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  5. Our climate strategy
  6. Our operational emissions

Our operational emissions

We’re taking action to reduce our emissions from our energy use, travel and our supply chain.

Our commitment

We want to play our part in moving fairly to a more sustainable world. While our investments generate most of our emissions, we’re also aware of how our own operations and value chain contribute to climate change.

To reduce our emissions, we aim to:

We believe the best future for our customers is one where society achieves the goals of the Paris Agreement. Our climate commitments are based on the expectation that governments and policymakers will deliver on their commitments to achieve the goals of the Paris Agreement, and that the required actions do not contravene our legal and regulatory obligations to our members and customers. You can find more information on the basis and assumptions underlying our climate targets in our Climate Report (PDF).

Our strategy

 

Operational emissions

We’re focused on managing our office buildings responsibly, as well as reducing emissions from company cars. Since energy use is a large part of our direct operational emissions, we are prioritising using renewable energy and efficiency.

Value chain emissions

We’re working to reduce emissions from the goods and services we buy, from our colleagues commuting and working at home, and from business travel – as these are our greatest sources of value chain emissions.

Waste, paper and water

While our investment portfolio generates most of our emissions, we continue to take action to reduce our own operational impact that we control more directly.

We met our 2025 targets for purchase of 100% renewable electricity, and for external paper, waste and water usage. For 2025, our internal paper usage per policy was down 88% from our baseline.

Our progress so far

  • 100%

    renewable electricity used by our operations.

  • 94%

    reduction in our operational emissions since 2019, as of 31 December 2025 (Scope 1 and 2 market-based emissions).

  • 82%

    of our UK company cars are electric vehicles, as of 31 December 2025.

  • 34%

    reduction in our non-investment value chain emissions since 2019, as of 31 December 2025.

You can find further information on our progress in our Annual Report and Accounts 2025.

Glossary

When you’re reading about our climate strategy, these terms are helpful to understand.

Carbon neutral describes the state achieved when an entity that produces carbon emissions removes the same volume of carbon emissions from the Earth’s atmosphere.

When we talk about this, we mean greenhouse gas emissions from sources that we own or control, such as the gas used in our buildings and our company cars (also known as our Scope 1 emissions) as well as the energy we purchase to light and power our buildings (our Scope 2 emissions).

This refers to greenhouse gas emissions that result from business activities across our value chain, such as from our purchased goods and services, travel and waste (also known as our Scope 3 emissions, excluding investment-related emissions).

A legally binding international treaty on climate change adopted by 196 parties at the UN Climate Change Conference (COP21) in December 2015. Its central aim is to strengthen the global response to the threat of climate change by keeping a global temperature rise this century well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5°C.

The value chain is the series of stages involved in producing a product or service that is sold to consumers, with each stage adding to the value of the product or service.