We consider return, risk and real-world impact in setting investment objectives.
We’ve committed our investments to net zero greenhouse gas emissions by 2050, with a 50% emissions reduction target by 2030, based on 2019 levels. This informs our investment decisions.
To help meet our net zero commitment, we’ve set a minimum target of 50% of investments with an explicit sustainability or ESG objective – for example, a green bond or a low carbon equity investment.
We’ve invested in green bonds since 2017. Our green bonds, including the UK government’s green gilt, finance a range of sustainability activities, such as low carbon energy and transport.
We’ve also:
- Invested in low carbon equity, with stewardship. The equity managers exclude the most unsustainable companies and increase our investments in more sustainable companies.
- Ended our direct commodity exposure to oil and gas replacing with base metals, which are used as part of the low carbon transition.
- Increased our allocations to environmentally aware cash.
We’ve joined the Institutional Investors Group on Climate Change, that provide expert input into our climate change measurement and actions.
Find out more about our approach to responsible and sustainable investment in our Statement of Investment Principles (SIP).