Aegon UK firmly committed to 50% reduction in carbon emissions by 2030

Written by Adam Cadle

29/07/2021

Aegon UK is now firmly committed to a 50% reduction in its carbon emissions by 2030.

At the start of this year, Aegon announced a commitment to making its default funds net-zero by 2050, alongside an ambition to achieve a 50% reduction in emissions by 2030 (as recommended by the Intergovernmental Panel on Climate Change). Work on the project has progressed at pace however allowing the strengthening of the commitment.

The strengthening of the commitment comes as the volume of workplace default fund assets transitioned to ESG strategies has passed £10bn. The project team is now working with its asset management partners to agree the roadmap for moving the remaining default assets.

Aegon’s approach is to ensure that where changes are made to increase ESG allocations, these are done in a way that manages exposure to climate risk within the existing fund objectives, while maintaining the overall level of risk and return that the customer is expecting.

Commenting on the news, Tim Orton, managing director for investment solutions said: “The action we’ve taken will help us meet our commitments to our customers, who increasingly want to know that their money is invested in a climate-friendly and sustainable way. The approach we’ve taken helps reduce climate risk while continuing to offer savers an effective way to grow their money over the long-term.”

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