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 £154 billion of our customers' money (as at September 2023). That money can play a significant part in helping society transition to a sustainable world, as well as generating sustainable long-term investment returns for customers.

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(1) by 2050 and reducing carbon emissions from our investment portfolios by 50% by 2030.

We're 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 talk to your employees about responsible investments and how their pension can make 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 which provide solutions to the challenges humanity faces do better than companies which 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 which 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 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(2).

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. These commitments are based on the expectation that governments and policymakers will deliver on the commitments to achieve the goals of the Paris Agreement and that the required actions do not contravene our fiduciary duty to our members and customers. 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. This includes the regulated investment funds managed by Royal London Asset Management. It excludes segregated mandates managed by Royal London Asset Management on behalf of its external clients.
These commitments are based on the expectation that governments and policymakers will deliver on the commitments to achieve the goals of the Paris Agreement and that the required actions do not contravene our fiduciary duty to our members and customers.