Let’s retire into a world worth living in
We’re responsible for managing £153 billion* of our customers’ money. This money can play a part in helping society transition to a sustainable world while aiming to provide positive investment returns.
Climate change is the challenge that will define our generation. We think the action we take on climate change over the next decade can help shape the health of the planet for generations. So now is not the time to be passive. We must act now to help your employees retire into a future worth living in.
*£153 billion assets under management as at 30 June 2021
We can all make a difference
We’ve taken steps to reduce the carbon intensity of our investments while still offering you the same strong governance and risk management your employees currently enjoy as a Royal London customer.
We’ve made some changes to our workplace pension default fund which means your employees’ pension is now invested less in companies that have the highest carbon emissions and invested more in those that have the lowest carbon emissions.
We’ve made these changes on their behalf, with no extra cost to you or your employees.
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 for Scottish and Southern Energy
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.
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.
Our net zero targets
We're committed to achieving a minimum 50% reduction in C02 emissions by 2030, and net zero by 2050 across our investments.
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 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.