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.
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
Footnotes:
- The term Net Zero means achieving a balance between the amount of greenhouse gases emitted into the atmosphere and the amount removed from it. The commitment is based on the expectation that governments and policy makers will deliver on commitments to achieve the 1.5°C temperature goal of the Paris Agreement. It also assumes this action does not contravene Royal London’s fiduciary duty to external investors. The commitment is baselined on the year 2020. It includes assets that are controlled by the Royal London Mutual Insurance Society Limited and are managed on its behalf by Royal London Asset Management Limited (RLAM). This includes the regulated investment funds managed by RLAM. It excludes segregated mandates managed by RLAM on behalf of its external clients.
- Net Zero direct operational emissions, with only residual offsetting. The commitment is baselined on the year 2019, as carbon emissions were significantly reduced by the impacts of Covid-19 in 2020. By 2025 the company is aiming to reduce its direct emissions by 60%, to be using 100% renewable electricity across its offices and to reduce its internal paper use by 90% and external use by 50%. In addition, it is committed to reducing its business travel carbon footprint by 50% going forward. It is also working with its suppliers to measure and manage its indirect operational emissions.