Climate change is the challenge that will define this generation. Temperatures are on track to rise by more than 3 degrees by 2100 if immediate action is not taken to curb global carbon emissions.
Royal London Asset Management’s climate change strategy is rooted in a deep commitment to stewardship and responsible investment.
We are committed to playing our part in achieving net zero through the following actions:
- Reducing the emissions of our investments by 50% by 2030 (tCO2e/$m invested) as part of the transition to net zero by 2050*.
- Engaging with policymakers, the companies we invest in, our peers and other stakeholders to play our part in enabling the fair transition to a sustainable world.
- Developing investment solutions that enable clients to invest in the low-carbon transition.
Our commitment is made at the firm-level and we will report periodically and transparently on the progress we are making. This commitment does not apply to all Royal London Asset Management funds and strategies because each will have different investment objectives. Please check your prospectus for details on specific fund-level objectives.
Our intention is to decarbonise Royal London Asset Management’s in-scope assets under management in line with the real economy. We will also work closely with our segregated clients towards this goal where they have made explicit public commitments to net zero. Royal London Asset Management’s efforts are focused on supporting the decarbonisation of the companies we invest in through engagement (and not decarbonising our portfolio regardless of the real economy). The commitment is based on the expectation that governments and policymakers will deliver on commitments to achieve the goals of the Paris Agreement. It also assumes this action does not contravene Royal London Asset Management’s fiduciary duty to external investors.
“Climate change is the biggest challenge facing our society today. As a responsible investor, Royal London Asset Management's ambition is to work with our clients to be a catalyst for a Paris-aligned economy. This permeates every aspect of our operations – from our Net Zero commitments, to the way we manage properties in our portfolios and how we engage with the companies we invest in."
– Hans Georgeson, CEO, Royal London Asset Management
* 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 Asset Management’s fiduciary duty to external investors. The commitment is baselined on the year 2020. It includes assets managed and controlled by Royal London Asset Management, but excludes segregated mandates managed on behalf of external clients, unless otherwise instructed.
