Phoenix Group has set interim carbon emission reduction targets for 2025 and 2030, equal to the annual emission of a quarter of UK homes, as part of its 2050 net-zero carbon ambitions.
The new interim carbon targets for 2025 and 2030, set at 25 per cent and 50 per cent respectively, will apply to the £250bn Phoenix controlled investments which includes £160bn of pension investments from Standard Life, Phoenix Life and Reassure customers.
Phoenix has also announced its partnership with Make My Money Matter to drive environmental change and integrate sustainability into investment decision making.
Phoenix’s responsible investment strategy includes strategy and governance, stewardship, ESG integration and decarbonisation of investment portfolios.
Phoenix CEO Andy Briggs says: “At Phoenix Group we have set an ambition to lead the way on responsible investment and to drive forward action to support the transition to a zero carbon economy. Setting interim near term targets is an important milestone on our journey to our investments becoming net zero by 2050 or earlier, to which I am personally committed. Within this, some £160bn of assets invested for our pension customers are going on that journey with us.
“Investing responsibly is also about encouraging good corporate governance practices and positively contributing to environmental and wider societal issues, while managing risk and ensuring good outcomes for customers. We have been working with government and our industry to influence legislation that will enable our entire industry to invest more in sustainable assets.
“With just 20 per cent of the world’s largest public companies having committed to net zero targets, and only a quarter of these pledges passing basic robustness tests, we are encouraging others to take action and set near term targets in line with the climate science too. We will be working with partners in the financial ecosystem and the many companies we invest in to encourage wider uptake of robust net zero aligned pledges and plans.”
UK Net Zero business champion Andrew Griffith MP says: “We are putting businesses at the heart of our net zero ambitions, so it is fantastic to see companies like Phoenix Group showing leadership by setting clear targets for reducing their carbon emissions. With the UN COP26 summit in Glasgow less than a month away, I hope this type of bold action will encourage other businesses to work with government and make similar commitments as we build back greener.”
Make My Money Matter co-founder Richard Curtis says: “Phoenix Group’s pledge to halve their carbon this decade sets the pace for other pension providers ahead of COP26, and with an additional £160bn now working towards tackling the climate crisis – not fuelling the fire – their pledge proves how powerful our pensions can be. But there’s still nearly £2tr in UK pension schemes that don’t align with the Paris Climate Agreement target of limiting global warming to 1.5°C – and this has to change.”