Our approach to climate change
As a provider of retirement, investment, wealth and protection solutions to individuals and corporate entities, we understand the role we play in reducing the impact of both our operations and our products and services on the environment.
We believe that climate change is one of the biggest challenges that our society will face in the decades ahead. If we are going to be successful in curtailing rising global temperatures and mitigating the effects of climate change on our environment, society and economy, we must act sooner rather than later.
We believe that it is important for us to show leadership in these efforts, which is why effective management of climate risks is a key strand of our Sustainability Strategy. The action we take today will be vital to our success as a business and the protection of our customers. In our view, there is a strong correlation between companies with strong environmental, social and governance (ESG) performance and strong, secure returns over the long-term.
Our climate change strategy aims to ensure that we:
- Play our role in limiting climate change and delivering equitable outcomes. We will do this by engaging, with and encouraging others to share our ambitions and feel empowered to act
- Protect our company and ensure that it thrives for the long term. We believe managing the impact of our business on the climate and engaging with climate issues, rather than leaving the problem to others will contribute to this aim
- As a direct result of the above, improve financial security for our customers and colleagues
Our key targets
Our interim targets for achieving net zero by 2050 are ambitious, especially given the challenges around climate data quality and availability. Given our bold objectives, we acknowledge that we may need to adjust our targets – and our approach to meeting them – as our business and our industry evolves.
* Here our investment portfolio refers to our shareholder funds.
In 2022, we made our first climate disclosure aligned to the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD). In the report, we set out how climate change is integrated into our governance, risk management and business strategy, as well as the metrics and targets that we use to understand our impact on the environment and our exposure to climate risks.
For further information on our climate commitments and steps so far, read our TCFD report here.