As well as aiming to deliver the best possible returns, they all come with responsible investment and governance built in as standard.
To protect the environment our customers will retire into, we need to engage with companies that can do the most to tackle the climate crisis.
We’re committed to cutting the carbon footprint across our investment portfolios in half by 2030 and achieving net zero by 2050. To help us achieve this, our flagship Governed Range will now include an even greater focus on Environmental, Social and Governance (ESG) factors.
Our passive equity funds are one of the key building blocks of our Governed Range. We’re taking a more active approach to the way we manage these funds through the introduction of ‘tilts’ which will reduce our exposure to the largest carbon emitters and increase our exposure to the lowest carbon emitters.
We’ll do this without changing the established risk profile of our investment solutions, or increasing our charges. This means you can continue to recommend a solution that provides value for money, while giving your clients confidence that they’re helping to tackle climate change.
In addition to carbon reduction, our more active management approach will give us the flexibility to adjust our exposure to companies with poor social practices or corporate governance issues.
To protect the environment our customers will retire into, we use our position as a shareholder to positively influence the behaviour of the companies we invest in through active engagement and exercising our voting rights.
To find out more about our range of responsible investment solutions, speak to your usual Royal London contact.