20% of Phoenix’s equity/credit assets exposed to high climate transition risks

Written by Adam Cadle

15/03/2023

Some 20% of Phoenix Group’s listed equity and credit portfolio is exposed to high climate transition risk sectors, such as energy, utilities, industrials and materials, according to the life insurer’s Climate Report 2022.

“These sectors dominate overall absolute emissions accounting for 71% of all listed asset emissions – indicating a concentration of transition risk,” Phoenix said.

The proportion of the insurer’s listed equity and credit asset portfolio exposed to the fossil fuel industry is 8% at 2021 year-end.

“Our stewardship activities are therefore targeted to encourage investee companies to adopt better climate practices which should help reduce portfolio emissions intensity,” the insurer stated. “We have defined out focused engagement list of 25 companies, which account for 40% of our financed emissions in material sectors in corporate fixed income and listed equity holdings. Through our engagement programme, dialogue with investee companies will be reviewed on an annual basis. In connection with our periodic monitoring of portfolio decarbonisation goals and carbon footprinting.”

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