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.

We're responsible for managing over £150 billion as at June 2022 of our customer's money. We believe we can make a significant difference on our customers' behalf by actively engaging with particular businesses and projects we invest in to influence positive ESG outcomes, while also delivering investment returns.

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.

How you can learn more

Use the support materials in our employee toolkit to help talk to your employees about responsible investments and how their pension makes a difference
Download our independent assurance statement (PDF, 383 KB)
Read about how we’ve achieved operational carbon neutrality by helping households and businesses in India

Our commitments to your employees

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 approach to develop more solutions so your employees can invest in the low carbon transition.

Engaging for positive change

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. And from 2025 we’ll begin divesting from companies who are unwilling and unable to transition.

Learn about a just transition case studies.

Committed to net zero

We’ve committed to achieving a minimum 50% reduction in CO2 emissions by 2030 and net zero by 2050 across our investments. We believe these changes will result in a significant reduction in the carbon intensity of our investments without significantly impacting risk or returns. Please refer to footnote 1.

It’s important to remember that investment returns are never guaranteed. So while there’s a chance your employees’ savings could grow, their value can also go down. This means they could get back less than they put in.

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 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.