Our operational climate commitments
We’re taking action to reduce the emissions at our offices and from our energy use, travel and products we buy.
We want to play our part in the move to a sustainable world. While the majority of our emissions are generated through our investment portfolio, we’re mindful of how our own operations and value chain contribute to climate change.
That’s why we’re committed to:
- Reaching net zero in our direct operational emissions by 2030.
- Reaching net zero in indirect emissions from our non-investment value chain by 2050, with an interim target of a 50% reduction by 2030 from a 2019 baseline.
- Buying 100% renewable energy for our operations by 2025.
Our commitments are based on the expectation that governments and policymakers will deliver on commitments to achieve the goals of the Paris Agreement1, and that the required actions don’t contravene our fiduciary duty to our members, customers and clients.
Understanding our commitments
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Direct operational emissions
When we talk about this, we mean greenhouse gas emissions from sources that we own or control, such as the gas used in our buildings and our company cars (also known as our Scope 1 emissions), as well as the energy we buy to light and power our buildings (our Scope 2 emissions).
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Indirect non-investment value chain emissions
This refers to greenhouse gas emissions that result from business activities across our value chain, such as from goods and services we’ve bought, travel and waste (also known as our Scope 3 emissions, excluding investment-related emissions).
Read more information about greenhouse gas emission scopes, value chains, how we define net zero and our other climate commitments.
You can also find more information on the basis and assumptions underlying our climate targets in our Climate (TCFD) Report 2023.
How we’re reducing emissions
Our strategy to reduce our operational and value chain emissions includes:
- Upgrading our offices: we’re continuing efforts to reduce emissions from our offices, for example by installing solar panels at our Alderley Park office by 2029. In 2023, we completed the fit-out of our new London headquarters, incorporating sustainability initiatives from circular design principles to energy-efficient processes. We’ve reduced direct (Scope 1) emissions across our operational estate by 81% since 20192.
- Reducing waste: we’ve continued to send zero waste to landfill2 and will reduce our total waste by 50% by 2025, from a 2019 baseline.
- Using less paper: we’ve reduced the paper we send externally by 66% since 20192, exceeding our target of a 50% reduction by 2025. The My Royal London portal is one way that we reduce paper use as it lets customers access their documents digitally. More than 294,000 customers are currently registered3. We plan to reduce our internal paper use by 90% for each policy by 2025, from a 2019 baseline.
- Changing how we travel: we’ll halve our company car emissions by 2025, by travelling less and switching to all-electric vehicles. We’re continuing to reduce preventable business travel and, so far, we’ve decreased our business travel emissions by 38% since 20192.
- Working with suppliers: by engaging with our top-emitting suppliers, we aim to support and challenge them on emissions reduction initiatives and their path to net zero.
On our journey to net zero, we’re prioritising reducing carbon emissions. During our transition to net zero, we believe there’s a role for carbon offsetting – where we buy carbon credits to compensate for emissions still created through our operations. This has enabled us to be carbon neutral in our direct operations since 2020. We monitor good practice and continue to adapt our strategy as the voluntary carbon credit market evolves.
Find out more about our strategy and performance in our latest sustainability reporting.
Helping power homes and business in India
We’ve partnered with Climate Impact Partners to support solar energy systems for communities in India to offset the emissions generated by our offices and operations last year.
With a growing middle class in India, energy demand outstrips supply. In rural areas, households use kerosene or other fossil fuels, and the grid supply can be unreliable. Blackouts aren’t unusual.
Orb Energy manufactures, sells, installs and services a range of high-quality solar energy systems for residential and commercial customers in rural India. This project has brought over 160,000 reliable solar power and solar water heating systems to customers throughout the country. It also reduces around 55,000 tonnes of carbon dioxide equivalent emissions a year by replacing the use of kerosene or dirty grid electricity.
Household electricity bills are reduced by more than 50% when solar energy is used for water heating. These savings directly improve the quality of life for families in India and consistent lighting at home means greater opportunities for children to study. Businesses are also able to operate for longer and more consistently, which supports the local economy.
Footnotes
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- The Paris Agreement is a legally binding international treaty on climate change
For more information, visit the UNFCCC website - As at 31 December 2023
- As at 30 April 2024.