- Royal London has reduced the carbon intensity of equity funds in its pension default solution by 12%, since 9 August 2021, by further embedding Environmental, Social and Corporate Governance (ESG) practices.
- Royal London will more actively manage £23bn invested in equity funds, through this ESG approach. By investing more responsibly for customers, the funds’ annualised carbon emissions have been reduced by over 700,000 tonnes, equivalent to over 400,000 individuals flying economy class from London to Hong Kong.
- More than half (57%) of consumers believe their pension provider should be responsible for investing their savings to positively impact climate change.
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Notes to Editors
- Royal London commissioned a survey from 6th-19th July 2021 with a sample of 2,943 nationally representative UK adults.
- 12% reduction is Weighted Average Carbon Intensity (scope 1 & 2) for the equity funds. This assumes the annualised Weighted Average Carbon Intensity of the non-tilted components of the equity fund has remained constant over the period.
- Comparison to flights is based on economy class tickets and is taken from How Bad Are Bananas? The Carbon Footprint of Everything (2020), Mike Berners-Lee.
- The total amount of all equity funds managed by Royal London Asset Management (RLAM) on behalf of the Royal London Mutual Insurance Society (RLMIS) that are being “tilted” to achieve a reduced carbon intensity is £23bn, as at 28 July 2021. This includes equity investments underlying the Governed Range and other RLMIS funds. The main equity fund used in the governed range, RLP Global Managed, constituted 46% of all Governed Range assets, as at 31 July 2021.
About Royal London
Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £153 billion, 8.8 million policies in force and 4,075 employees. Figures quoted are as at 30 June 2021.