More than £10bn is now invested in ESG strategies through Aegon’s workplace default funds, according to the company’s latest figures.
Aegon says its TargetPLan LifePath default funds now have 75 per cent of assets for growth-stage savers invested in ESG-screen and optimised index funds from BlackRock.
Its Key Workplace ARC default funds, including the in-house Aegon Workplace Default fund, also have a growth-stage allocation of around 30 per cent to ESG-oriented funds. Specifically, they are invested in the HSBC Developed World Sustainable Equity Index fund.
Aegon says it is working with its asset management partner to agree the roadmap for moving the remaining assets into ESG strategies and reducing the overall carbon emissions of the portfolio.
Aegon says this progress has helped it strengthen its net carbon zero targets. At the start of this year, Aegon announced a commitment to making these funds net zero by 2050, alongside an ambition to achieve a 50 per cent reduction in emissions by 2030.
Work on the project has progressed at pace and Aegon UK is now firmly committed to a 50 per cent reduction by 2030 (as recommended by the Intergovernmental Panel on Climate Change).
Tim Orton, managing director for investment solutions at Aegon says: “Since setting out our commitment to making our default funds net zero by 2050, we’ve made excellent progress towards the target.
“The action we’ve taken will help us meet our commitments to our customers, who increasingly want to know that their money is invested in a climate-friendly and sustainable way. The approach we’ve taken helps reduce climate risk while continuing to offer savers an effective way to grow their money over the long-term.”