Over the next three years Scottish Widows will invest betwen £20bn and £25bn in companies that are pro-actively tackling climate change.
The pensions and investment company says this includes at least £1bn into firms developing climate solutions, such as alternative green energy, sustainable agriculture, and pollution prevention.
The company, which has over 6m pension customers, has committed to halving the carbon footprint of its investment portfolios by 2030, and aims to reach net zero across the entirety its investments by 2050.
Scottish Widows head of pension investments and responsible investments Maria Nazarova-Doyle says described this as another major milestone in the company’s journey to net zero.
She says: “This isn’t just about doing the right thing for the planet. Growing our customers’ savings is always our number one priority – and that means reducing the financial risk which carbon intensive companies increasingly represent, along with seizing the huge growth opportunities the green economy offers.”
The Climate Change Committee estimates £1.4 trillion will need to be invested between 2020 and 2050, to meet the net zero by 2050. The huge scale and speed of this investment represents an opportunity for UK business which can successfully adapt, innovate and address climate change.
Scottish Widows has partnered with Blackrock and Schroders to develop and refine a range of funds which favour investing in companies that are pro-actively adapting their businesses to be less carbon-intensive and/or are developing climate solutions.
To define climate solution investments, Scottish Widows looks at the proportion of company revenue associated with activities such as alternative energy, energy efficiency, green buildings, sustainable agriculture, sustainable water and pollution prevention. The company will use MSCI Environmental Impact Revenue data to help with this classification.
