We’ve been working hard to make our investments more climate-friendly for over 20 years. We believe climate change poses a serious threat to the pension fund, as well as to our environment and wellbeing. Collaboration with other like-minded investors is central to our approach and maximises our ability to effect real world change.
Our climate targets
We have a credible plan to reach net zero by 2045, underpinned by several near-term targets, designed to reduce emissions and finance climate transition.
1. To reach net zero emissions by 2045, or earlier. (This target will be kept under regular review.)
2. To reduce the carbon footprint on listed equities by 69% by 2030, compared to the 2019 baseline.
Our listed equity portfolio has already delivered a 48% reduction in its carbon footprint versus our 2019 baseline year. This puts us firmly ahead of the decarbonisation flightpath used to determine emissions reductions required to meet net zero by 2045.
3. By 2030, we’ll divest from companies that aren’t on target to reach net zero.
This ensures companies demonstrate the ambition required to get us to net zero. Our approach is based on industry best practice.
4. Engagement targets
By 2027 we plan to ensure that 90% of the highest carbon emitting companies we invest in will either be aligning to net zero or subject to active engagement.
Read more about how we are addressing the risks and opportunities presented by climate change in our investments in our Responsible Investment Annual Report 2024 (PDF, 1.18MB)