Addressing climate change is one of the most complex challenges we have ever faced. As investors, we all have a role to play achieving net zero, but the path is not simple or straightforward.
This year, as part of the Net Zero Asset Managers Initiative (NZAMI): initial target disclosure report, Royal London Asset Management (RLAM) has initially committed 71% of our total assets under management to be managed in line with net zero. To this end, we have established and are applying a net zero engagement framework. As an initial step, by 2030 we are targeting a 50% reduction of tonnes of carbon dioxide emitted per million dollars invested (tCO2e/$mn) from a 2020 baseline.
Our objective is to evaluate and or influence through engagement, companies representing 70% of RLAM's corporate financed emissions - this allows us to prioritise and focus our engagement on companies with the largest emissions and where we have an opportunity / responsibility to influence change. We will be seeking companies to adopt emissions reductions targets and climate transition plans linked to science-based and sector-specific methodologies, such as those set by the Science Based Targets initiative (SBTi) or other similar initiatives.
This is a financial promotion and is not investment advice.
The views expressed are those of RLAM at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.
This post was funded by Royal London Asset Management