
What we do
As a large, active investor, we use a 'toolkit' of approaches to aim to manage financial risks and uncover opportunities, adapt quickly to change and influence positive action. The investment approaches we choose to use will vary depending on where your clients are invested.
We also apply our group-wide policies and positions to our investments. These include our climate commitments, such as net zero goals, exclusions and approach to fossil fuels.
What we don't do
We don't immediately withdraw investment from a company if it fails to meet our environmental, social and governance (ESG) preferences. For example, if we have concerns about the credibility of a company's strategy to reduce carbon emissions.
Our starting point is to engage with the company so we can understand and influence how they operate. By doing that, we can prioritise your clients' financial interests and aim to play our part in moving fairly to a sustainable world.
However, if a company isn't making tangible progress - and this could have a negative impact on your clients' pension and ISA savings - we'll take necessary action, which may include exclusion.
At Royal London, responsible investing isn't the same as sustainable investing. Sustainable investing is a strategy that intentionally invests in companies or assets that contribute towards positive environmental and/or social outcomes. It also typically avoids investments in a wider range of industries and companies. We offer sustainable funds for clients looking for this approach.
How we invest responsibly
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Invest
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Engage
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Embed
Our responsible investment options
We embed responsible investment in our ready‑made investment options, at no extra cost to your clients.
You and your clients can also choose from our sustainable funds. These aim to invest in companies that contribute positively to the environment and society.
More information
Find out more about our approach to responsible investment.