Our journey to net zero

We're taking action at scale

We aim to be a net zero business by 2050 and we are taking action to achieve this.  

Since our first Transition Plan, published three years ago, we have made excellent progress, including achieving our 2025 targets. Our latest Transition Plan sets out how we will continue to reduce emissions across our business and investments. While the journey ahead is by no means a straightforward one, our direction is clear: responsible long-term growth that supports better customer outcomes and helps shape the world people will retire into.  

While we currently invest in high emitting companies and sectors, we have developed a climate action plan to transition to net zero across our business. We believe we can help our customers reduce their exposure to climate-related risk and help them take advantage of the opportunities presented by the net zero transition.

Our strategy has three parts:  

• Invest – Investing for the future
• Engage – Engaging to multiply our impact
• Lead – Aiming to lead by example

Our drivers for action

Delivering better outcomes for our customers 

Our strategy helps us deliver better outcomes for our c.12 million customers by mitigating their exposure to financially material climate-related risk and helping them realise the opportunities from investing in companies and sectors that stand to gain from the transition to net zero.  

Supporting our commercial objectives 

Our strategy helps drive commercial value for our shareholders by helping us to win new business in markets where sustainability credentials are now expected. We are channelling investment towards net zero-aligned companies and projects which will drive shareholder returns.  

Fulfilling our societal responsibilities  

As a purpose-driven organisation, we recognise our responsibility to contribute to the wider societal effort to tackle climate change. Our strategy reflects this by helping to build a world worth retiring into. 

Delivering good customer outcomes

Our customers are at the heart of our plan and our actions are aligned with delivering good outcomes for them. Our analysis shows that, in the long term, failing to decarbonise our portfolio will likely expose our customers to increased risk and will lead to less resilient investment portfolios. We also believe that companies whose business models align with a net zero transition are more likely to benefit from the growth opportunities presented by a low carbon future.

Read our Net Zero Transition Plan to find out more about our approach to decarbonising our investment portfolio, own operations and supplier base.

When customers pay into their pension, that money is invested to ensure that they have an adequate pot to live on when they retire. Some people choose to make their own decisions about how their pension is invested, but many rely on their pension company to do this for them. The ways in which this money is invested, and then how those investments are used, can have a significant impact on helping to address climate change.

Our default fund is our Sustainable Multi Asset solution. This solution's investment options focus on growing our customers' pension pots, particularly in the early years of their investment journey.

Our targets and progress to date

We have made significant progress to date and remain committed to being a net zero business by 2050. 

• We’ve achieved our 2025 targets: 
  • 58% reduction in emissions from our listed equity and credit portfolio versus our 25% target
  • 81% reduction in Scope 1 and 2 operational emissions versus our 60% target, well ahead of a net zero trajectory 

And we remain committed to our 2030 and 2050 net zero targets: 

• 2030:  
  • 50% reduction in carbon intensity of our investment portfolio¹ and our supplier base² 
  • 90% reduction in Scope 1 and Scope 2 operational emissions 
• 2050: Net zero across our investments, operations and supply chain 

¹EVIC intensity metric. Relative to 2019 baseline, where we exercise influence and control. Assets in scope include: Listed and private equity, credit assets and directly held real estate.  

²Location-based intensity measure, relative to 2022 baseline.