Climate change is a major global issue and its effects are already being felt. We are committed to being a positive catalyst for change, both in our operations and in working with our clients as a responsible investor.
We’ve launched our 2020 TCFD and environment report
to update you on the progress we’re making against our environmental and climate-related aims and commitments. The report aligns with the four pillars of the Taskforce on Climate-Related Financial Disclosures (TCFD). These encourage companies to disclose material climate-related risks and opportunities and outline how these are governed and managed.
Our Head of Sustainability Strategy & Reporting, Stephanie Leggett, said:
"Our industry has a critical role to play in demonstrating leadership in accelerating the transition to a sustainable, Net Zero economy. While the world may not currently be on a trajectory to achieve the 2050 targets set in the Paris Agreement, we know that we can continue to drive positive change – by combining responsible investment with reducing our operational impact.”
It starts with us – our operational progress
We focus on both the direct and indirect impacts that our operations have on climate change. Our aim is to reduce as much as we can, and then offset what remains.
Since we published our previous report last year, our achievements have included:
- Setting a new target of achieving a 50% reduction (from our 2018 baseline) in operational emissions by 2025 – an ambitious start towards Net Zero by 2050. This includes business travel and working from home emissions.
- Partnering with eco-tech business Pawprint to help our people understand their own carbon footprint and help us understand the collective impact of working from home.
- Becoming carbon neutral through offsetting 110% of our emissions, in partnership with ClimateCare.
- Launching a new charitable giving strategy with a focus on supporting biodiversity, starting with a pilot project to help protect and improve local greenspaces.
Investing with purpose – our investments approach
We are members of the Net Zero Asset Managers initiative and committed to Net Zero-directed investing across all asset classes. Around 25% of the assets we currently manage are committed to being Net Zero-aligned and we are focused on developing solutions to enable our clients to achieve their Net Zero 2050 goals. In addition, the majority of our Equity, Fixed Income and active Quantitative investing funds already have a carbon intensity below their benchmark.
Central to our investment approach is climate change research that shapes our decisions and solutions. This includes the market-leading white paper we published on climate-scenario analysis
, to help investors understand how different climate scenarios can affect the investment returns of the companies and markets in which they invest. We are also building on our track record of successful engagement with our investee companies to encourage ambitious and credible decarbonisation goals.
> Read the full TCFD and environment report for more information