FOR ADVISERS ONLY
Our climate change commitments
Climate change is the challenge that will define our generation. In a rapidly changing world, we are on track to see temperatures rise by more than 3 degrees by 2100 if immediate action isn't taken to curb global carbon emissions.
There's more than £2 trillion invested in UK pensions* - and we’re working hard to unlock the power of the money your clients save with us, helping us invest in the transition to a low carbon economy.
We're committed to achieving a minimum 50% reduction C02 emissions by 2030, and net zero by 2050 across our investments.
Our net zero targets
Our research shows that customers care about climate change and we believe that the best outcome for our customers is that, collectively, we achieve the goals of the Paris Agreement and this informs our strategic goals. This is why we've committed to aligning our investments to net zero** by 2050.
We are signatories of:
**Net zero is the balance between the carbon emitted into the atmosphere and the carbon removed from it.
Your client's money is powerful
We are responsible for managing over £148 billion*** of your clients' and our customers' money. This can play a significant part in helping society transition to a sustainable world, while providing positive investment returns.
Rising to the challenges
We believe that companies that provide solutions to the challenges humanity faces do better than companies that cause problems.
We’re building on our responsible investment heritage to develop more solutions so you can invest in the low carbon transition.
It is not time to be passive
We work actively with the companies that we invest in to influence their plans to reduce their carbon emissions and transition to a sustainable world in a way that considers the impact on society.
Learn about a just transition for Scottish and Southern Energy
Risk management
We support initiatives that encourage progress in the fight against climate change. We are committed to achieving net zero by 2050 across our investments to meet the goals of the Paris Agreement.
*** As at 31 December 2020.
We know that climate change will have a long-term impact on customers and society, our investments, business and of course, our planet.
That’s why we have five key climate change commitments in place.
We require our asset managers to put a climate risk policy in place. We believe this helps to ensure the companies we invest in are playing their part to support the transition to a low carbon economy.
We’ll promote moving to a low carbon economy to influential policymakers and stakeholders.
We’ll consider climate change risk within our own risk management and business planning.
We’re also examining the fine details of our own operations, like how we can limit our carbon footprint, work more efficiently, and launch initiatives that will help us play our part in tackling climate change.
We’ll report on our progress in our annual report and on our website at least once a year, so you can stay up to date with what we’re doing.
We might not be able to predict the future, but we can prepare for it by having these commitments in place. We believe doing this can help to safeguard the long-term interests of our customers.
And help to protect our most valuable asset of all – the environment.
What this means for your clients
We’ll continue to look for ways to reduce our impact, become more efficient, and always think about the environment when making decisions about our offices and operations.
We take this responsibility seriously, so we’ll measure how we’re performing against our commitments on a regular basis, and will report our own environmental footprint publicly to our customers and members too.
How you can learn more
- Download our policy paper (PDF, 209 KB)
- Download our independent assurance statement (PDF, 383 KB)
- Read about how we’ve achieved operational carbon neutrality by helping households in Guatemala
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